The European Commission may soften its stance on new-car CO2 emissions, a newspaper report said.
The EU has told automakers to cut average CO2 emissions of new cars sold in Europe to 130 grams per kilometer by 2015 or they will face financial penalties.
Car company executives say investments in technology to reach the target is heaping more pressure on tight profit margins as they struggle with declining sales in Europe and overcapacity.
The EU may soften the target by considering "infrastructure, driver behavior and other measures" when measuring compliance with the 130 g/km target, German daily Die Welt reported on Tuesday.
The paper cited documents prepared by policy group CARS 21, whose members include ministers from EU member states, auto executives, EU commissioners, and trade union representatives.
Fiat CEO Sergio Marchionne in his role as president of the ACEA industry association and European Industry Commissioner Antonio Tajani will make public the documents on Wednesday, the report said.
Reuters contributed to this story