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Vauxhall & Opel could merge with Peugeot Citroen.

GM Europe (Opel and Vauxhall) could extend their deal with PSA (Peugeot Citroen) with a Joint Venture or merger. When GM Europe and PSA announced they were forming an alliance earlier this year, we asked if this was an admission that the mainstream car market in Europe had changed forever, and an alliance between Opel, Vauxhall, Peugeot and Citroen was the only way to keep the brands viable. But we did also question what use a projected annual saving of €2 billion by sharing suppliers and co-developing platforms would be to PSA and GM considering their woeful losses.

GM to modify Chevrolet Volts to guard against battery fire

General Motors will add a structural reinforcement and devices to prevent overfilling of the battery cooling system in the Chevrolet Volt hybrid sedan to prevent the possibility of a fire after a side crash. The changes come seven months after a Volt caught fire three weeks after being crash-tested by the National Highway Traffic Safety Administration. The government agency in November opened a defect investigation into the Volt because of the battery fire.

BMW's N20 engine--four cylinders, more power

More power, greater torque, reduced fuel consumption, lower tailpipe emissions and less weight--but better? Before driving the BMW X1 xDrive28i, the first model to feature the German carmaker's new turbocharged 2.0-liter four-cylinder gasoline engine, we weren't so sure. The new engine, known as the N20 and set to lead a return of four-cylinder BMW models to North America for the first time since 1998, has been conceived to (indirectly) replace the company's long-running naturally aspirated 3.0-liter inline six-cylinder.