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Fiat unveils new 900cc TwinAir two-cylinder engine

Fiats of old used to feature noisy two-cylinders with a fetish for overheating, yet the Italians are at it again, this week releasing details of their new TwinAir two-cylinder 900cc engines. You can see how it works in our video below. The new engines, the first in a series of two-cylinders by the Italians, are designed to trump all other downsizing efforts. Headline figures from the 83bhp twin are 23% more power than the regular 1.2 four-pot and the same as a 1.4 16v - yet with 30% less consumption.

Driving BMW's three-cylinder prototype

One of the motoren in the titular Bayerische Motoren Werkeis about to get smaller. How small, you ask? The three-cylinder in the cherry-red hatchback shown above is in fact one of BMW's legendary inline-sixes, albeit chopped in half with the proverbial Sawzall.

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.