BERLIN, June 9 (Xinhua) -- German Chancellor Angela Merkel and French President Nicolas Sarkozy announced on Monday that they have reached a compromise over EU plans to reduce car emissions in a bid to fight global warming.

    The two leaders made the announcement at a joint press conference after a Germany-Franco summit at the southern German town of Straubing.

    According to Merkel, both countries now support a European Commission goal of cutting average carbon dioxide emissions to 120 grams per kilometer by 2012 for new cars but with a substantial phasing-in period for existing models.

    EU plans to limit cars' carbon dioxide emissions have put Germany and France at odds for months with Berlin arguing that the plans would put Germany's luxury carmakers at a disadvantage to their French and Italian competitors which tend to build smaller, less polluting cars.

    Merkel called Monday's deal an "important breakthrough" which showed that Germany and France can work together to resolve major differences.