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Ford to lower fuel economy rating on C-Max hybrid

Ford Motor Co. will reduce the stated fuel-economy rating of its C-Max Hybrid car -- a rare and potentially costly move that Ford spent months feverishly working to avoid. A Ford source with knowledge of the plan confirmed the company will announce the move on Friday.

174-mph Volkswagen Golf R400 heads for Beijing motor show

Volkswagen has divulged plans to reveal a spectacular new Golf R-based concept car called the Golf R400 at this weekend's Beijing auto show. Said to preview a possible limited production model from Volkswagen's increasingly active R performance car division, the Golf R400 runs a powered-up version of the Golf R's turbocharged 2.0-liter direct-injection gasoline engine aimed at providing it with the sort of firepower to match the current king of the Euro hot hatchback brigade, the Mercedes-Benz A45 AMG. VW The VW Golf R400 makes 395 hp from a 2.0-liter turbocharged four-cylinder engine.

VW to build engine plant in Mexico to supply Tenn. factory, source says

Volkswagen AG plans to announce Wednesday that it will build an engine plant in Mexico to supply vehicles assembled in North America, a source at the company's assembly plant in Puebla said. A VW spokesman confirmed that the company will make an announcement but declined to say what it will concern. The new plant will supply an existing VW plant in Puebla, 75 miles southeast of Mexico City, and one being built in Chattanooga, Tenn., the source said.