Exclusive: Carmakers forced back to bigger engines in new emissions era

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Exclusive: Carmakers forced back to bigger engines in new emissions era

Renault, General Motors and VW are preparing to enlarge or scrap some of their best-selling small car engines over the next three years, the people said. Other manufacturers are expected to follow, with both diesels and gasolines affected.

The reversal makes it even harder to meet carbon dioxide (CO2) targets and will challenge development budgets already stretched by a rush into electric cars and hybrids.

"The techniques we've used to reduce engine capacities will no longer allow us to meet emissions standards," said Alain Raposo, head of powertrain at the Renault-Nissan alliance.

"We're reaching the limits of downsizing," he said at the Paris auto show, which ends on Saturday. Renault, VW and GM's Opel all declined to comment on specific engine plans.

Interesting U-turn. Manufacturers are turning to larger capacity engines to meet new emission rules....