Th!nk Ox Concept Car All Electric, Mostly Recycled

How green can a car really get? What about one which features a lot of recycled materials as part of the design? That's the idea behind the Th!nk Ox concept car, unveiled earlier this year at the Geneva International Motor Show.

What makes the Th!nk Ox interesting as a concept is that 95% of the interior is made of recyclable materials. Those materials aren't specifically spelled out, but I have to imagine you won't grow a third eye while you are driving this car.

The Ox, built on an EV platform similar to other Th!nk EVs, is a fully electric, five seater passenger vehicle. Design touches include a solar panel on the roof to either keep the car cooled while turned off or perhaps power the sound system, an upright tailgate which tries to provide more luggage space, large interior glass surfaces and in-built computer screens to provide all necessary systems information.

The designers of this concept vehicle see it being capable of going 0-60 in under 8.5 seconds and having a maximum speed of under 85 MPH. Driving ranges are said to be around 125 miles combined highway and city summer driving and 155 miles for strict city touring. A sports version of the Ox is seen going even faster and further.

2010 Ford Mustang To Debut at LA Auto Show

Earlier today, when Ford announced plans to counter its largest ever quarterly loss, we also learned the 2010 Ford Mustang would be revealed to pumping bass and epileptic-unfriendly lights at the 2008 LA Auto Show in November. We know the car arrives in showrooms early next year, and what's a new car without the lasers and dry ice of an auto show unveiling? But why LA and not Detroit?

Our sources tell us the reason the Giugiaro concept-based 'Stang is coming to LA is partly due to the lucrative convertible market represented by sunny California, but also because it offers Ford the opportunity to become the star of the show.

Despite being located in the civilized world, LA is still eclipsed by Detroit's NAIAS, which sees a huge number of new models unveiled each year. By unveiling the Mustang in LA, Ford hopes to guarantee more coverage.

Surprise! Millionaires can still afford Lambos, profits rise

It seems that well-to-do individuals who grew up staring at Countach posters on their bedroom walls are still finding a way to fulfill their childhood fantasies. Both sales and profits are up at Lamborghini, with most of the increases coming from emerging markets, including the Middle East, China and Hong Kong. Lamborghini CEO Stephan Winkelmann believes that the key to its recent sales successes is its policy of producing fewer vehicles than it believes it can sell, thereby keeping demand high. Winkelmann also noted that costs go down as production goes up, a further boon to increased profitability.

With Lambo's latest Gallardo LP560-4 about to hit its 114 dealerships, the second half of the year is already shaping up quite nicely. Ridiculously expensive options with high profit margins like $19,000 carbon-ceramic brakes are sure to help the bottom line too.

Chrysler offering even more incentives to close out July

The automotive sales sector is in a major state of flux as consumers continue to run from SUVs and pickup trucks into smaller, more fuel efficient cars. One manufacturer hit especially hard by this transition is Chrysler, a company that recently posted the worst fleet average fuel economy numbers of all major automakers in the U.S. due to its truck-heavy lineup. Still, the automaker has built up a large supply of Chrysler, Dodge and Jeep utility vehicles that they have got to get off dealer lots somehow. To ease consumers into the fuel-thirsy utes, Chrysler has introduced new incentives of zero-percent financing for 72 months on the 2008 Dodge Durango, Chrysler Aspen and Jeep Grand Cherokee and Commander.

While the lack of any financing charges will certainly impact the bottom line, it is nothing compared to the losses the automaker has been hit with over its past lease deals. In fact, truck and SUV residuals are so bad these days that Chrysler Financial has gone so far as to completely cut leasing out of its available portfolio starting August 1. The financing deals announced today are scheduled to continue through Thursday, July 31.

London 2008: Renaultsport Megane R26.R

While most of our recent hot hatch affection has been aimed at the Ford Focus RS, Renault brought its own racy three-door to the London Motor Show party, and now we're torn. Admittedly, the Focus RS is easily the more suitable day-to-day driver – it's got a full interior and air conditioning -- but the Renaultsport Megane R26.R has all the kit for a serious track-day assault. Hell, it even has two Rs in its name.

With the new Megane slated to appear at this year's Paris Motor Show, Renault wanted to give the current model a fitting send off. To that end, it took the existing Megane F1 Team R26, left the engine, gearbox and limited slip differential intact, modified the suspension and hacked off 271 pounds from its curb weight. The diet included the removal of the rear seats, passenger side airbag, climate control, fog lamps, headlight washers, rear windscreen wiper and the majority of the soundproofing material. In exchange, the R26.R received a carbon fiber hood, polycarbonate quarter and rear windows and a titanium exhaust.

Inside, the Renaultsport hatch makes the RS look positively pedestrian, with a set of carbon fiber Sabelt seats, six-point harnesses, leather and suede swathed steering wheel and gear knob, and an optional four-point roll cage. While output remains the same, at 230 hp and 229 lb.-ft. of torque, the stripped R26.R lapped the Nurburgring in 8:17 – a new lap record for a front wheel drive production car.

Only 450 examples will be made available when sales begin in the UK, France, Germany, Switzerland and Spain this October. And unlike the Chevy Camaro, Renault released a video of the R.26R doing it's thing around the 'Ring... three seconds faster. Check it, along with the press release, below the fold.

No new MINIs for '08? Manufacturers tapped, dealers sold out

If you were planning on hitting one of the 82 U.S. MINI dealers to get your hands on a fuel-efficient Cooper or Clubman, it looks like you'll need to look at plan B. Skyrocketing fuel prices has lifted demand of the little British icons to the point that, with the except of pre-orders, all 2008 models are pretty much sold out. The MINI's cute looks and thrifty petrol-sipping discipline have made the retro hatch more attractive than ever. Year over year sales increases of 39%, 52%, and 24% from April-June have all but wiped clean the MINI's already tight inventory.

Although sales really picked up in April, the MINI has been on fire all year, as the 26,400 MINIs sold in the first half of 2008 represents a 33.6% increase over the same sales period in 2007. And thanks to the MINI's already tight world-wide demand, the BMW-owned automaker can only up US shipments by 2-3k units for the rest of the year.

Team MINI wants to keep its new-found fortune coming, too, as it plans to increase its dealer count to 95 stores by 2011. The British automaker will also introduce a diesel MINI once it can pass emissions in all 50 states.

Chevrolet Camaro SS laps the 'Ring in... 8:20

In this automotive day and age, any vehicle that has even a trace amount of performance in its DNA has to make the rounds around the Nurburgring. The new Chevy Camaro SS isn't exempt. So after GM revealed the Camaro on Monday, one of the scribes at InsideLine ran up to an engineer to find out what kind of time the Camaro put down at the Nordschleife. According to Doug Houlihan, GM's chief engineer for global rear-wheel-drive vehicles, the Camaro SS ran the 'Ring in 8:20.

To put that into perspective, the recently released 2008 Cobalt SS did the deed in 8:22, along with the BMW E46 M3 and the last generation BMW M Coupe, followed by the Lotus Exige S and Porsche Cayman S at 8:25.

Ed Welburn, GM'S veep of global design, concedes that the Camaro's shape is merely adequate from an aerodynamic standpoint, with a coefficient of drag on the SS of 0.35 and on the LS/LT models of 0.36 – largely a result of the recessed headlamps and full-width grille.

Houlihan went on to say that their time at the 'Ring allowed them to dial in the steering response and suspension settings, and that the StabiliTrak traction control system on the Camaro will be the best GM can offer. Settings on the SS model allow drivers to choose between track and performance modes, along with completely disabling the system. A launch control feature will also be available on the

London 2008: Lightning GT EV in the flesh

Remember the Lightning GT? We told you about this all-electric supercar a few months ago, and it popped up today in person at the 2008 British Motor Show in London. That officially moves it one step away from the pure vaporware it was yesterday, which is a good thing since we're eager to see the carbon fiber-bodied Lightning actually move under its own power someday. That power will be provided by the same Altairnano NanoSafe batteries used by the Phoenix SUT, though churning out the equivalent of 700bhp through four electric motors in this case. Those motors are also the same PML wheel motors used in the 640-hp electric MINI, so they should be able to handle the 700bhp Lightning. There's also regenerative braking, as well as pretty much every standard conveyance of luxury you would find in a normal supercar including air conditioning, sat nav, full leather, etc. Its maker is claiming a 4.0-second charge to 60 mph for the Lightning, but we'd also like to know what type of range they're expecting in such a positively charged coupe. Unfortunately, details like that and the Lightning GT's price are still pretty scarce, though as before, they are accepting £15,000 deposits. At least it's no longer vapor.

2010 Chevy Camaro - Official Details and Images

You've waited long enough, so let's dispense with the pleasantries and get right down to the hard facts.

• Three models - LS, LT, SS
• LS and LT come with 3.6L direct-inject V6 (300 hp/273 lb-ft)
• SS six-speed manual comes with 6.2L LS3 V8 (422 hp/408 lb-ft)
• SS six-speed automatic comes with new 6.2L L99 V8 (400 hp/395 ft-lb) and Active Fuel Management
• 3.6L DI V6 gets 26 mpg highway
• 6.2L V8 with automatic gets 23 mpg highway
• RS appearance package available on LT and SS (includes HID headlamps with integrated halo rings, spoiler, specific taillamps and 20-inch wheels)
• Front and rear independent suspension
• FE2 suspension for LS and LT, sportier FE3 for SS
• Four-wheel disc ABS standard, SS gets four-piston Brembo calipers
• SS model gets adjustable Competitive/Sport mode for stability control and Launch Control on manual models
• Available 18-,19- and 20-inch wheels

You can read Chevy's full press release after the jump and browse the official, full-size image collection in the gallery below. Stay tuned for our post of live coverage from our team on the ground.

Spy Shots: 2009 Acura TL in the buff

The 2009 Acura TL has been spied enough times to rival the Chevrolet Camaro and Nissan GT-R, and even though Acura has already released a teaser of the TL ahead of its official launch, the overly airbrushed glamour shot doesn't accurately reflect what the TL will look like in the flesh.

Our new friend Dariusz came across a handful of images of the TL hanging out in a parking lot, with only the badge on the bonnet and boot obscured by tape and the steering wheel cloaked in a towel. Check the gallery to get a detailed glimpse of the new TL and check back next month for our First Drive.

Honda cuts Odyssey and Pilot production; makes room for more Civics

Honda has got to be happy that it has a hot selling compact car to take some of the pain out of the slowing minivan and SUV markets. Hurt by the sky-high price of gasoline, both the Odyssey and Pilot, both recently redesigned, are sitting on dealers lots longer than Honda would like. In order to match production with consumer demand, Honda will close its plant in Lincoln, Alabama for two days next month and cut second shift production at the plant every Friday in August through October. Displaced workers can choose to take either unpaid time off or use paid vacation leave. Some of that unused capacity will be taken up by the Ridgeline, which will now be assembled at the Lincoln plant instead of in Ontario where it is currently being built.

The Civic, on the other hand, will see its production boosted at the East Liberty, Ohio plant and in Alliston, Ontario, where capacity will be available due to the Ridgeline's departure. Score another point for Honda's modular manufacturing techniques.

Volkswagen unveiling two-door Elise fighter in LA, new sports car

Over the past five years, Volkswagen has continued to tease us with sports car concepts that never seem to come to fruition. Back in 2003, VW unveiled the Concept R in Frankfurt to critical acclaim and two years later, the wraps came off the EcoRacer, proving that the automaker was still kicking around the idea of a lightweight, affordable roadster for the masses.

In the interim, VW had two similar concepts that never left the studio, but when the Los Angeles Auto Show rolls along later this year, a new mid-engine coupe will be revealed, and this one actually has a shot at production.

According to Autocar, this newest concept aims to be a budget alternative to the Lotus Elise, balancing performance and fuel economy in a low-cost package. Sources suggest that the coupe will feature either a 168 hp, 1.4-liter TSI gasoline engine or a 125 hp, 1.6-liter TDI mounted amidships and sending power to the rear wheels via a seven speed DSG gearbox. If and when the production version debuts in 2011, the coupe's curb weight is pegged at just over 2,200 pounds, allowing it to run to 60 in under seven seconds while still returning over 55 mpg.

If the project is given the green light, the same architecture that underpins the VW variant could form he basis for the oft-rumored and continually denied Audi R4. And with Porsche's stake in V-Dub, that means a 914 successor is just a badge and prayer away.

2008 Audi Q7 3.6 Premium Review

Audi is renowned for its automobiles and quattro AWD system. In 2005, the company jumped on the SUV bandwagon by introducing the Q7, a boldly styled and massively sized vehicle that immediately turned a lot of heads.

A couple of weeks ago, I was handed the keys to a V6-powered 3.6 S Line model. Let me tell you right off the bat that the Q7 is comprehensively equipped and very sophisticated as far as premium SUVs go. Pretty much everything is included, though navigation is optional.Massive
The front grille of the Audi Q7 must be quite intimidating for other drivers; they get out of the way as soon as you approach behind them, even if passing is not what you intend to do. Is it really what Audi designers were looking to create? One thing's for sure: the Q7 rises above the crowd with its massive, commanding presence.

Due to the tall ride height (20-inch wheels in S Line trim), the automaker had the wise idea to offer a Convenience Package with advanced rearview camera. The latter is so perfectly positioned and easy to use that it's by far one of the best I've ever sampled. You can back up into a tight spot and correctly align the vehicle. The large outside mirrors further improve all-around visibility.

Artificially limited interior
The power door locks and power-opening hatch facilitate access to the cargo area. It's a good thing because the high threshold makes loading items more difficult. Of course, cargo capacity will vary depending on the number of passengers. If you need to carry seven people, you'd be wise to take the cargo cover off before leaving the house because there's no place to store it inside the vehicle. How awkward! As a last resort, you can keep it between the first- and second-row occupants. When all seats are occupied, needless to say that room for your luggage becomes quite limited.

Ford brings 2010 Mustang out to play at Road America

Just as photos of the production version of the Camaro popped up on the web last week ahead of tomorrow's unveiling, Ford decided to trot out the 2010 Mustang this weekend. Unlike the fully-revealed Camaro, the '10 Mustang remained heavily camouflaged as it acted as the pace car for the Kohler International Challenge vintage race at Road America. The prototype 'Stang lead a plethora of ponies from throughout the nameplate's lineage around the natural terrain course at Elkhart Lake, Wisconsin. The Saturday Mustang Corral also was treated as a celebration of the 25th anniversary of the Mustang GTP that won in its debut race at Road America. We won't be seeing the updated Mustang in its birthday suit until Ford drives it onstage at the Los Angeles Auto Show in November. In the meantime, you can check out the photos that Ford took of this event in the gallery below.

Transformers Corvette concept shows some tush

Someone slipped Jalopnik a new pair of shots of the mysterious Corvette concept that's appearing in next year's Transformers sequel. So far, we've seen good views of the car from the front and side, but rear-end shots had yet to surface. Well, that's over. The concept -- now a confirmed product of the GM Design studios (note the plate in back), has large ducts in back that mimic the openings in front and presumably also hide the car's taillamps. Four big centrally-mounted exhaust outlets poke through the bodywork as well. Frankly, the rear view is the car's least appealing, with that chunky boattail mixed in with all those sharp angles. There's also a new detail shot of the front quarter, which focuses on that very traditional Corvette fender shape. Is it just a movie character or also a concept that GM's going to drop on us somewhere along the line? Your guess is as good as ours, and the trickle of spy shots is probably far from over.

Seriously? Kiss my Astra?

Need a new car? If you're the Saturn Astra is on your shopping list, be wary of saliva spots... and while you're at it, pucker up. GM is running a Saturn "Kiss My Astra" contest, in which entrants are directed to capture their adventures in Saturn smooching on camera and upload them to the I M Saturn website. There, the online community of Saturn fans (we know, we were surprised, too) will judge the photos and declare a winner in September. The prize is a Saturn Astra XR. You're free to make out with any Astra you like, even your neighbor's, though you might officially become the neighborhood weirdo if people catch you locking lips with their ride. GM's Bob Lutz demonstrates his man-car love technique in the enclosed galery. Somebody turn a hose on this guy.

$85k Gibbs aquatic car could be built in Auburn Hills, MI

Gibbs Technologies, makers of vehicles like the Aquada seen above, has managed to snag tax breaks from both the state of Michigan and the city of Auburn Hills to open its world headquarters near Detroit, the U.S. capitol for automakers. While we're sure that Michigan's Oakland County is happy to see Gibbs' investment in the area and the additional jobs it'll bring along with it, one must wonder just how many $85,000 aquatic vehicles the company plans to sell to sustain itself. Though it's headquartering itself in the Detroit area, manufacturing may be done elsewhere. Michigan is still reportedly in the running, but we'd imagine a less seasonal climate may prove beneficial for the research, development and testing of its upcoming amphibious line of vehicles.

Rumormill: 350 hp Volvo C30 R in the works

Volvo gave its C30 hatchback a pretty aggressive look when it introduced the R-Design package, but unfortunately none of that sportiness made its way beneath the hood. Adding some show to the go, Volvo has reportedly created a C30 prototype fitted with a turbocharged inline-5 pumping out 350 horsepower using the Ford Focus RS engine block as a base. Best of all, it would be able fully put down all that power combined with Volvo's AWD system, unlike the FWD system on the Focus RS. Unfortunately, Volvo has no current plans to bring the car to production, and with high gas prices and upcoming fuel consumption regulations, it would be tough to convince them otherwise.

2008 Mercedes SLK55 AMG

It sits there, all tension and sinew, ready to pounce on lesser cars. Start it up and it barks with a clear V8 voice that thumps off the neighbor's house, setting them discreetly peeking from behind their lace curtains. This is an SLK? Oh yeah. No longer a blocky Benz with dwarfism, the SLK55 AMG ripples with muscle and delivers speed like a spin kick to the temple. A bad-ass Mercedes, indeed.

Eaton tapped to produce superchargers for Audi

Audi is using American supercharging muscle to give its new 3.0 liter TFSI V6 the desired wallop. Eaton Corporation has been enlisted by Ingolstadt to supply positive-displacement, Roots-type blowers that will work with direct injection to deliver 290 horsepower and fat, responsive torque down low on the tach. Roots blowers aren't anything new, but Eaton has refined the design with its latest Twin Vortices Series units. The TVS units add a fourth lobe to the rotors, and crank up the twist to 160 degrees for maximizing the amount of atmosphere the blower can pump out. Jettisonning turbochargers may help packaging when the V6 is crammed into the S4's engine bay, as well as reducing complexity by simplifying intake plumbing. 310 lb/ft of torque at 2,500 rpm will put a grin on anyone's face, and we'd expect to see this engine proliferate into many Audi engine bays. Press Release after the jump.

Toyota to roll out GeNext Corolla, Fortuner

With an aim to increase its presence in the fast-growing Indian automobile market, Toyota Motor Corporation (TKC) plans to launch an array of new vehicles, and will roll out its next-generation Corolla sedan and new compact offroader Fortuner this year.

“We aim to become a full-range car company in the next few years, and, realistically, it’s a big task. We are finalising plans to introduce several new vehicles from the our stable, aiming a much higher market share in India than the current 3%,” said

Toyota’s newly appointed India head Hiroshi Nakagawa. “The new vehicles will be both imported and locally manufactured at our Bangalore facility,” he added.

The company is looking at products across the segments, including the luxury marquee Lexus and compact car Diahatsu, that could hit the market in the next few years. “We are in the final lap of bringing in new vehicles in the premium segment, the volume generating small-car segment will be rolled out sometime in 2010,” Mr Nakagawa said.

Priced in Rs 10-14-lakh range, the new Corolla will be pitted against the newly launched Volkswagen Jetta and Honda Civic. Fortuner, in the price band of Rs 15-19 lakh, will compete with Maruti’s Grand Vitara, Honda CRV, Ford Endeavour and GM’s Captiva.
Toyota chief said he was not too worried about the negative impact of rising inflation and galloping fuel prices. “We are closely watching the prevailing low sentiment in the auto market, but are bullish on the potential of the Indian market,” Mr Nakagawa said.

BMW revises sales target by 40%

Enthused by the response from Indian luxury car buyers, Germany's BMW has upped its sales target in the country for the calendar year 2008 by 40 per cent to 2,800 units. Of these, 2,200 cars will be rolled out from the company's assembly plant near Chennai, while the remaining will be imported from Munich, the premium car maker's global head quarters.

Should BMW achieve its sales target, it would grow over last year's sales by 102 per cent. BMW's optimism comes at a time when the passenger car market in India is worrying about ending up with a single digit growth in the 2008-09 financial year.

The company measuring against its own stringent standards, believes that it has done better than expectation in India so far. While the sales target for 2007 was 1,000 cars, the Indian operations of BMW closed the year with sales of 1,387 luxury vehicles.

David Panton, senior vice-president, Asia-Pacific and president, South Africa, said "This is no small revision for a company like BMW", which prices its cars between Rs 27,00,000 (320i model) and Rs 1.31 crore (M6 convertible).

The company's assembly plant at Mahindra World City, near Chennai can roll out 3,000 cars a year. "This capacity should be enough for our sales target in 2008 and 2009. In any case the 3,000 cars-a-year capacity is on a single shift basis," said Panton. Revision of the current year's target by BMW is in response to the mid-year review of its performance and outlook for the rest of year.

Interestingly, BMW's upward revision of target comes at a time when the Indian car market is not in the best of its form. The domestic passenger vehicle market, after closing 2007-08 with a growth of 12 per cent, is in the midst of major price increases due to rise input costs. The industry is also hit badly by the spiralling oil prices.

The luxury car market, which is limited to a few thousand units in India, is clearly hotting up. This market is currently dominated by BMW and Daimler's Mercedes. Another German luxury marquee Audi, part of the Volkswagen Group, is also making its presence felt in India.

Pics Aplenty: 2009 Mazda6

On the eve of our Mazda6 review, the self-declared Zoom-Zoom brand has offered up 133 images of its newest sedan for our perusal. Want some pretty action shots? There are almost 20 including the one above. What about the folding rear seats? Not only do they give us step-by-step shots of the back seat action (remove mind from gutter), they've also shown us how the pass-through can accommodate both a snowboard and a rug. Ingenious. How about the key? They've got it covered... in triplicate. The starter button? Done. Twice. Obligatory "golf-bag-in-trunk" shot? Check. And while we originally planned to leave out the massive pic of an ABS light set against a totally black background, we thought better of it, just because it was ridiculous.
Enjoy the gallery, and be sure to check out the pricing details and technical tidbits before you come back tomorrow to read our review of the 2009 Mazda6.

Russo and Steele to auction off rare 1971 Lamborghini Miura SV/J

Most car enthusiasts know about the Lamborghini Miura, one of the most beautiful and desirable cars from the '60s and '70s, but few know about the one-off Miura Jota and subsequent SV/J models. The Jota was built in 1970 as an experimental car to test new ideas for the upcoming Miura SV. It featured a lightweight body with extra vents, a split sump engine (implemented on later SV models), "Megaphono" exhaust pipes, and a bevy of bespoke features. After the car was finished, it was sold to a loyal customer. Unfortunately, the Jota was involved in an accident and was completely destroyed when it burned to the ground. However, when several of Lamborghini's customers heard about the car, they asked if they could buy one of their own. Lamborghini decided not to officially build a production Jota, but they did offer conversions based on the SV model. The Lamborghini Registry lists only six "works" SV/J models, all featuring the Jota bodywork. The one seen here is chassis number 4892, and it will be auctioned off at the upcoming Russo and Steele classic car auction in Monterey. It's tough to tell what the car will go for since the SV/J models rarely ever change hands, but you can bet it won't be a paltry sum.

Goodguys Rod & Custom names 2008 Street Machine of the Year

Every year, hot rodders from around the country gather for a huge custom car show, swap meet, and a night of drag racing put on by the Goodguys Rod & Custom Association. For many, it's a weekend of fun, but for others it's the chance to be named the Street Machine of the Year. The winner of the prestigious award this year went to Erv Roller's 1969 Chevy Camaro known as "RAZOR", built by the Ring Bros. of Spring Green, WI. If the Ring Bros. sound familiar, it might be because they built the Reactor Mustang, the car that won the award last year. It's the first time in the competition's 14 year history that the same builder has won the award two years in a row. Follow the jump to read more about Erv Roller's Camaro and how it came to be.

Formula Drift announces World Championship of drifting

It always seems a bit presumptuous when a "world champion" is declared for a sporting event played in America. After all, other countries have leagues for baseball, basketball, football, etc. Formula Drift, the most well known drifting association in the United States, isn't about to declare world superiority in the art of maneuvering a car sideways through a course, but it does want to find out who's the best. Partnering with Red Bull Energy Drink, Formula Drift will be bringing together the best drifters from around the world to compete head to head in one single event. The competition will be held in November on the docks in Long Beach, CA and will feature a purpose-built course that will test the limits of each driver's skills.

AM General to produce Standard Taxi cabs?

It sure ain't pretty, though beauty, in this case, is likely in the eye of the beholder. A few years back, a new take on the taxi was provided by Standard Taxi, a company based in Troy, Michigan. The design for the purpose-built people hauler uses GM running gear and is able to haul four passengers in relative comfort. We hadn't heard a peep from the company until today when we learned that Standard is now working on negotiations with AM General to build the vehicle in its plant in Mishawaka, Indiana, where AM General builds the Hummer H2 SUV and SUT. So far, no announcements have been made regarding whether or not the plant would continue working full-time in the face of lagging Hummer sales, though we imagine that plenty of excess capacity is available. According to AM General, the deal would in no way impact the assembly of military Hummer models.

We can't say whether a production version of the Standard Taxi would feature the pushrod 4.3-liter V6 that the concept had underhood, though there are plenty of options from the GM parts-bin from which to pilfer. A Standard Taxi equipped with GM's 2-Mode hybrid system could prove to be extremely well-suited for taxi duty in some of the world's toughest environments.

Ford moving to three-year redesigns to keep things fresh

Back when it was virtually guaranteed 20% US market share, Ford would redesign its vehicles every five or more years. The Ford Ranger, Focus, and Crown Victoria changed even slower, with mostly only new lights and grilles. When competitive pressures started to put the Blue Oval into an anaconda death grip, that once guaranteed share began to shrink. To battle those competitive forces, Ford is looking to do a major redesign on its vehicles every three years from now on. Ford design director Peter Horbury told Automotive News that minor styling changes just aren't effective, and that future redesigns will include changes to everything but the doors, roof, and glass. That leaves bumpers, hoods, trunks, lights, quarter panels and front and rear facias as some of the items that can be refreshed in a much more timely fashion.

Horbury claims the Dearborn, MI automaker listened to the press with regard to styling changes, which emboldens us to ask for more. We'd like a twin-turbo four-pot Mustang, a plug-in euro Focus, a 40 mpg F-150, a seat on the board, and free Mondeos for all.

UK to get updated RX-8 starting in late August

Buyers in the U.K. are about to get their first crack at the revised 2009 Mazda RX-8, as the quad-door sportscar officially goes on sale in late August. All RX-8's destined for the U.K. will get the full body-kit that's optional in other markets. We've already seen all the images of the only rotary-powered mass market car in the world that we can stand, so lets move on to what's changed under the skin. Shorter final drive gearing combined with a steeper (numerically lower) sixth gear will allow the high-strung engine to reach its power-band earlier in gears one through five while still maintaining reasonable revs when cruising in sixth. New Recaro sport seats spice up the cabin and 19-inch rims with rotor-shaped spokes add some flair to the exterior.

Though power levels remain unchanged, the Renesis rotary engine sees minor revisions as well, with improved cooling as one main feature. Also updated are the oil metering pump -- all rotary engines ingest oil during normal operation -- and computer software which limits high-speed operation until the velvety-smooth powerplant has reached a proper operating temperature, likely to improve reliability somewhat. All in all, the '09 update of the sports coupe is pretty thorough, though the result is still instantly recognizable as an RX-8.

Ford considering four-cylinder EcoBoost for F150

According to sources speaking with Pickuptrucks.com, Ford is considering offering an EcoBoost four-cylinder engine on its F-150 pickup in 2013. The boosted mill is expected to displace around 2.5-liters, produce 260 hp and 300 lb.-ft. of torque, and would only be available on the two-door Regular Cab F-150 4x2 and 4x4.

Ford's rationale for equipping its workaday pickup with a turbo'd four is partially due to the rising cost of gasoline, but is primarily fueled by new CAFE regulations that will require light trucks to average 28.6 mpg by 2015. Ford has already decided to drop its 4.2-liter V6 for the 2009 model year, only offering the 4.6-liter V8, which produces more power and more torque, while still offering similar fuel economy.

The EcoBoost range of engines are likely to find their way into several different models across Ford's line up, and according to Ford's director of powertrain research, Dan Kapp, EcoBoost engines could allow the automaker to reduce engine sizes by between 40- and 50-percent, so 3.0-liter V6s could be replaced by two-liter fours and a 2.5-liter four cylinder could be reduced to 1.5-liters.

Before the EcoBoost four-pot debuts on the 2013 F-150, Ford will launch a turbocharged V6 in the pickup in 2010. Displacement is expected to be around 3.5-liters, with output estimated at around 350 hp and 390 lb.-ft. of torque. Partnered with a new six-speed transmission, fuel economy should be around 16 mpg city and 22 mpg highway.

And what of the rumored F-100 pick-up? It's conceivable that the range-topping version of the compact truck could be packing the same turbo'd four as its big brother, while a naturally aspirated version would power the entry level model.

Yanko Designs renders one-off Ferraris

The designs that Yanko's got on its website are from a past Ferrari design competition, thanks to all the sharp eyed readers who caught it.

As we reported not too long ago, Ferrari is not stupid, and if you've got the obscene cashflow, you can get your own design rendered in Rosso Corsa with a gen-yoo-wine Prancing Horse on the fender. Trouble is, not everyone has a shelf full of sketchbooks with multitudinous supercar designs lying in wait. Even if you do, they're probably not very good. Mastering foreshortening and perspective is not a weekend project, and designing a body that's actually capable of production is also not something the common man, even the uncommonly rich common man, is familiar with. Yanko Design has done some of the heavy lifting for those talentless hacks wanting to join the Jim Glickenhaus society. The Glick went to Pininfarina, but Yanko's collected some former Ferrari design competition candidates to remind us of what could be. The designs are from students, and Yanko's showing some of the ones that didn't make the cut. If these are what students can do, just think of what experienced hands could come up with. Some actually look good, though others would be better off as Hot Wheels cars. Wouldn't it just be cheaper to get one of those Fiero bodykits and put the leftover millions into retirement accounts?

Audi A1 not bound for U.S. shores

Despite the burgeoning popularity of small cars, especially with premium nameplates, Audi doesn't think there's a case for bringing its MINI-sized A1 to the United States. Audi CEO Rupert Stadler acknowledges that American customers are increasingly interested in fuel efficiency, but also contends that we want that frugality wrapped in larger sheetmetal than customers elsewhere might go with. In the interest of greener numbers, Audi's planning on going electric, launching an armature-motivated car around 2010, roughly the same due date as a Volkswagen electron-mobile. No decision has yet been made about a plant in North America, but that might reduce costs enough for attractive pricing to facilitate Audi's target of selling 1.5 million annual units by 2015. Without the A1, we're going to be forced to continue drooling all over the Alfa MiTo's roundy-round front fenders.

Class warfare: Exotic car owners in MA got massive tax break

Owning a high-end car? Fun. Paying the hefty vehicle tax on it? Not so much -- that is, unless you live in the state of Massachusetts. From the late 1990s to 2007, the state's Registry of Motor Vehicles missed collecting $32 million a year in annual taxes because it used the NADA database to calculate them for some 131,000 exotics or otherwise premium vehicles. Unfortunately for the RMV, NADA's database excludes high-end luxury vehicles, so there was no proper way to tax those cars in the state. If, for instance, you purchased a Bugatti Veyron, instead of paying many thousands of dollars, you could have wound up paying no more than the owner of a Ford Focus.

This is going to suck for owners of affected cars, as the taxman comes to collect what he missed the first time around, right? Wrong. Folks who purchased an affected vehicle through 2007 are completely off the hook. The commonwealth has decided that trying to collect the over $300 million it missed over all those years would be an administrative and legal nightmare. That's a win-win situation for premium car owners in Mass. that's sure to torque off the regular guy, whom the government had no trouble finding and collecting from, as usual. What's scandalous is that no one at the RMV figured this out until now. Bay Staters, that's you're local government (and those tax dollars it collects) at work.

Lexus cancels next-gen SC, Toyota cancels next Avalon

Sales of the bulbous Lexus SC 430, one of the vehicles that kick-started the current hardtop convertible fad in the U.S., have slowed so significantly that Toyota's luxury brand has reportedly canceled its replacement. The four-place, V8-powered, rear-wheel-drive vehicle never fit well into any specific niche, as it boasted neither the sportiness of the ragtop Jaguar XK and Porsche 911, nor the snob appeal of the BMW 6 Series. Through the first six months of this year, Lexus sold only 1,230 SC's, down 40% from last year. What fans the Lexus sport coupes/convertible does have need not worry, however, as the brand will be launching the much more potent (and substantially more impressive) LF-A supercar at some point in the future.

According to Inside Line, the SC isnt the only Toyota product without a future. The Avalon entry-level Buick luxury sedan is also on the chopping block. Fans of the boring unpretentious Avalon can instead look forward to an extended-length version of the Camry sedan to take its spot in Toyota's U.S. lineup.

Jaguar XF-R spotted at Goodwood Festival of Speed

Less than two months after Jaguar XF-R spy shots (followed by a second set) emerged, our man on the ground at the Goodwood Festival of Speed spotted the real thing doing double-time in front of the crowd. He was quick enough to snap five good shots of the fast cat at speed. Power is speculated to be in the 500 hp range, courtesy of a supercharged 5.0-liter V8. Riding on performance rubber wrapped around 20-inch wheels, the sleek sedan will be sure to sink claws into its German rivals when it rolls into showrooms next year.

2008 BMW M3 MT6

Third-party performance tuners like Alpina, AMG, Brabus, Ruf and others have thrived in the land of the autobahn, typically modifying cars from one particular brand. In the late '70s, BMW became the first of the German automakers to establish its own in-house tuning division, incorporating its motorsports arm into what's now know as the M division. The firm's racing knowledge disseminated down to its production cars with the introduction of the M1 and later the M535i. In subsequent years, M followed up with the M5 and M3. Eventually Mercedes followed suit by buying out AMG, while Audi launched Quattro GmbH. Over the past two decades, M has continued to create ever faster iterations of mainstream Bimmers and for 2008 the M brain trust brings us the fourth generation of the M3.

The original 1986 M3 used the boxy body of the E30 3-series coupe, equipped with a high output, 16-valve four cylinder engine to homologate the body and engine for Group A touring car racing. Over the years, M3s, like all other BMWs (and pretty much every other car on the road), have grown bigger, heavier and more powerful. The E36 and E46 M3s both drew motive force from in-line six-cylinder engines ranging from 240hp to 333hp. The new E90-based M3 has what could turn out to be the ultimate engine of the series, with an all-new 4.0-liter V8 generating 414 hp and 295 lb.-ft. of torque. But what's it like to live with? Follow the jump to find out.

European hunting season cancelled: Cadillac CTS-V not crossing Atlantic

Cadillac's wicked new CTS-V may have the likes of the BMW M5 in its sights, but it appears that it won't be hunting down the best that Munich, Stuttgart and Ingolstadt have to offer on their Autobahn home turf. According to Top Gear, Caddy's U.S. minders don't think the V's blown V8 is good for Europe, so the car apparently won't be making the boat trip across the Atlantic. Unfortunate, as it would have been interesting to see how America's ultimate muscle sedan would have fared when euro journos pitted it against all the hometown favorites. Sure, we'll see comparos done Stateside, but it would have been fun to see Cadillac put on the "away" jersey to try and add some luster to that long-tarnished "Standard of the World" mantle against Europe's top performance machines -- including the ones we don't see here, like the new Audi RS6.

Volvo to trim 30-percent of U.S. dealers by the end of next year

Volvo hasn't been doing too hot lately, posting a $1.73 billion loss over the past five years as it flails to find its niche. Sales of almost every Volvo product have declined in 2007, with the S60 falling by 28.1 percent, the XC90 dropping 5.6 percent and the V70 station wagon losing 7.7 percent. For June of 2008, Volvo only moved 7,001 vehicles, down 14.2 percent compared to last year. Something has to be done on the retail side, and according to Automotive News, dealers are on their way out.

The automaker is looking to cut out approximately 30 percent of its U.S. dealer network by the close of next year, however, Volvo retailers won't be cut in Europe, nor Russia, where Volvo is a leader in premium vehicle sales.

Volvo recognizes that part of its problem is fuel efficiency, so it's focusing on producing smaller vehicles and pushing its C30 hatch hard in the States. A hybrid version of the XC60 is in the works, but that won't be out for at least another three years... in Germany, and as a stopgap, Volvo plans to implement start-stop technology on its smaller engines.

HUMMER H3T starting at $31,495, sales begin September

HUMMER is on the skids and pickups aren't flying off dealer lots, but if you're smitten with the H3 and need to haul more than its covered cargo bay can handle, the H3T is yours for the taking. Pricing starts at $31,495, including a $745 destination charge -- $850 less than a comparable H3.

For that kind of cash, you get a five-foot-long bed covered with an integrated liner and built-in storage system, full-time electronically controlled four-wheel-drive, 32-inch tires, functional skid plates and the five-year/100,000-mile warranty. The base model will pack the 3.7-liter five-cylinder, but a 5.3-liter V8 will be available, along with Bluetooth integration and an upgraded OnStar system. GM hasn't released details on what that kind of kit will set you back, but you can hit up your local dealer to find out when the H3T goes on sale in September.

Ford Fiesta Zetec S to debut before RS version

While the official unveiling of the 2009 Ford Fiesta is still a couple weeks away, that hasn't stopped Ford from tossing sneak peeks of a sportier Fiesta Zetec S out to the hot-hatch followers. Nowhere near as aggressive as the Focus RS, the Zetec S is differentiated by its body kit with new front splitter and side skirts. The European Fiesta will be offered with five different engines, but the Zetec S will feature only the Duratec 1.6-liter rated at 118 hp. Tuned for efficiency, yet designed to be fun-to-drive, the new hatch will scoot to 62 mph in less 9.9 seconds and squeeze an impressive 50 miles out of a single gallon of gas.

Mitsubishi Lancer Ralliart (supposedly) to start under $27k

According to Greb Migliore, an Autoweek scribe attending the Ralliart's press launch, the Mitsubishi Lancer Ralliart will arrive in showrooms this September with a price tag under $27,000. The turbocharged middleweight sedan – aimed squarely at the Subaru WRX – is a clear choice for those that don't want to shill out $40k for its big brother the Evolution X.

Instead, you can get the same 4B11T/C engine (equipped with a smaller turbo) sending 237 hp and 253 lb.-ft. of torque to Mitsubishi's dual-clutch SST gearbox and on down to a modified version of the Evo IX's all-wheel-drive setup. Go crazy with the options, including Recaros, Sirius radio, sat nav and HID headlamps, and you'll be knocking on the $30k ceiling.

However, don't hold Migliore (or Mitsubishi) to that price just yet. The final cost hasn't been determined and will be dependent on currency fluctuations between the U.S. dollar and the Japanese yen.

For the truly insane: 1800-horsepower Mosler MT900S

The standard Mosler MT900S is a supercar by anyone's standards. It's got a sleek body made of carbon fiber, a 7.0-liter V8 with 550 horsepower, and can hit 60 mph in just over three seconds. But for one of Mosler's customers it just wasn't enough. The owner of this MT900S enlisted the help of Nelson Racing Engines in Chatsworth, CA to build the ultimate motor for his supercar: a twin-turbo 427ci V8 producing up to 1800 horsepower on race fuel and around 1100 horsepower using 91 octane. To help make the car more streetable, boost can be controlled every 100 rpm in each gear. The first few gears are limited to around 6-8 psi, while higher gears can take full boost -- over 30 psi! We recently got the chance to see the car in person at the NRE facility where they were doing final testing on the engine. The dyno run we witnessed netted nearly 1600 horsepower before the intake collapsed from the pressure. We were told that the car should be completely finished in the next couple weeks and that we could come back for a ride. We'll be sure to take them up on the offer!

Jaguar to celebrate 60 years of XK at Goodwood

The Goodwood Festival of Speed is claimed to be "... the world's biggest and most diverse celebration of the history of motor sport and car culture." Held on the grounds of Goodwood House, West Sussex, England, the event was founded in 1933 and has grown over the years to include a hill climb race, rally stage, design competition, technology showcase, and air show (this year's show will feature a fly-over by the Airbus A380). To celebrate 60 years of the XK, Jaguar will be bringing more than a few special cars to Goodwood this week. They include the XKR-S (the fastest ever production XK), XK 140, XK 120 'Montlhéry' Fixed Head Coupe, D-type "Long Nose," and the XK 120 "NUB 120" (shown above). All will be accompanied by Jaguar's Le Mans winning XJR-9. This is an annual event you don't want to miss. Don't lose sleep if you can't be there in person this year... we've got someone on the ground covering everything beginning Friday.

Volkswagen mulls South for next auto plant

If Volkswagen AG decides to build its U.S. assembly plant in the South, the German company will join other foreign automakers that are increasingly turning the region into a hotbed of car manufacturing.

The South offers automakers ample highway and rail systems and proximity to the large market of U.S. consumers. But its main attraction: Existing auto plant workers, even those who are victims of other industries exporting jobs, have rejected overtures by the United Auto Workers."Foreign-owned automakers have been a tough nut for the UAW to crack, and the South is particularly difficult," said Harley Shaiken, a University of California, Berkeley, professor who specializes in labor issues."That is without question an important part of their location decision," he said.

Volkswagen's plant will be part of the company's strategy to increase its presence in the U.S., where the maker of the Jetta, Golf and Beetle holds just 2 percent of the market.VW executives have narrowed their site options to Alabama, Tennessee and Michigan. All three states are offering financial incentive packages. The automaker's representatives and economic development officials won't discuss the site search.A Tuesday meeting of the company's management board in Frankfurt, Germany yielded no decision on where to build. Volkswagen's supervisory board, the equivalent of a U.S. board of directors, is to meet July 15, with an announcement expected soon afterward.

Industry executives and analysts say there is plenty of room in the South, where foreign auto assembly plants have been locating since Nissan Motor Co. set up shop in Smyrna in 1983.Analysts say the region can easily provide another 2,000 skilled workers, as can Michigan, where there are autoworkers idled by cost-cutting American companies.David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., said auto plants can locate within 40 or 50 miles of each other but "10 or 20 miles, that is too close," Cole said.

He said automakers "don't want to be competitive with someone who is a high-paying employer."Honda spokesman Ted Pratt said Volkswagen or anybody coming into the area "will find what we found: a great quality of life and a great work force."Honda set up operations in east Alabama in 2001, and the assembly plant Kia Motors Corp. plans for West Point, Ga., will be about 100 miles away. Two likely Volkswagen plant sites in Chattanooga and Huntsville, Ala., also are about 100 miles from the Honda plant.

Pratt said the plants seem "spread apart far enough so we are not pulling from the same labor pool."Spokesmen with Nissan Motor Co.'s North American plant in Nashville, BMW AG's plant in Greer, S.C., and Honda Motor Co.'s Lincoln, Ala., factory also said their companies have no reason to worry about the region becoming crowded with automaking.Nissan spokesman Fred Standish said competitors' locations haven't factored into Nissan's decision-making.Cole said a U.S. location is more competitive than ever in the current global economy and compared to Mexico, U.S. workers are better educated.

Volkswagen's only North American plant is in Puebla, Mexico, where 9,600 union workers staged a five-day strike in 2006 for better wages and benefits."They want an educated, motivated work force," Cole said.The issue with unions isn't wages. Auto production line work in the U.S. pays about $27 an hour in both union and nonunion facilities, Cole said.

Erich Merkle, vice president of auto industry forecasting for the consulting company IRN Inc. in Grand Rapids, Mich., said the issue with unions is they go on strike.Employees at Nissan's Smyrna, Tenn., plant voted down a UAW organizing effort on a secret ballot in 2001. The union has made failed attempts to get a foot in the door at the Toyota plant at Georgetown, Ky., and last year Honda executives sent letters to employees at its Lincoln, Ala., plant warning that any move toward organizing would "radically change" operations.

UAW officials did not return telephone messages seeking comment.Attica Scott, coordinator of the Kentucky Jobs With Justice organization that supports labor unions and has worked to organize the Toyota plant at Georgetown, said the UAW has to educate workers about the benefits of "having a voice on the job."Scott said union representatives help in cases of discrimination and job injuries.

The assembly plants benefit from going where suppliers are.Merkle pointed out the South already has German suppliers working with Daimler AG's Mercedes-Benz and BMW, and a Japanese supply network sprouted in Kentucky around Toyota's plant.He said the close proximity is a "savings for both the suppliers and the automaker."

BMW spokesman Bobby Hitt said his company, which has operated in Upstate South Carolina since 1995, and likely its established supplier system, see no crowding on the southern landscape.Research and education resources that automakers want also are taking root in the Southeast.Seven universities — Tennessee, Auburn, Clemson, Mississippi State, Alabama, Alabama-Birmingham and Kentucky — have joined in an automotive research alliance.

The Clemson University International Center for Automotive Research, with BMW's U.S. subsidiary and Michelin as close partners, already offers master's and doctorate programs in automotive engineering.Foreign automakers have been pouring money into the region, accelerated in part by the weak dollar.

BMW has announced a $750 million expansion, with plans to add about 500 jobs."Obviously at the exchange rate right now, if one has a plant in the United States it is a good time to expand it," BMW's Hitt said.

Kia is preparing to spend $1.2 billion for its Georgia plant, and Toyota is investing $1.3 billion for new operations in Tupelo, Miss., to complement its Kentucky plant employing 7,000.The economic bounties for winning communities are substantial. Toyota estimates that payrolls for its new plant in Mississippi and related ongoing jobs will total more than $300 million a year by 2011.

Volkswagen no doubt has noticed the success in the region.Michael Randle, editor and publisher of Southern Business and Development magazine, said Volkswagen learned lessons when its assembly plant near Pittsburgh closed in 1988.Randle said this time "VW has got to make sure their decision is right."

Super Aguri assets to be auctioned

In the fast-paced world of Formula One, teams come and go. Only most of the time, they're just changing names and management (in fact, Ferrari and Williams are the only teams still on the grid that were founded under the same name and same ownership as they remain today). So Jordan Grand Prix, for a most vivid example, became Midland F1 Racing in 2006, then Spyker in 2007 before its metamorphosis into Force India for 2008. Super Aguri was another story. Founded by former racing driver Aguri Suzuki, the team was the first in years to actually put up the bond necessary to start a completely new entry. Unfortunately, the uniquely Japanese-named team never had the money it needed to succeed, and after a little over two years, the team folded. But not before millions upon millions were spent on cars, equipment and everything else.

So what happened to all that stuff? Well, after Super Aguri went into bankruptcy administration earlier this year, the team's remaining assets are to be liquidated by British auction house SHM Smith Hodgkinson at the end of this month. Among the assets up on the block will be a dozen F1 racing cars, a fleet of transporter trucks and four autoclaves. So if you're looking to buy yourself the remains of an F1 team, this could be your chance.

GM shrinks Volt's gas tank, range drops from 600 to 360 miles

One of the many things General Motors boasted about when it unveiled the Volt concept at the Detroit Auto Show in 2007 was its 600-mile range. This was achieved partially by the battery pack, which could sustain a (theoretical) charge allowing the Volt to run for 40 miles without reverting to the gasoline engine/generator, as well as a 12-gallon fuel tank. According to Kicking Tires, GM has shrunk the size of the tank by an unknown quantity and the result is a reduction in range from 600 to 400 miles – or 360 miles without the aid of auxiliary (read: grid-provided) power.

The General maintains that since most owners don't travel more than 40 miles in one day, it wasn't necessary to fit the Volt with a larger tank. That reduction in capacity will save some weight, but what will it cost in public perception? The hype surrounding GM's supposed savior and game-changer are based on two figures: range and cost. If GM can deliver on both counts, they might have a hit on their hands. If not, the Volt will be DOA the day it hits dealers.

Chevy Volt to make an appearance in Transformers sequel?

Just how important is the Chevy Volt for ailing General Motors? Obviously, that's a rhetorical as GM is making it out to be the second coming of the horseless carriage. The money being invested into the latest battery technology and the sophisticated platform which carries it proves that the General is placing massive wager on plug-in electric cars. And you can bet that it will be hyping the Hell out of them too. We already reported on the fact that the Volt will be a centerpiece of General Motor's upcoming Centennial celebration, and now we hear that the production Volt could join GM's other upcoming gas-saver, the Chevy Beat, by making an appearance in the highly anticipated Transformers sequel.

Die-hard Camaro fans have been anxiously awaiting its formal introduction since it strutted its stuff in concept form in the first installment of Transformers. Thankfully for Volt aficionados, along with just about anyone else looking to save a few bucks on their fuel bills, we shouldn't need to wait nearly as long after its big-screen debut for a shot at driving off the showroom floor in a shiny new electric car, assuming the Volt actually arrives on schedule for its 2010 launch.

General Motors swaps Hummers for mini-cars as fuel prices soar in the US

General Motors, the maker of the iconic off-road Hummer, may be gearing itself up to sell mini-cars in the US, in order to win back market share as soaring fuel costs turn Americans off gas-guzzlers.

Usually sold only in Asia and Latin America, GM is thought to be developing a version of the Chevrolet Beat for America’s highways, according to a report by Bloomberg. Not much bigger than the Daimler Smart car, the Chevrolet Beat does 40 miles to the gallon - making its fuel efficiency second only to hybrid cars in the US.

The consideration by GM comes after the company’s US sales tumbled 18.5pc last month, while rivals Ford and Toyota also reported dwindling sales, down 28pc and 11.5pc respectively.

Yesterday, shares in General Motors plunged to their lowest level since September 1954 as fears for the company’s future escalated. One analyst at Merrill Lynch told the market that a GM “bankruptcy is not impossible if the market continues to deteriorate”. The group’s shares closed down 15pc to $9.98.

Meanwhile, fellow motoring giant Ford reported a 27pc fall in truck sales for June, with 59pc of sales now secured by cars and cross-over vehicles.

advertisementIn a further sign that cash-strapped Americans are downsizing, sales of BMW’s Mini jumped 25pc in June. BMW introduced the Mini to the American market in 2002, reaching record sales of 42,045 cars last year. The German carmaker sold 26,400 Mini’s in the first six months of this year - putting it on course for another record. Sales of small cars across the US rose 31pc in the first six months of the year, with sales of the biggest SUV’s falling a corresponding 31pc.

GM has reassigned many of its engineers to its new mini-car project, and has reportedly suspended SUV and truck programs until demand returns to the market. A GM spokesman told Bloomberg: “We are looking at and reviewing our entire portfolio, not just because gasoline is $4 (a gallon) but because of stricter government fuel economy regulations”.

The wait is over. First U.S. Nissan GT-R delivered at 12:01 AM

After we've had to adore the turbocharged Skyline GT-R from afar for nearly two decades, Nissan is officially selling its game-changing super coupe on U.S. shores for the first time. In a late night ceremony at a Universal City, California dealership, Daryl Alison took delivery of the very first GT-R sold Stateside – by the automaker. The event included all the pomp and circumstance you'd expect, including an appearance by notorious hot-shoe, Steve Millen. Alison, a long-time Nissan fan whose garage has housed a number of sports cars, including several 350Zs, was grinning from ear-to-ear while he got a rundown on this black GT-R in Premium trim. Not surprisingly, Alison paid sticker price ($72,900) for his GT-R, likely to be the first and last to do so as owners begin taking delivery of their own GT-Rs in the following weeks.