It's true, and it's 13,000 for each donee. Donor always pays the gift tax so becareful when giving car away as "gifts" for people you don't know. I would just sell it for a dollar if given away as a gift. If they ask both parties when they audit. If you said you sold it for a dollar, there is nothing the City can do about it.
http://www.irs.gov/businesses/small/article/0,,id=108139,00.html