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Mercedes-Benz recalls 85,000 vehicles for possible steering failure

Mercedes-Benz will recall about 85,000 of its 2010 and 2011 vehicles for a potential power-steering failure, the company said on Monday. The models being recalled are the 2010 C-class and E-class sedan, coupe and cabriolet. The potential failure is caused by a loss of power-steering fluid.

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.

Rear-end collisions increasing, says study

REAR-END shunts on the road are getting more common despite the advance of new anti-crash technology, according to new research by accident management firm Accident Exchange. Rear-end shunts – when one car drives into the back of another – have risen by 7% in the last three years as a proportion of all accidents. Each accident causes damage costing an average of £2,000 to repair.