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Chevrolet to add the Sonic name, drop Aveo on its next subcompact

Chevrolet will drop Aveo and adopt a new name - Sonic - when its remodeled entry-level subcompact debuts next year. Chevrolet and General Motors Co, officials have been considering a name change for the subcompact sedan since October. GM North America President Mark Reuss said confusion over how to pronounce “Aveo” had sparked the desire for a change.

Future products: Coupe in Subaru's pipeline will be an image booster

Subaru plans to extend its lineup in late 2011 or early 2012 by adding a sporty coupe developed with Toyota. Also, an Impreza hybrid that uses technology from Toyota is expected in 2012. Toyota now owns about 17 percent of Subaru.

CAFE standards set to rise to 54.5 mpg for 2025

President Barack Obama on Friday revealed ambitious plans to raise the corporate average fuel economy standard for cars and light trucks to 54.5 mpg by the 2025 model year, a landmark move that will dramatically remake carmakers' product portfolios and consumers' buying habits. Unlike the first CAFE standards passed by Congress in 1975, the Detroit automakers now publicly support the high requirements and have begun retooling their fleets to adapt the changes. “[This] represents the single most important step we've ever taken as a nation to reduce our dependence on foreign oil,” Obama said in a morning press conference.