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Chrysler's new Phoenix V-6 engine shuts down three cylinders when less power is needed, improving fuel efficiency by 3 to 6 percent. The company recently opened three factories to begin producing the engines.

All three automakers plan to offer more "flex-fuel" vehicles that burn gas or E85 ethanol. They're all looking at so-called clean diesel engines, with Chrysler offering one in the 2009 Jeep Grand Cherokee

Much More Here:
How Detroit Will Reach 35 mpg | Autopia from Wired.com
 
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