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GM shifts gears, will keep Opel

General Motors' board of directors has decided that it will keep the Opel business and restructure it, putting an end to plans to sell the European operations to auto supplier Magna International. GM said it expects the restructuring of Opel to cost $4.42 billion (3 million euros), which it says is lower than the costs associated with outside bids for the company. GM said it will soon present its restructuring plans for Opel to the German government and other governments in Europe.

New Volvo Drive-E engine delivers 444bhp – from just 2.0 litres

The new Volvo Drive-E engine (pictured) delivers 444bhp When Volvo announced its new Drive-E engine range would consist of just a single petrol and diesel engine of 2.0 litre capacity, we did wonder if Volvo had given up on the idea of delivering properly powerful road cars. But it seems not. We already know that the T8 hybrid powertrain for the new XC90 will deliver 394bhp, but now Volvo has revealed a Drive-E concept engine that delivers an even more impressive 444bhp without the aid of electric motors and batteries.

2014 Chevrolet Cruze Turbo Diesel to deliver 46 mpg on highway

General Motors said the 2014 Chevrolet Cruze Turbo Diesel will deliver an estimated 46 miles per gallon on the highway, besting the company's initial target by four mpg. The estimate is also good enough to top the rival 2013 Volkswagen Jetta diesel, which achieves 42 mpg on the highway. The Cruze's 2-liter turbo diesel engine produces 148 horsepower, compared with 140 hp for the Jetta diesel.