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U.S. seeks 5 percent annual fuel-economy gains through 2016

The Obama administration today proposed gasoline mileage and greenhouse-gas pollution standards for new vehicles for model years 2012 to 2015, filling in the blanks for manufacturers en route to a 35.5 mpg national target in 2016. The Transportation Department and EPA proposal calls for fuel economy to increase by about 5 percent each year, starting from an average of 27.3 mpg for the 2011 model year, the agencies said in a statement. The average car buyer would save more than $3,000 in fuel costs over the life of a vehicle, the statement said.

Harley-Davidson to shutter Buell motorcycle brand, will sell Italian division

Harley-Davidson is axing two notable brands as it refocuses on its core business. The iconic American motorcycle producer said on Thursday that it will kill the 26-year-old Buell brand and will sell recently acquired Italian motorcycle company MV Agusta. The announcement came as Harley revealed its third-quarter financial results, which saw its earnings and sales slip as it deals with the global economic conditions.

Mercedes CLA Shooting Brake on the way

Mercedes’ design boss Gordon Wagener has revealed to WhatCar that they are planning to go exactly the same route with the CLA as they did with the CLS, and create a coupe estate. The CLS Shooting Brake (pictured below) has been very well received, and with much of the world downsizing its cars a CLA Estate is a very sensible way to go, offering all the good design elements of the CLA – which already looks like a CLS on a boil wash – in a car that has more practicality. Wagener gave no idea of time scale for the CLA Shooting Brake, but with the first CLAs expected to hit customers in June it wouldn’t be a surprise to see a concept CLA Shooting Brake arrive by the time of the Frankfurt Motor Show in September before going on sale in 2014.