Japanese automaker Mazda said the first production application of its new Skyactiv-G 1.3-liter direct-injection gasoline engine will be in the face-lifted Mazda Demio, due shortly in Japan. Mazda said the Skyactiv-G 1.3 returns just over 70 mpg on Japan’s 10-15-mode test cycle.

A larger 2.0 version of the Skyactiv-G engine, rated at 155 horsepower, will make its North American debut in the 2012 Mazda 3 late this year or early next. Mated to a six-speed automatic transmission, the 2.0 engine is expected to return 40 mpg on the highway. The Skyactiv-G 2.0 will also be offered next year in the new Mazda CX-5.

In response to a query from Inside Line, Mazda North America spokesman Jeremy Barnes on Wednesday said “we will not take — initially at least — the 1.3L engine” just announced for the Demio, which is sold in the U.S. and other overseas markets as the Mazda 2.

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TURIN, Italy — Fiat is getting fancy. The automaker has teamed up with fellow Italian brand powerhouse Gucci to unveil the 500 by Gucci, a special edition of the iconic Fiat 500.

Tricked out with distinctive Gucci elements, the car comes in two colors, glossy pearl (white) and black. Both sport Gucci’s signature green and red stripe, which runs along the exterior and also appears inside on the seats, gearshift, carpet and seatbelt. The brand’s interlocking GG logo jazzes up the hubcaps, while a cursive Gucci signature is splashed on the hatchback as well as the door post. One version even comes equipped with rear brake calipers in Gucci green.

The collaboration between two of Italy’s top brands marks the celebration of both the 150th anniversary of the unification of Italy and Gucci’s 90th anniversary.

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SANTA MONICA, Calif. — In a deft move intended to strike the heart of Honda Civic sales, Hyundai will unveil its future Elantra coupe late this fall at the 2011 Los Angeles Auto Show.

Expect powertrains in the new Elantra coupe to come straight from the sedan. All 2011 Elantra sedans are powered by a 1.8-liter four-cylinder generating 148 horsepower and 131 pound-feet of torque.

Hyundai is also likely to create an Elantra R-Spec in 2012. That coupe would be powered by the same 208-hp turbocharged engine already confirmed for a high-performance version of the Hyundai Veloster. The standard Veloster offers an optional dual-clutch automatic transmission for its normally aspirated 1.6-liter engine, so the six-speed DCT could find its way into the Elantra R-Spec as well. More importantly, it would give the turbocharged Elantra an option not offered by Honda’s popular Civic Si.

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Volkswagen plans to release a variety of models using plug-in hybrid technology in 2013 and 2014, the German automaker announced at the 32nd International Vienna Motor Symposium.

Although VW is keeping details close and has not revealed which models will be released, the company previously has displayed a Golf TwinDrive plug-in hybrid and an Audi A3 E-tron plug-in prototype. It also announced a year ago that it was preparing for plug-in versions of the Golf and Jetta.

“The electric car will impact the future of individual mobility in crucial ways — and Volkswagen is spearheading this technology. Over the mid-term, the plug-in hybrid offers great potential, because it combines the best of two worlds in one vehicle,” said VW Chairman Martin Winterkorn at the Vienna conference.

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