The automobile industry is again showing signs of adapting in order to meet stringent US clean air regulations.

The first clean air act appeared in the US in the 1970s, prompting fears that profits would be hit.

But the industry seems to be meeting the challenges posed by greater concern over fuel efficiency and emissions, as shown by Honda's clean-running CVCC engine and the development of catalytic converters.

German carmaker DaimlerChrysler has turned to efficient diesel technology engines to meet the challenge set down by US clean-air regulations.

The company is planning to start offering an E Class Mercedes with the first of its new efficient Bluetec diesel engines later this year.

"If one-third of SUVs were driven by diesel engines, you could save the imports from Saudi Arabia in total," to the U.S. market, DaimlerChrysler chief environmental officer Herbert Kohler told the Wall Street Journal.

Future fuel development may come from biofuels, developed from plants such as rapeseed or other vegetation.

According to the newspaper, DaimlerChrysler recently committed to work toward expanding the use of biofuels to ten per cent of the total motor-fuels market.

Ÿ Adfero Ltd