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New CAFE proposal would add $5,000 to sticker price, dealer group says

An Obama administration proposal to nearly double today's fuel economy standards could end up tacking on $5,000 to the sticker price of a new vehicle, a top official with the National Automobile Dealers Association said Tuesday. The proposal, which seeks to raise the corporate average fuel economy to 54.5 mpg by the 2025 model year, would force automakers to adopt costly fuel-saving technologies that could eventually price some buyers out of the new-car market, said Don Chalmers, chairman of NADA's government relations committee. NADA, a dealer trade association, represents 16,000 new-vehicle dealers who operate 32,500 franchises.

Jeep Grand Cherokee SRT8 gets Ferrari treatment for Formula One team

Two 2012 Jeep Grand Cherokee SRT8s made an appearance in Italy on Thursday as the keys were handed over to Formula One drivers Felipe Massa and Fernando Alonso. That's just another perk of working for a company that owns both Ferrari and Chrysler. The Jeeps are painted in Rosso Corsa, which translates to Racing Red, Ferrari's signature color.

Toyota to build Highlander hybrid in Indiana

Toyota Motor Corp. will invest $400 million to build a hybrid version of the Highlander crossover in Princeton, Ind. Toyota already builds the Highlander in Indiana but the hybrid Highlander has been assembled in Japan.