AUTOSHOW - Fiat unveils world's greenest fuel engine

Models pose beside a Fiat 500 Twin Air Lounge car of Italian car manufacturer Fiat during the first media day of the 80th Geneva Car Show at the Palexpo in Geneva March 2, 2010.

GENEVA (Reuters) - Fiat will this year equip its trademark 500 model with a new, superclean fuel engine as it steps up emission reductions to remain among Europe's most eco-friendly car producers, its brand head said on Tuesday.

The Twin Air, a two-cylinder engine that Fiat unveiled at this year's Geneva International Car Show, will be installed in 500 vehicles as of September, Lorenzo Sistino told a news conference.

"It has taken the car sector 15 years to cut CO2 emissions by 20 percent. With the new Twin Air, the world's most ecological fuel engine, Fiat will cut CO2 by a (further) 30 percent in one stroke," Sistino said.

By unveiling the engine, which thanks to improved technology can offer the same performance of a four-cylinder one, the Italian carmaker continues in its effort to produce small, efficient and green cars.

"Twin Air is another step ahead for eco-technology and can represent a giant leap for the environment," Sistino said.

(Reporting by Lisa Jucca; Editing by Sharon Lindores)