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Fiat unveils new 900cc TwinAir two-cylinder engine

Fiats of old used to feature noisy two-cylinders with a fetish for overheating, yet the Italians are at it again, this week releasing details of their new TwinAir two-cylinder 900cc engines. You can see how it works in our video below. The new engines, the first in a series of two-cylinders by the Italians, are designed to trump all other downsizing efforts. Headline figures from the 83bhp twin are 23% more power than the regular 1.2 four-pot and the same as a 1.4 16v - yet with 30% less consumption.

British EV prototype competes for $10m prize

A Silverstone-based company has emerged as the only British (and European) contender for the $10m Automotive X-Prize, a competition to find the most environmentally friendly car on the planet. Delta Motorsport’s E-4 Coupe concept has been accepted into the next stage of the X-Prize competition and the company now has to prepare a fully functioning prototype. Backed by an American insurance company, the X-Prize was set up to 'inspire a new generation of viable, super-efficient vehicles that help break our addiction to oil and stem the effects of climate change'.

Ariel Atom 3.5 (2012) first official pictures

It's difficult for Ariel to come up with a mid-life refresh for its cars - there simply aren't that many bits to fiddle with in the first place. Still, the boys from Somerset must have succeeded, because what we have here is the freshly updated Ariel Atom 3.5. As the name suggests, it's a development of the Ariel Atom 3, with a crop of minor visual  tweaks and some mechanical changes too, keeping Caterham and BAC looking over their shoulders.