Fiat CEO Sergio Marchionne (pictured) would like his company to have the lowest CO2 emissions of any automaker in Europe by 2012. To help accomplish that goal, and stay ahead of the curve for emissions standards set by the European Union, the Fiat group is developing both gasoline and diesel hybrid systems for its small cars and vans.While he claims that Fiat is still currently in the research phase, CEO of powertrain technologies Alfredo Altavilla says, “if everything proceeds as expected, we could begin production within three years."

The hybrid system for small cars and minicars could be centered on a new two-cylinder 900cc gasoline engine, mated to an electric motor and a dual-clutch transmission. A slightly beefier system would be found in commercial applications like delivery vans, with a 2.3-liter diesel four combined with the electric motor and an automated manual transmission. Fiat believes that the small car system could yield C02 emissions below 90 grams per kilometer, which is well below the 120 grams per kilometer limit that will go into effect in 2012.

+ Automotive News Europe: Fiat plans hybrid cars, vans (subscription required)

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