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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.

Volkswagen working on new VR6 engine

Volkswagen is pushing ahead with development of a new narrow-angle V6 direct-injection gas engine, sources from the German carmaker's engineering headquarters based in Braunschweig reveal. Engineering for the new engine is being overseen by Volkswagen's new head of engine development, Fritz Eichler -- who in a previous position led the development of the current generation of Mercedes-Benz AMG powerplants -- continues with a swept volume of 3.0-liters and an unfashionable 15-degree cylinder bank angle. It has been conceived for transverse mounting.

Experts predict nine-, 10-speed transmissions to dominate in North America

In March, luxury maker Land Rover proudly told an audience at the Geneva auto show that it would soon bring to market the industry's first nine-speed transmission. One month later, Ford Motor Co. and General Motors announced that they would jointly develop 10-speeds.