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Mercedes-Benz revives its classic Gullwing two-seater as the SLS

Mercedes-Benz's gorgeous 300SL--or Gullwing, as it is affectionately now known--has been reborn five decades after the iconic two-seater first sent the motoring world into a spin at the New York auto show in 1954. We were the first to report Mercedes' secret plans to resurrect the Gullwing following Dieter Zetsche's decision not to forge ahead with a second supercar in collaboration with its Formula One partner, McLaren. Now we can confirm the name--SLS--along with details of its state-of-the-art construction, unique driveline, performance and much more.

VW reveals plug-in diesel hybrid concept, claims 261 mpg

Volkswagen has used a car show in the Middle East nation of Qatar to unveil a two-seat plug-in hybrid concept car that the automaker says will deliver 261 mpg. The VW XL1 uses a lithium-ion battery pack, an electric motor and a two-cylinder, 0.8-liter diesel engine for the powertrain. We're still digesting the press release, but here are some highlights: -- VW says the XL1 can travel about 22 miles on electricity from the battery pack.

Peugeot 208 Hybrid FE (2013) at Frankfurt motor show

Here’s Peugeot’s salvo in the fight to make cars more economical: the 208 Hybrid FE. The supermini concept can achieve a claimed average of 112mpg (and a maximum of 141mpg), and emits only 49g/km of CO2. Peugeot is especially keen to point out it’s a conventionally shaped supermini with five seats, unlike VW’s own super-frugal XL1, which looks decidedly sci-fi in comparison, but has a smaller boot than a Ferrari 458… The 208 FE is 25% slipperier and 20% lighter than a regular 208, but that’s only part of the reason it allegedly achieves such eye-opening numbers at the pumps.