Electric

Ariel, our favorite purveyors of minimalist motoring this side of a Se7en, are reportedly working on an all-new vehicle that won't be powered by a standard engine and would "break new ground in the same way that the Atom first did."

Chinese battery manufacturer BYD can now be mentioned in the same breath as Goldman Sachs: both have recently been given the blue-chip imprimatur by U.S. billionaire investor Warren Buffet. The Oracle of Omaha's MidAmerican Energy Holdings has bought a 10-percent stake in BYD for $230 million.

When it comes to increasing fuel economy, turbochargers are the replacement for displacement. The combination of highly efficient snails and smaller engines provides the power people expect, while reducing the overall weight of the vehicle. Like other automakers that have realized that forced induction is a suitable stop-gap for improving fuel economy, Mercedes-Benz is in the process of developing turbo'd engines that will proliferate throughout its lineup in the next two and a half years.

Thomas Weber, a Daimler board member in charge of research and development told Automotive News, "All our vehicles will have turbocharged engines in series production by the end of 2010 at the latest."

Click above for a high-res gallery of the Tiguan HyMotion

Last month, a major announcement was made regarding an effort between Nissan and Chrysler to share products. Specifically, Nissan will build a small car for Chrysler and receive a large truck in return. It seems as if the Pentastar brand could use some more help when it comes to offering the types of vehicles that the public wants as quickly as possible. To that end, Chrysler CEO Bob Nardelli says, "If we can have similar arrangements ...

Audi has been quietly going about the business of preparing its lineup for a green future, with cleaner and more efficient diesels in Europe, and oil-burners scheduled for the US in the near future. While the German automaker realizes diesel will be big in the next 10 years, it's also planning for life without emissions. Audi exec Rupert Stadler says the four-ringed automaker is primed to offer an electric vehicle in the next five to ten years.

Efficiency is a large stumbling block if you're looking for a way to replace gasoline. It's pretty hard to better such an exceptional fuel, and several alternatives show promise but are nagged by inefficiencies or cost, and usually both.