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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.

New Mazda2 To Debut At October Paris Show

JAPANESE car maker Mazda has taken the wraps off its latest generation Mazda2 model. The compact hatch will be given its public debut at the Paris Motor Show in October. Taking many of its styling cues from the recently launched Mazda3 and mid-size Mazda6, the firm’s new small car also boasts a full range of its ‘Skyactiv’ technology focused on improving driving dynamics and boosting efficiency and economy.

Volvo, Geely working on shared architecture

Geely and its Volvo ward are working at developing a new compact car architecture that will be shared by both companies. For Volvo, this means a smaller luxury car, possibly a few. The platform will be modular, as is practically required in this day and age, ready to underpin different body styles or—if need be—an entirely new lineup.