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New CAFE proposal would add $5,000 to sticker price, dealer group says

An Obama administration proposal to nearly double today's fuel economy standards could end up tacking on $5,000 to the sticker price of a new vehicle, a top official with the National Automobile Dealers Association said Tuesday. The proposal, which seeks to raise the corporate average fuel economy to 54.5 mpg by the 2025 model year, would force automakers to adopt costly fuel-saving technologies that could eventually price some buyers out of the new-car market, said Don Chalmers, chairman of NADA's government relations committee. NADA, a dealer trade association, represents 16,000 new-vehicle dealers who operate 32,500 franchises.

Fisker Karma recalled over fire risk

The Fisker Karma has been recalled after a fire in Woodside, Calif., where the source was determined to be a low-temperature cooling fan. This is the second fire for the Karma this year; the other happened in Fort Bend County, Texas. Around 1,400 Karma models already in customers' hands will be recalled, along with 1,000 that have yet to leave dealerships.

New BMW M3 and M4 revealed for 2014

This is it, folks – this is your early petrolheaded Christmas present: BMW has released full details of the new BMW M3 Saloon and M4 Coupe. And we do mean full details. Output of 431 turbocharged horsepower is the headline, but really it’s the extent of the engineering overhaul carried out by BMW’s M division that really stuns the senses here.