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Ford is bringing its smallest engine to the U.S. in the race to meet stricter government fuel economy rules. The company says the 2014 Fiesta will be the first North American vehicle to get Ford's new 1-liter, three-cylinder EcoBoost engine when it goes on sale next year. The 1-liter has been sold in the European version of the Focus sedan since March.

Ever worry about getting caught by police using your cellphone while driving? That was not enough of a risk for one German driver, who had an entire office installed in his FORD Mondeo station wagon. Undercover highway police in southern Germany on Monday pulled over a 34-year-old IT specialist after he conducted an illegal passing maneuver and was going 80 miles per hour in a reduced 62-mile-per-hour zone on Germany's infamous super highway, the autobahn.

An estimated 250,000 vehicles were flooded, compounding an already-tight used-car market.

Chrysler is recalling more than 919,000 older-model Jeep SUVs worldwide because the air bags can inflate while people are driving them.

Hyundai and Kia overstated the gas mileage on most of their models from the past three years in an embarrassing blunder that could bring sanctions from the U.S. government and millions of dollars in payments to car owners.

Although most major automakers are working on self-driving systems, Google also has been pushing ahead with the technology...Mr. Torcellini took his hands off the steering wheel, lifted his foot from the accelerator, and the Lexus hybrid drove itself, following the curves of the freeway, speeding up to get out of another car’s blind spot, moving over slightly to stay well clear of a truck in the next lane, slowing when a car cut in front.

Volvo announced Hakan Samuelsson will take over as its new chief executive, replacing Stefan Jacoby.

U.S. retail sales rose in September as Americans bought more cars and gasoline, while a gauge of consumer spending pointed to stronger-than-expected economic growth in the third quarter.

The British team behind a project to build a 1,000-mph car have cleared a key hurdle with a successful test of the rocket they hope will push the vehicle well beyond the sound barrier.

General Motors Co. announced on Friday a big recall of Chevrolet, Pontiac and Saturn mid-size sedans to fix a transmission problem that could cause the cars to roll away after the driver has left the vehicle.