The head of the Environmental Protection Agency has downplayed the potential negative effect of falling gasoline prices on the agency’s fuel-efficiency targets.
As average prices at the pump continue to hold below $3 per gallon in the US market, many buyers are opting for crossovers and SUVs rather than small fuel-efficient cars. The trend is expected to pose a challenge for the industry as it works to more than double fleet-wide fuel efficiency in the next decade.

“I expect that we will continue to have more and more fuel-efficient vehicles, and people will still want them,” EPA administrator Gina McCarthy said at a recent event, as quoted by The Detroit News.

The government set an ambitious goal of 54.5 mpg by 2025, however average fuel economy of newly purchased vehicles appears to be stagnating due to the drop in fuel prices.

McCarthy argues that some buyers are currently choosing SUVs because of the looming winter, but the overall average is still up for 2014 as most buyers look for vehicles with better fuel efficiency. The agency is only expecting fleet-wide efficiency to jump by less than one percent to 24.2 mpg, however, for the 2014 model year.

Despite McCarthy’s optimism, the EPA and the National Highway Traffic Safety Administration could still revise their 2025 target after completing a review of current numbers and forecasted trends.

Ken Block has released the seventh video in his Gymkhana series, featuring a modified ’65 Ford Mustang.
Replacing his trusty rally-spec Fiesta, the new Mustang has been extensively upgraded with all-wheel drive and a Roush Yates V8 engine that produces 845 horsepower and 720 lb-ft of torque.

Block thrashes the ‘Hoonicorn’ around the streets of downtown Los Angeles, with additional obligatory runs on the city’s highway network, down the LA River culvert, through Chinatown and in the hills above the iconic Hollywood Sign.

The segment serves as another promotion for Block’s Hoonigan clothing line.

Cadillac has a home in New York. GM’s luxury brand has signed the rental agreement for their new headquarters, located in the 330 Hudson building in Hudson Square.

The report came late Friday, and according to the New York Times, the lease deal gives Cadillac the top two floors of the 16-story building. That’s 34,000 square feet, or approximately 42 Manhattan apartments.

Built in 1910, the limestone structure is located at the intersection of three trendy neighborhoods — SoHo, Greenwich Village, and Tribeca — known for their famous art galleries and fashion boutiques and film festivals. The building itself was a former warehouse with a stone and brick colonnade facade. The glass-enclosed addition where Cadillac will reside was a modern addition completed in 2013.

Cadillac boss Johan de Nysschen’s controversial relocation hopes to capitalize on New York’s thriving culture as a crossroads of art, business and commerce. De Nysschen famously relocated Infiniti headquarters to Hong Kong when he headed Nissan’s luxury brand. He told the Post, “New York is a natural hub of activity for luxury brands and global and international business,” adding, “How much that will aid us remains to be seen, but that’s the basic thinking behind it.”

Infiniti is presenting an imaginative future race car design as part of the upcoming LA Auto Show’s Design Challenge. Though purely a thought exercise, it’s a peek into what automakers are conjuring behind the closed walls of their design studios.

Each year the LA Auto Show, home show to America’s auto design nexus, invites automakers and their design studios to come up with futuristic takes on a common theme. For 2014, that theme is “Sensing the Future,” which focuses on human-machine connection because apparently even autonomous cars are not yet communicating with us on a telepathic level.

Infiniti is the first to reveal their submission, called the Synaptiq. It’s not so much a car as a pod that fits into a range of vehicles. The premise is a new motorsports triathalon called ARC, or Air, Rally and Circuit, taking place in 2029. Races are broken down into three parts: a Formula One-esque road course stretching between Los Angeles and Las Vegas, an off-road rally stage to the Grand Canyon, and an airborne leg guided by virtual pylons back to LA.

At each section, the driver’s Synaptiq fuselage is removed (or ejected) from each vehicle for transfer. Wouldn’t it be easier for the driver to hop from vehicle to vehicle? No, because the way you control the car is a “spinal lock” connection port that takes human-machine interface to the next level. The Synaptic S.U.I.T. (Symbiotic User Interface Technology) actually has a slot on the back. You can imagine the rest.

Other competitors in the Design Challenge include Honda, Acura, Mercedes, Nissan, Subaru, Volkswagen, Toyota’s Calty studio, Peterbilt, and Chinese newcomer automaker Qoros. The winner will be announced during the LA Auto Show next week.

A new report finds Volkswagen will expand the Golf lineup with a compact SUV.
Scheduled to arrive in 2018 at the earliest, the yet-unnamed off-roader will partially fill the void that will be left by the current Tiguan when a larger and more upscale second-generation model is introduced late next year. The SUV will be more capable than the average compact soft-roader but it will not be a hardcore off-roader, either.

Industry rumors indicate the SUV will share the bulk of its mechanical components with the eighth-generation Golf that engineers are in the early stages of developing. The next generation of Volkswagen’s 4Motion all-wheel drive system will be available at an extra cost on most trim levels, and a gasoline-electric plug-in hybrid drivetrain could round out the lineup later in the production run.

If the rumor turns out to be true, expect to hear more about the Golf-badged SUV over the coming years.

Déjà Vu
The idea of a Golf on stilts isn’t new in Wolfsburg. Volkswagen traveled to the 1989 edition of the Frankfurt Motor Show to introduce a concept car called Golf Montana. Essentially a second-gen Golf with a steel ladder frame and a raised suspension, the concept was surprisingly given the green light for production and after generating an overwhelmingly positive response from show-goers. Over 7,000 examples of the Golf Country (pictured) were produced by Steyr-Puch in Austria until the model was axed in 1991.

A leak has prematurely revealed the Audi Prologue concept ahead of its scheduled debut at the Los Angeles Motor Show that will open its doors next week.

The concept was penned under the guidance of Marc Lichte, who’s been leading Audi’s design team since February. The leaked sketches suggest the Prologue boasts a sharper rendition of the company’s trademarked Singleframe radiator grille and thin angular headlights that likely pack advanced matrix beam technology.

The Prologue features a fastback-like rear end accented by thick C-pillars and aggressive horizontal tail lamps. The coupe stretches 200 inches long, 76 inches wide and 54 inches tall, dimensions that make it about the same size as a standard-wheelbase A8.

Lichte explains the concept draws inspiration from key models in Audi history including the 90 quattro IMSA GTO, the original TT and the first-generation A8 that was launched in 1994.

Full details about the Audi Prologue will be published in the coming days. Stay tuned to Leftlane for live images of Audi’s latest concept straight from the show floor in L.A. starting next Wednesday.

What’s Next?
While the new look is expected to inspire nearly all future Audis, the L.A.-bound show car will specifically influence a new range-topping coupe that will fight head-to-head against the Mercedes-Benz S-Class Coupe. Set to land in 2017 at the earliest, the two-door will be offered with a long list of engine options including a twin-turbocharged V8 tuned to send over 600 horsepower to all four wheels.

Honda may be introducing a new open-top two-seater called the S1000. Based, on the S660 roadster, it could even be exported outside of Japan.

As the name suggests, the S1000 would be a 1.0L sports car carrying on the S-Series name, a designation not seen since the Honda S2000 ended production in 2009. The S-Series moniker has been used on Honda roadsters since the S500 began production in 1963, followed by the S600 and S800.

According to a report by Motoring.com.au, the S1000 would be based on the Honda S660 concept unveiled at the Tokyo Motor Show a year ago. Mugen, Honda’s in-house tuning arm, is developing the turbocharged engine, which has apparently already been fitted to a Civic prototype and is capable of 138hp.

Honda has already green-lit the S660 for production, but its mid-mounted 3-cylinder’s 660cc displacement and 63 horsepower are dictated by Japan’s kei car standards. On the other hand, it also has a curb weight of under 2000 lbs. The 1-liter combo could put it in the same neighborhood as the 1.5L Mazda MX-5 designated for non-US markets.

If produced, the S1000 would debut sometime in 2016.

Image by Ben Hsu.

Despite a swirl of rumors, a rotary engine Mazda sports car is not in the work. Hopes for an RX-8 or RX-7 successor were dashed by the Mazda CEO himself.

Since the demise of the Mazda RX-8 in 2012, fans of the piston-less motor have been clamoring for a revival. Rumors came and went, with the latest round in August of 2014 promising two sports cars, a revived RX-7 and a range topping RX-9, to debut in 2017. The launch would have coincided with the 50th anniversary of Mazda’s rotary engine, which first appeared on the 1967 Mazda Cosmo Sport.

However, as Automotive News reports, CEO Masamichi Kogai said there are “no plans to revive the discontinued RX sports car series.” Instead, the comparatively undersized Hiroshima-based automaker is focusing its SkyActiv engineering philosophy, which emphasizes lightness and technology for fuel economy and performance benefits.

Since Mazda’s split from Ford in 2010, Mazda has been freed from platform-sharing restrictions. It has since embarked on a revamp of its entire lineup, leading with all-new CX-5, Mazda3, and Mazda6 models that have reinvigorated the brand. An onslaught of new products like the MX-5, Mazda2 and CX-3 are nearing production as well.

Sales are up even as incentives and fleet sales are being reduced. So while Kogai believes the RX is a vital part of Mazda heritage, he cannot devote precious resources to a two-sports car lineup. Instead, discipline and focus on improving the models across the board are key to maintaining the company’s upward trajectory. The company plans to release a new generation of SkyActive 2.0 engines by 2020 that could see a 30 percent improvement in fuel efficiency thanks to homogeneous charge compression ignition technology.

“It’s a unique technology that only Mazda has, and I don’t think we should allow the flame to go out,” Kogai is quoted as saying. “If you increase the number of segments,” he added, “that will prevent us from developing truly good products.” However, Kogai maintains that the rotary engine is still being improved to keep it fresh in case the time for an RX revival comes.

Audi has introduced the updated 2015 A1 and S1 subcompact hatchbacks. Based on the Volkswagen Polo, the A1 sits at the very bottom of Audi’s European lineup while the S1 is positioned higher up as a performance-focused offering.
For 2015, both models get a minutely updated front fascia with a sharper rendition of Audi’s traditional Singleframe radiator grille, new headlights and a revised lower bumper. A selection of new alloy wheel designs ranging from 15- to 18-inches and additional paint colors round out the exterior updates.

The interior upgrades are similarly minor and largely limited to a new infotainment system, new customization options and the availability of a wi-fi hotspot.

The big news for 2015 is found under the hood, where the updated A1 is the first Audi to be offered with a three-cylinder engine. The entry-level mill is a 1.0-liter TFSI unit that makes 95 horsepower, and buyers who prefer diesel can order a 1.4-liter TDI three-banger that makes 90 horsepower. The 1.4-liter TDI is the mileage champ of the A1 lineup, returning nearly 70 mpg in a mixed European cycle.

The A1 is also available with a wide range of gasoline- and diesel-burning four-cylinder engines. Most models are offered with either a manual transmission or a seven-speed dual-clutch DSG unit controlled by shift paddles.

The range-topping S1 carries on with only minor mechanical modifications, meaning it retains a 2.0-liter TFSI four-cylinder engine rated at 231 horsepower and 272 lb-ft. of torque. Fitted with Audi’s quattro all-wheel drive system, the S1 is capable of reaching 62 mph from a stop in 5.8 seconds before topping out at 155 mph.

The updated Audi A1 is scheduled to go on sale across Europe over the coming weeks. Pricing information will be published closer to its on-sale date.

Jeep has confirmed it will expand its lineup with a range-topping three-row crossover in the near future.

The crossover will likely be called either Wagoneer or Grand Wagoneer, nameplates used on a series of full-size Jeeps built from the early 1960s to the early 1990s. The off-roader’s exact dimensions are not known but Jeep has hinted that it will ride on a brand new platform that will also underpin new models built by Dodge, Chrysler and possibly even Fiat.

The Wagoneer will offer space for up to seven passengers in its biggest configuration. It will boast a well-appointed cockpit with a long list of high-tech features in order to fight head-to-head against similarly-positioned models from European automakers, notably the iconic Land Rover Range Rover.

“Jeep and Range Rover have historically competed. Range Rover is the other pure SUV brand in the world, so they will always be our competitors,” explained Jeep CEO Mike Manley in an interview with English magazine Autocar.

The Wagoneer is expected to considerably boost Jeep sales around the globe. The company is on track to sell over a million cars in the United States this year, and it is hoping that a slew of new products and an increased effort on international markets will allow it to nearly double that figure by 2018.

When to expect the Wagoneer is up in the air. Some sources say it will bow at a major auto show in late 2015 and go on sale shortly after, while others believe it won’t be introduced until 2017 at the earliest.