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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.

Lamborghini shifts R&D focus from more horses to fewer pounds

Lamborghini's drivetrain wizards say they have all the horsepower they need for their super-fast cars. So from here on, performance gains will come from using lighter materials to reduce vehicle weight, instead of from chasing more engine thrust. "It has come to the point where acceleration equals consumption," said Stephan Winkelmann, CEO of the Italian automaker.

Revolutionizing the BMW M3

BMW is less than a year away from officially revealing the fifth generation of the menacing M3, the first to receive turbocharged six-cylinder power. The performance sedan, code-named F80, is expected to appear as a lightly veiled concept at the 2013 Geneva motor show, debuting the appearance and mechanical package of the M division's eagerly anticipated Mercedes-Benz C63 AMG rival. A showroom-ready version with a production interior arrives at next year's Frankfurt motor show, BMW sources say.