After being thrown on the defensive last week by a ground-breaking court case in California, the industry is ready to prove its environmental credentials by showcasing hybrid cars, biofuel technology and emission innovations.

The US state of California said last Wednesday it was suing six US and Japanese automakers for their alleged contribution to global warming, the first such legal fight in the United States.

The 2006 Paris event show will be the first time Chinese manufacturers display their wares at the show in the French capital, underlining their ambition to compete with the leading sellers in Europe: Volkswagen of Germany, PSA Peugeot Citroen of France and Ford of the United States.

The Chinese presence, which was established at the Frankfurt auto show last year, will be led by manufacturers Landwind and Great Wall Motor.

Over the course of the two-week show, which runs from September 30 to October 15, more than 65 new models are to be given their world premiere in front of the more than one million people who attend each year.

Alongside new green technology, manufacturers will also look to satisfy appetites for big, gas-guzzling sports utility vehicles (SUVs) and four-wheel-drives.

This has been one of the fastest growing segments of the car market in recent years, but a surge in petrol prices has switched many consumers' attention to the importance of fuel efficiency.

This year's show also coincides with a period of talks between some of the biggest names in the industry, many of which are struggling with acute global competition and rising production costs.

Renault and Nissan are in talks with General Motors with a view to including the struggling US giant in their two-way alliance.

And Malaysia's loss-making national carmaker Proton said Friday that the first round of talks on a possible pact with PSA Peugeot Citroen will begin this week.

Elsewhere in the industry, the US trio of General Motors, Ford and Chrysler are all struggling to adapt to demand for more fuel efficient vehicles instead of trucks and SUVs.

Volkswagen is in the midst of a giant cost-cutting program, French manufacturers Renault and PSA are facing falling market share in Europe while Italian group Fiat is still recovering after years of losses.

Meanwhile, Japanese group Toyota continues to expand. It set itself a goal last week of selling 9.8 million vehicles worldwide in 2008 as it looks to overtake General Motors to claim the crown as the world's top automaker.

earlier related report
Ottawa To Unveil Tough New Car Emissions standards

Meanwhile, Canada's Conservative government is expected to soon unveil brawny new vehicle-emissions standards that echo the most stringent on the continent, in California, the Globe and Mail newspaper reported Friday. The plan, which is expected to take effect in 2010 after a current voluntary deal with automakers expires, would curb pollutants that cause smog and diminish air quality, the newspaper said.

But it would largely ignore carbon and other greenhouse gas emissions linked to global warming, it said.

Eight northeastern US states -- including New York and New Jersey, as members of the Regional Greenhouse Gas Initiative -- have indicated that they will also follow California's lead in cutting greenhouse gas emissions and other air pollutants.

Environment Minister Rona Ambrose said Thursday in the House of Commons that the new regulations would likely match the mandatory emissions rules of those American states.

"We are ... engaging the eight United States on their (Regional Greenhouse Gas Initiative) climate-change system, and we are in talks with California about its new legislation," she said.

Meanwhile, California is currently embroiled in bitter litigation with automakers over its environmental rules.

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