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Peugeot 308 with 3-Cylinder engine sets new Fuel Economy Record. Sort of.

The new Peugeot 308 managed 99.1mpg in a fuel economy run in Spain Fuel economy records are a bit like official economy figures – they have little relevance in the real world. But that doesn’t stop car makers wanting a few headlines proving just how economical their cars can be, and that’s exactly what Peugeot has done with a fuel economy run in a new 308 fitted with their new 130bhp 1.2-liter PureTech three-cylinder turbo petrol engine. But instead of running the 308 in the real world, Peugeot chose to take their car off to the Almeria circuit in Spain – under the auspices of the UTAC (Union Technique de l’Automobile, Motocycle et Cycle) – to set a new record for fuel economy and distance driven on a full tank.

Hyundai i20 to go WRC Rallying

Hyundai has confirmed it’s going rallying with an i20 heading for the WRC sporting around 300bhp and 4WD. Hyundai has announced that it is going to compete in the FIA World Rally Championships with a car based on the three-door i20. Hyundai hasn’t been rallying since it withdrew from motorsport in 2003, but the arrival of more convincing models – and growing sporty pretensions in the Hyundai range – make a rally glow a sensible move for the Korean firm.

Cadillac may get future rear-drive hybrids

General Motors' two mode hybrid powertrain, used only in trucks, will migrate to rear-drive cars in the next generation, said Tom Stephens, GM's vice chairman of global product operations. Two likely candidates: Cadillacs, says consultant Jim Hall of 2953 Analytics in suburban Detroit. Last month, GM said it is developing an electric motor that is 25 percent smaller and 20 percent more powerful than the motor used in today's two mode hybrid full-sized trucks.