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Volkswagen Taigun poised for production

Update: We've added a video of the VW Taigun in action. Check it out below. Volkswagen has moved a step closer to joining the small-SUV ranks -- it will produce its compact Taigun, VW sources told Autoweek.

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.

Chat live with AutoWeek executive editor Roger Hart on Friday

AutoWeek executive editor Roger Hart will field your questions at 12:30 p.m. on Friday. Roger just got back from the Amelia Island Concours d'Elegance, and he is editor of the CarLife section of the magazine.