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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.

Natural-gas-powered Honda Civic can stay in California carpool lane

Honda Civic GX drivers in California are smiling this week as they continue to have access to the high-occupancy-vehicle lane, even with just one person in the car. Even though one-occupant hybrid cars have lost access to the carpool lane, natural-gas-powered vehicles get to use it for another four years. Beginning on July 1, yellow-stickered partial hybrids were banned from HOV areas on the highways unless they carried the mandated number of people.

NHTSA may investigate Grand Cherokees over fuel-tank fire hazard

The Jeep Grand Cherokee from the 1993 to 2004 model years may be investigated by federal safety regulators after a complaint that its fuel tank is an exposed fire hazard that may have contributed to hundreds of deaths. Last month the nonprofit Center for Auto Safety complained that the SUV's fuel tank extends below the rear bumper and is inadequately protected from crashes and rollovers. The vehicle's fuel filler neck also tears off in crashes, said the center's petition for an investigation and recall.