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Report: Gasoline engine has big bang for the fuel-economy buck

A government report says improving the gasoline engine will yield huge gains for the consumer and the environment as automakers consider ways to improve fuel economy over the next 14 years. The Obama administration's technical assessment looked at four technology scenarios by which automakers might attain suggested CAFE goals of 47 to 62 mpg for cars and light trucks by 2025. The scenarios differed by the portion of an automaker's fleet that was accounted for by electrics, hybrid electrics and plug-in hybrid electrics.

Video: BMW M1 Hommage

BMW took the wraps off its latest concept car at the Concorso d'Eleganza in Villa d'Este this past weekend. Called the M1 Hommage, the concept is exactly what it says on the tin: pay homage to the iconic M1 designed by Giorgio Giugiaro, which celebrates its 30th birthday this year. The design of the M1 Hommage concept is a thoroughly modern interpretation of the original - compete with a louvered rear window - but it has grown in size over its thirty year old forebear.

Sergio Marchionne warns of strife ahead in Europe

Fiat chief exec Sergio Marchionne today warned of troubled waters ahead as Europe's car makers prepare for a radical restructuring. Marchionne, who's the current president of trade body ACEA, said factory closures were looming and repeated his call for a concerted EU-wide response to overcapacity. He warned that national interest was blocking action to strip out excess capacity, caused after European new car demand crashed by 3 million in the past five years.