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Fiat Group is ready to quit ACEA, the European automakers' lobbying group, people familiar with the matter told Automotive News Europe.

Fiat Group CEO Sergio Marchionne told an ACEA board meeting today that the Italian group will exit the association if the interests of all European carmakers are not properly protected.

Sources said the board meeting, which included CEOs of European carmakers,was "stormy."

The meeting agreed a joint approach from carmakers to the European Commission for a 40bn euros loan to develop environmentally-friendly products.

Carmakers from France, Italy and Germany disagree over proposed legislation by the European Commission to cut average C02 emissions to 130 grams per kilometer by 2102.

Italian carmakers say the proposed legislation favors German carmakers such as BMW and Mercedes-Benz who sell cars with higher CO2 emissions than those of Renault, PSA/Peugeot-Citroen and Fiat, which sell mainly small and medium cars.

Speaking in Rome on June 30 at the annual meeting of ANFIA, the association of Italian automakers, Marchionne had said Fiat did not accept the draft legislation.

"Fiat Group will get to the 130g/km average fleet emission the Commission is asking by 2012, but we will not carry the burden for other automakers who are allowed greater emissions," Marchionne said.

According to the current weight-based system, Fiat Group would be forced to reduce its CO2 emissions to 122g/km, while automakers building heavier vehicles would be allowed to reach individual targets close to 140g/km.

ACEA accepts the Commission's proposed weight-based system, while asking for a progressive phase-in of the 130g/km target."Fiat will be under 130g/km by 2012, as requested by the Commission. We will also respect the ACEA commitment to slash our average CO2 emissions to 140g/km by 2008", Marchionne said.

Fiat Group, along with France's PSA/Peugeot-Citroen, was the lowest emitting automaker in 2007 with an average emission of 141g/km, according to the Brussels-based campaign group Transport & Environment.

You may e-mail Luca Ciferri at lciferri@craincom.de