The push by governments around the world for stricter emissions regulations for new cars has all carmakers, from mainstream makes like Toyota and GM all the way up to exclusive brands like Mercedes Benz and even Ferrari working on new methods to clean up their act. One trend we've already started to see is the downsizing of engines. Both Ford and GM, for example, are starting to place less emphasis on their big V8 engines in favor of more economical V6 engines, and this trend is being repeated at BMW and Mercedes Benz. Mercedes is developing new technologies to boost the output of its compact four-cylinder engine range – the Diesotto being the most recent development. While the Diesotto sits at the lower end of the engine spectrum, Autobild is reporting that Mercedes has cancelled plans for a future V12 engine codenamed M295 and will instead develop a new twin-turbocharged V8 powerplant.