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Jaguar Land Rover needs more fuel-efficient cars to help the company meet tougher EU CO2 emissions limits that come into effect in 2020, as well as tighter fuel-economy targets planned in markets such as the United States and China. Failure to do so could result in government fines as well as hurt the automaker's chances of competing against rivals such as BMW and Audi.

To reduce CO2 emissions Jaguar Land Rover is making its vehicles lighter through increased reliance on aluminum and by launching diesel-electric powertrains. The diesel-hybrid version of the new 335-hp Range Rover Sport emits 169 grams of CO2 compared with the 194g/km produced by the 254-hp diesel variant without electrification.

Because it sells between 10,000 and 300,000 vehicles a year in Europe, Jaguar Land Rover qualifies for an exemption that gives it a default target of a 45 percent CO2 reduction between 2007 and 2020. This means JLR must achieve average emissions of about 130g/km by 2020, according to Brussels-based green lobby group Transport & Environment.

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Sources have told Automotive News Europe that Jaguar has bought into Schaeffler's fuel-saving valve system. Schaeffler's head of engine system development, Marin Scheidt, declined to confirm the new customer's name in an interview with Automotive News Europe, saying only that the second automaker to use the system is "in the luxury and sports car segment" and is not a German premium automaker. Multiple industry sources said the customer is Jaguar Land Rover, which declined to comment for this story.

Schaeffler's technology improves engine efficiency and reduces CO2 by optimizing the fresh air charge entering the combustion chamber. Initially arising from Fiat research, the system is currently used by Fiat Chrysler in Alfa Romeo, Chrysler, Dodge and Fiat models with engine sizes ranging from 0.9 liter to 2.4 liter. Since production began in 2009, 400,000 Fiat Group engines have been equipped with this technology, which won two PACE Awards in 2012


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