It's official - Volkswagen is unveiling a hybrid to challenge the mighty Toyota Prius. And not just any hybrid, but a diesel-electric hybrid it says will deliver 69.9 mpg.

VW's been experimenting with hybrids of the gasoline-electric variety since the early 1990s, but the Golf hybrid it will unveil next month at the Geneva Motor Show is the first production model the German company's rolled out. Volkswagen isn't offering much in the way of details, but the car is expected to have a parallel hybrid drivetrain with a 2.0 liter engine. Look for it to have an all-electric mode at low speed, start-stop capability, regenerative braking and a 7-speed DSG double-clutch transmission, according to Auto Express and AutoBlog Green.

Full story at Wired

Manufacturing.Net - August 24, 2007

DETROIT (AP) — General Motors Corp. says it is testing a new combustion process that could increase fuel economy in conventional engines by up to 15 percent.

NEW YORK (CNNMoney.com) -- Ethanol made from corn may be the sexy starlet of the nation's alternative energy policy but its cellulosic cousin is the young ingenue about to take center stage.

In Congress, where the 2007 energy bill is sparking heated debate over cutting tax breaks for oil companies and other provisions, legislative priorities actually call for a more ambitious program to develop ethanol from other sources over the next 15 years than from corn. Corn supplies could never keep up with American's insatiable thirst for gasoline, so other plant materials will be needed to fill the void.

More of the story HERE

Ford Passes Toyota in J.D. Power Initial Quality Rankings - Daily Auto Insider - Car and Driver June 2007

Ford supplanted Toyota—taking the top spot in five of 19 segments—in the 2007 Initial Quality Survey (IQS) by J.D.

Reuters - May 26, 2007

Nissan North America has a warning for customers: Placing your electronic key too close to your cellphone could leave you stranded.

The automaker is asking customers driving new models of two of its flagship sedans to keep their car keys and cellphones at least an inch apart to avoid disabling the "intelligent keys."

Cellphones kept near Nissan's I-Keys — wireless devices designed to allow drivers to enter and start their cars at the push of a button — can erase the electronic code on the keys, rendering them unable to unlock or start the cars.

Spotted here

The problem has occurred on the 2007 Nissan Altima and Infiniti G35 sedans, two top-selling models, the company says.

DETROIT (Reuters) - DaimlerChrysler AG's Chrysler group is recalling 270,958 minivans in the United States to fix faulty air bag sensors as they may not deploy because of corrosion, U.S. safety regulators said.

The vehicles being recalled are 2005 model-year Town and Country and Dodge Caravan minivans.

"Certain minivans are being recalled in states which use large amounts of salt for road de-icing to replace their up-front air bag sensors," the National Highway Traffic Safety Administration said on its Web site.

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By James R. Healey, USA TODAY

WASHINGTON — Honda (HMC) says it will put a sleek hydrogen fuel-cell sedan into limited production next year and also will sell a unique mass-market hybrid in the USA within two years, priced less than the $25,000 Civic hybrid.

The automaker announced the vehicles Thursday at a demonstration here of prototypes of the FCX fuel-cell sedans it will offer in the USA next year.

General Motors (GM) also has promised to hand over to individuals some time this year 100 Chevrolet Equinox SUVs modified to run on fuel-cell power.

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Japan's Toyota has overtaken US rival General Motors to become the world's biggest carmaker, a spokesman for the company has said.

»news.bbc.co.uk/2/hi/business/6586679.stm

"With nearly 400 new associates on board, production of the Toyota Camry officially began this afternoon at Subaru of Indiana Automotive Inc. in Lafayette."

»www.jconline.com/apps/pbcs.dll/a···152/NEWS

But Insurance Industry Finds That's Changing, And All Vehicles Are Safer Now

(CBS/AP) When comparing the death rates in passenger vehicles with similar weight, cars are still safer than SUVs and pickup trucks because of their lower center of gravity.

But new technology is helping to level the playing field, reports CBS News transportation correspondent Nancy Cordes.

"SUVs haven't always been the best choice for safety, and they still have a higher risk of rollover than cars, but our study shows that SUVs are becoming safer," said Anne McCartt, senior vice president for research of the Insurance Institute for Highway Safety.

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DETROIT (AP) — Chrysler Group (DCX) will begin selling two Dodge vehicles in China as the company tries to increase its presence in the world's fastest-growing automotive market.

The company planned to announce Friday at the Shanghai Auto Show that the Caravan minivan would go on sale in China toward the end of this year, and the Caliber small sport-utility vehicle would go on sale in the first quarter of 2008.

The Caravan will be built in China at Southeast Motor, a Chinese auto manufacturer in Fuzhou, Chrysler said in a statement. Calibers sold in China will be imported from Belvidere, Ill.

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If Found To Be Too Fast, It Can Affect Warranty, Lease Fees, Resale Value.

(CBS) How many miles you have on your car can affect everything from your warranty coverage and lease fees to your car's resale value.

Most U.S. ambulances are built using a Ford chassis with a 6.0-liter, International diesel engine, but supplies of it have now dried up.

»autoshow.autos.msn.com/autoshow/···3824773

"Subaru displayed the first horizontally-opposed turbo-diesel engine which combines with Symmetrical AWD, the all-wheel-drive system that the company has now been developing in its passenger cars for 35 years.

According to Subaru, customers in Europe have been requesting a diesel engine and the boxer turbo-diesel engine—now in the final stage of development—will go on sale early in 2008."

Product chief Bob Lutz: Volt prototype expected by the end of 2007

GENEVA - General Motors Corp has set a target for production of an all-electric car in 2010, GM’s product chief and Vice Chairman Bob Lutz said on Tuesday.

Lutz said the major uncertainty facing the Chevrolet Volt, a concept vehicle GM unveiled in January, was whether lithium-ion batteries can be developed to power it economically and safely.

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In the following businessweek interview with Toyota's top man Katsuaki Watanabe, he indicates that the next gen Prius will be equipped with Li-ion batteries.

»www.businessweek.com/magazine/co···4074.htm

TOKYO (Reuters) - Toyota Motor Corp. said on Tuesday it will build a new plant in the United States, the latest sign of its pressing need for capacity to keep up with booming demand, with media reports placing the factory in the southern state of Mississippi.

Company Cites Faulty Break Lights In Golf, GTI, Jetta And Beetle Cars

(AP) WASHINGTON Volkswagen of America Inc. said Monday it would recall 790,000 vehicles because of problems with the brake light switch.

By Chris Woodyard, USA TODAY

Automakers are adding inducements to help sell some gas-electric hybrid models — including Toyota's (TM) Prius for the first time — in a sign that low gas prices could be hurting sales.

Some of the incentives are the same kinds of sales sweeteners that automakers used to sell their biggest SUVs when gasoline prices neared or exceeded $3 a gallon — including 0% financing and cash back, an analysis by auto buying research site Carsdirect.com shows.

Starting this month for the first time ever nationally, Prius buyers can get 0% financing for two years or lease payments as low as $219 a month, says Toyota spokesman Bill Kwong.

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The world’s first horizontally-opposed turbo diesel engine – offering exceptional refinement and smoothness – makes it debut at the 77th Geneva International Motor Show next month on the Subaru stand.

Both the engine and symmetrical all-wheel drive drivetrain will be unveiled as part of Subaru’s press conference at the ’show on March 6 at 10.15 am.

»www.easier.com/view/News/Motorin···589.html