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Lamborghini reveals 2011's new V12 supercar engine

Lamborghini today announced the first details of its new V12 engine and transmission, which Lamborghini president and CEO Stephan Winkelmann promises will be 'the strong heart of the Murcielago successor next year.' It's to be the first clean-sheet Lamborghini engine since the original V12 first appeared in the 350GT, nearly 50 years ago. Lamborghini is keen to promote the low weight yet high performance of the new V12, which produces 700bhp yet tips the scales at only 235kg. Sant'Agata has also announced a new transmission for the Murcielago successor.

Porsche recalls Carrera, Carrera 4 for tailpipe fix

Porsche announced last week that it will recall more than 2,200 Carrera and Carrera 4 911s because internal testing indicated the tailpipe could crack and detach from the rear muffler on vehicles with more than 25,000 miles. Affected vehicles include 2012 and 2013 models built between March 7, 2012 and Nov. 12, 2012.

Automakers try to stop increase in ethanol limit to 15 percent of gasoline

Automakers are seeking to head off an EPA ruling that would allow gasoline to contain 15 percent ethanol, up from 10 percent now, and they've won some bipartisan congressional support. The two main automaker industry lobbies have argued that the U.S. Department of Energy has done insufficient testing to assure that gasoline containing up to 15 percent ethanol won't harm vehicles.