FIAT Group chief executive officer Paolo Cantarella has presented a fleet of environmentally friendly vehicles to the Lombardy region of Italy.

The Italian manufacturer along with representatives from the Lombardy region and others including the Petroleum Union will take part in a work group created to establish a programme for the reduction of emissions that will continue until the year 2004.

The manufacturer said: 'During this period the Lombardy region is looking to increase the number of methane powered cars by upping the number of gas filling stations in the area and offering incentives for buyers of this type of green vehicle.'

So far, measures include payments to taxi drivers to ensure a total of 1,400 of them buy a methane vehicle during the next two years.

Lombardy region chairman Roberto Formigoni said earlier this year that the northern region of Italy plans to phase out the use of petrol-powered cars in favour of vehicles powered by more environmentally friendly fuels.

He said it plans to stop issuing licence plates to new petrol-powered cars starting in 2005 and permit only hydrogen-powered cars from 2008. He urged car manufacturers to start mass production of environmentally friendly cars saying the situation presented an opportunity for the car industry.