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Volkswagen OKs production of the Bugatti 16C Galibier, report says

Volkswagen AG has agreed to fund production of the Bugatti 16C Galibier sedan, Bloomberg News reported on Friday, citing two unnamed sources that had knowledge of the project. The 16C Galibier would join the Veyron sports car in Bugatti's lineup. But Galibier production may not start for two to three years while Bugatti retools its boutique manufacturing plant in Molsheim, France.

New Mercedes BLS leaks

Mercedes BLS - Leaked image from a Mercedes plant in Hungary There is no doubt that the 2011 Mercedes B-Class will arrive at Frankfurt next month. We’ve had a raft of details from Mercedes and even a set of interior photos of the new B-Class to tease its imminent arrival. What we don’t know is just how extensive the debut at Frankfurt is going to be.

Fiat unveils new 900cc TwinAir two-cylinder engine

Fiats of old used to feature noisy two-cylinders with a fetish for overheating, yet the Italians are at it again, this week releasing details of their new TwinAir two-cylinder 900cc engines. You can see how it works in our video below. The new engines, the first in a series of two-cylinders by the Italians, are designed to trump all other downsizing efforts. Headline figures from the 83bhp twin are 23% more power than the regular 1.2 four-pot and the same as a 1.4 16v - yet with 30% less consumption.