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Porsche is developing a new four-cylinder engine set to power entry-level model

High-ranking officials at Porsche's Weissach research and development center in Germany have confirmed that engineering work is progressing on a four-cylinder horizontally opposed gasoline engine, details of which were first revealed by Autoweek earlier this year. The new boxer unit--which is earmarked to power a new mid-engine, entry-level model that insiders describe as a spiritual successor to the iconic 550 Spyder--looks set to become an integral part of Porsche's future model plans. Insiders suggest it will also be offered on the third-generation Boxster and the second-generation Cayman later on in their respective model cycles.

Mercedes E300 BlueTEC (2011/2012) revealed

The Mercedes E300 BlueTEC - 70mpg and on sale late 2011 Just like every other car maker, Mercedes is trying to push ever more fuel efficient and low emitting cars to the market. The range of BlueEfficiency C Class and E Class are a good example, which should be a huge success. And they no doubt will be if Mercedes can solve the problems of the high-tech injectors giving up the ghost after a month or two.

Volkswagen buys stake in Suzuki

Volkswagen will buy nearly 20 percent of Suzuki for $2.5 billion in a deal poised to continue VW's ambitious growth plans and bolster its global product offerings. The companies announced the agreement on Wednesday, and it could close in January. The deal allows VW to draw on Suzuki's small-car capabilities and strong position in India.