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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.

2011 Toyota Yaris T Spirit & Yaris SR revealed

2011 Toyota Yaris gets two new models - T Spirit & SR The Toyota Yaris isn’t the coolest supermini on the block, but it does have a certain appeal and the benefit of being a proper ‘mini’ car – perfect around town. It even handles quite well, is well-built and has a surprising amount of room inside. Even with all that going for it Toyota are obviously expecting the New Year to be less than easy on car sales, so they’ve announced a couple of new models at the top of the Yaris range to tempt buyers with extra goodies for just a wee bit extra – or nothing at all.

Nissan to close Michigan design studio

In a cost-cutting move, Nissan is shutting its design studio at its research-and-development complex in suburban Detroit and moving the work to its main U.S. design studio in San Diego. The design studio in Farmington Hills, Mich., opened in 2005.