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Spy photos: BMW i8 hits Swedish test track

Spy photographers caught the new BMW i8 testing on a secret track wearing the company’s familiar psychedelic camouflage. The test car pictured is a preproduction model rather than a concept BMW i8, similar to what should appear in 2013. As reported earlier, we’re expecting BMW’s 2014 i8 hybrid coupe to get a 1.5-liter, three-cylinder direct-injection gasoline engine--essentially the same unit earmarked to head into the next-generation Mini and the front-wheel-drive BMW 1-series due out in 2014.

Volkswagen hits back, weighs making a bid for Porsche

Volkswagen is considering an audacious reverse-takeover bid for its majority shareholder, Porsche, in a twist in the drawn-out struggle for control between the two German carmakers. The Volkswagen Group's supervisory board is said to be weighing the possibility of purchasing Porsche AG, in a move that would relieve its holding company, Porsche SE, of massive debt that industry analysts suggest the company may not be able to fund should the world's financial crisis drag on well into 2010--a scenario put forward this week by the International Monetary Fund. The secret plan emerged as shareholders were set to convene at Volkswagen's annual meeting on Thursday, and it comes after Porsche revealed that it is carrying some 9 billion euros ($11.73 billion) in debt, most of it owing to interest on loans taken out to purchase its 50.8 percent stake in VW.

We're Getting More MPG

The average car/truck/SUV sold by the top eight brands in America makes almost one mile per gallon more than it did a year ago, according to sales-weighted data from the industry analysts at TrueCar. TrueCar's TrueMPG industry average of 23.7 mpg remains the highest the car market has seen, 0.7-mpg higher than at this time last year. The biggest gainers by brand are Nissan and Chrysler, which improved their fleets by 1.1 mpg over last year's numbers.