Honda has confirmed plans to launch a hybrid version of its Odyssey minivan, with efficiency ratings expected to reach up to 62 mpg.

An assistant large project leader in the company’s powertrain division, Takashi Shinchi, told Drive the development process is still in early stages, though a fuel-consumption reduction of “maybe 50 percent” appears to be attainable.

Engineers are currently working on several challenges for hybrid integration, with battery location at the top of the list. The company must carefully integrate the battery underneath the already-low floor, without bringing a negative impact to weight distribution.

The hybrid option is expected to be added to the fifth-generation Odyssey, which arrived in showrooms late last year. All trim levels are currently powered by a 3.5-liter i-VTED V6 engine that produces 248 horsepower and 250 lb-ft of torque, with a 19 mpg city rating and 28 mpg on the highway.

It is unclear if the hybrid edition will switch to a smaller engine, sacrificing power to help reduce fuel consumption to a level below Toyota’s Prius.

Honda is remaining tight-lipped about the development time-frame for the hybrid Odyssey.

Georgia legislators have moved to eliminate a $5,000 tax credit for electric vehicles, according to an Atlanta Business Chronicle report.

The sizable incentive has been considered one of the best in the country, helping the state rise to the top five in terms of EV registrations. Buyers who also take advantage of the $7,500 federal tax credit can effectively reduce the price of an EV purchase by as much as $12,500.

The incentive is now threatened by a bill introduced by Republican House Representative Chuck Martin and several other supporters. Martin argues that the current tax break was designed to help electric vehicles become “mass marketable,” and is no longer necessary because the goal has been accomplished.

Critics argue that the program should be left intact due to environmental concerns and its help in reducing the need for foreign oil.

Interestingly, Martin–a Kia Optima Hybrid owner–also introduced legislation that aims to reform dealer franchise laws and open the door for Tesla Motor’s direct-sales model.

“I want to allow people access to the (electric vehicle) market,” Martin said. “I just don’t want to make other people pay for their decision.”

The legislator further argues that the current credit system is too narrowly focused on zero-emissions vehicles, such as the Nissan Leaf and Tesla Model S. Several other states, in contrast, have programs that include hybrids and only provide tax incentives based on the price premium compared to the equivalent gasoline-only car.

The incentive-eliminating bill has yet to receive a formal vote.

Chrysler is reportedly seeking approximately $700 million in subsidies from the Canadian federal government and the province of Ontario.

The negotiations, detailed by The Globe and Mail, may have broad implications for the company’s Canadian operations. The automaker promises to use the aid to help fund a $2.3-billion modernization and expansion project at its Windsor, Ontario plant, along with another investment plan for a Brampton, Ontario facility.

The federal government separately announced plans to add $500 million to its general Automotive Innovation Fund, in an attempt to help create and maintain industry jobs in Canada.

Chrysler’s two Ontario plants already employ approximately 8,000 workers, though the expansion plans, including research-and-development operations for the company’s next minivan platform, are expected to add several thousand jobs.

The company already threatened to kill the expansion plans, and hinted that it could shutter the facilities, if the Canadian governments don’t play ball. Officials have signaled a willingness to consider additional incentives, despite potential backlash over the large sum.

The Canadian government has yet to confirm the reported numbers or announce a final decision.

Porsche’s next-generation 911 GT3 RS will reportedly benefit from 50 percent more downforce, further stripping-down to reduce weight, and a bit more power than the current GT3.

The additional downforce is said to be accomplished via a completely redesigned aerodynamics, with winglets on the front spoiler and a wider body to accommodate a stretched track, unnamed sources have told Auto Express. The changes should allow the new car to beat the current GT3′s 3.3-second 0-60 time, though top speed will likely take a hit.

The new RS is expected to be offered only with the company’s paddle-shifted PDK transmission, like the existing GT3, though the gear ratios and shifting parameters will likely be revised for higher revs.

Porsche is said to be already testing the new RS, including laps at the Nürburgring. More details are expected to be announced as early as next month ahead of a summer launch.

A new survey published by J.D. Power and Associates suggests vehicle quality may be on the decline for the first time since 1998.

The firm asked owners to report the number of problems they’ve experienced with their 2011-model-year vehicles. Responses show an average of 133 problems per 100 vehicles, marking a six-percent increase over the previous year.

“Until this year, we have seen a continual improvement in vehicle dependability,” said J.D. Power VP of global automotive, David Sargent. “However, some of the changes that automakers implemented for the 2011 model year have led to a noticeable increase in problems reported.“

The majority of the increase has been associated with engine and transmission problems, particularly for vehicles with four-cylinder engines or large diesel powerplants. Analysts suggest automakers may be making quality sacrifices to achieve better fuel efficiency.