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We already mentioned PSA's plans to downsize engines in an effort to improve fuel efficiency. The French company will showcase the progress its making during PREDIT (National Program for Terrestrial Transport Innovation), which is taking place this week in Paris. PSA will show a prototype co-developed with Valeo and IFP (the teams behind the low-carbon Smart). The prototype is a Citroën C2 with a two-cylinder engine, 8 valves and a mild-hybrid system with Stop&Start and regenerative bra

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Ok, you've got a small, fuel-efficient (more than 60 mpg Imperial) hatchback. It's not a high-performance sports car, but it will get you to 62 mph in under 10 seconds. If you're under 25, you get a free year of insurance on the sucker. It costs £13,400, but for a limited time, the price after cash back offers is £10,995. Do you buy?

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