Toyota is set to extensively overhaul its engine lineup as part of the brand’s “Toyota New Global Architecture” product development strategy.

The move, which underscores Toyota’s renewed focus on traditional gasoline engines after years of concentrating primarily on hybrids, will seek to increase fuel efficiency by 30 percent and trim costs on major components by 50 percent.

“We would like to achieve No. 1 performance in fuel economy and cost for all the engines that we will be developing,” Koei Saga, Toyota’s senior managing officer in charge of powertrain development, told Automotive News.

“We are spending more time concentrating on improving the basic performance of engines….that means we can maintain leadership in the market for a long time.”

One of the key elements of the motor makeover will be maximizing common parts like engine blocks and camshafts, as well as design elements like combustion cycle and valve timing, in order to spread costs across a large number of engines.

The ensuing cost savings will leave room in the budget for enhancements for specific vehicles that Toyota’s engineers refer to as kanzashi, the traditional ornamental hairpins worn by geisha.

Toyota’s kazanshi include technologies like turbochargers, direct injection, stop-start and exhaust gas recirculation systems.

“First, we have to improve the performance of the base engine itself, then on top of that we will be utilizing kanzashi as occasion demands,” Saga said. “Just like putting something beautiful on top of your hairdo, by using kanzashi through such things as turbocharging or downsizing, you can improve the performance of the engine.”

“Traditionally, when you add new kanzashi, that increases cost, and we struggled to absorb it and profit margin deteriorated. But by improving our design and bundling volume, in some cases we were are able to reduce costs by half.”

Aside from Kanzashi components, Toyota’s new engines will also feature Atkinson cycle combustion, expanded variable valve timing and higher compression ratios.

The new engine family debuted in April with the launch of the Japanese-market Toyota Passo’s 1.0-liter motor. In the near future, it is expected to spread to other models such as the redesigned Prius and next-generation Camry. A V6-replacing turbocharged and direct-injected four-cylinder is under consideration for the new Camry, although a final decision regarding the mill has not yet been made.

Amid reports of a launch delay for the next-generation Prius, Toyota has reportedly decided to offer two battery options and possibly an all-wheel-drive edition.

The battery packages are said to include nickel-metal hydride cells or a more expensive lithium-ion pack, powertrain development manager Koei Saga told Automotive News.

The company already utilizes the cheaper NiMH tech for its entry-level Prius, while the plug-in edition benefits from the higher power density of Li-ion chemistry. It is unclear if the latest comments are related to a Li-ion pack for a traditional hybrid model.

The executive also suggested the company is considering an all-wheel-drive model to sell alongside the current front-wheel-drive configurations. Such an offering has not yet been officially confirmed, however.

The development delay has been blamed on additional late-stage refinement to the gasoline engine and hybrid system to maximize the jump in fuel efficiency over the third-generation model. Rumors suggest mpg ratings — currently at 51/38 city/highway — may rise by 10 percent.

“I think we will come up with a fuel economy that will surprise everyone,” Saga said.

Volkswagen has officially confirmed that its new midsize SUV will be built in Chattanooga, Tennessee.

The announcement comes just days after the United Auto Workers detailed plans to establish a local branch in the city, enabling the union to formally recruit workers as it attempts to build a majority and receive official representation. The initial unionization move had been a source of contention between VW and state legislators, potentially threatening a $300 million incentive package aimed at securing the SUV production.

Significant expansion to the Chattanooga facility will be required for the company’s second US-built model, which will be built alongside the Passat. The new model is expected to require $900 million in total investment, including $600 million heading to US shores.

VW claims approximately 2,000 jobs will be created as the plant ramps up production. Several hundred of the new positions will be at a new research-and-development center, aimed at coordinating projects optimized for the US market.

“With the midsize SUV, the expansion of the Chattanooga plant and the new development center, the focus is on the wishes of the US customer,” said VW CEO Dr. Martin Winterkorn. “This is also a strong signal for the US as an industrial and automobile production location. The Volkswagen brand is going on the attack again in America.”

The new SUV will be a midsize model based on the CrossBlue concept that debuted in 2013. Three-row seating for seven passengers has been confirmed for the production model, reflecting the focus on the North American market, though additional specs remain unclear.

Federal prosecutors are reportedly preparing to charge General Motors with fraud over the bungled ignition-switch recall.

Reports of a federal criminal investigation surfaced just weeks after the company made its initial recall announcement. Prosecutors are said to be focusing on decade-old evidence of “misleading statements” to build their case, unnamed sources have told Reuters.

If the prosecutors decide to move forward with federal charges, they are expected to accuse the company of violating federal laws related to mail and wire fraud.

Fines have already been levied for failure to report the defect to the National Highway Traffic Safety Administration in a timely fashion. The current penalties, totaling into the tens of millions, could be overshadowed by a federal criminal settlement.

Analysts look to Toyota’s unintended-acceleration debacle as a potential parallel to GM’s current situation. The Japanese automaker paid a fine of less than $17 million in 2010 for failing to quickly disclose the defects, however federal prosecutors spent years building a separate criminal case that eventually squeezed the company for another $1.2 billion.

Federal charges, or lack thereof, could have an impact on the current legal battle GM has been fighting to maintain its liability shield against pre-bankruptcy claims. The company is also said to be facing separate criminal investigations at the state level.

Mercedes-Benz has committed to keeping the V12 alive, introducing a new range-topping two-door S-Class, the S65 AMG Coupe, that will succeed the CL65 Coupe.

As the name implies, the S65 AMG Coupe is essentially based on the four-door S65 AMG. Aside from the door reduction, it brings the three-point star onto the grille and opts for thinner horizontal taillights.

The new model features the same 6.0-liter V12 engine that can be found under the hood of the sedan and CL65 Coupe. Twin turbochargers help the mill produce 621 horsepower and 738 lb-ft of torque — output levels that still exceed many supercars.

Drivers can expect to get up to 60 mph from a standstill in four seconds flat, and eventually hits an electronically limited top speed of 186 mph. Despite the shared engine and comparable performance figures between the S65 AMG Coupe and its predecessor, the incoming model is significantly more efficient. EPA estimates have not been announced, but the coupe fetches a combined rating of 23.7 mpg in European cycles.

Despite the presumably hefty curb weight, Mercedes-Benz promises stellar performance in the corners. The coupe will be among the first US models to feature curve-tilting functionality, using active body control and surface-scan cameras to help the car “lean into bends.”

The company has not yet revealed pricing information for the S65 AMG Coupe, which will arrive later this year. For comparison, the sedan variant fetches $222,000.