Just days after President Obama proposed new legislation that would see fleet fuel-economy standards rise considerably in the U.S., Subaru has said it will explore the possibility of bringing a hybrid to market in order to reduce its fleet average.

Ikuo Mori, the CEO of Subaru’s parent company Fuji Heavy Industries told a group of reporters that the idea was being looked in to and that a vehicle could be brought to market by 2012.

The hybrid model would use a Toyota-sourced gasoline-electric powerplant, as Toyota is the largest shareholder of Fuji.

Mori also said that Subaru is currently working to bring a diesel to market at around the same time. He did not comment on the future of Subaru’s electric vehicles, including the G4e (pictured above), which debuted at the Canadian International Auto Show this past February.

If the proposed legislation in the U.S. is approved it would see fleet standards rise to 35.5, mpg by 2016. Currently automakers are facing an 8 percent increase in fuel-economy standards that would see fleet averages for light-vehicles (cars and trucks) at 27.3 mpg for 2011. Cars would have to achieve a fleet average of 30.2 mpg by that date.

[Source: Bloomberg]

No matter how cool a U.S.-spec car is, foreign automakers always seem to have an even more impressive and hard-core version for oversea’s markets. The Mitsubishi Lancer Evolution is a stellar performer, but in the U.K. apparently there’s a demand foreven more power – 36 more horsepower to be precise.

Named the FQ-330, this new model generates 329hp and gets a bump of 22 ft-lbs of torque for a total of 322 ft-lbs. The added power is acheived through the use of a new high-flow exhaust, a new downpipe, as well as new intercooler piping and a new catalytic converter.

Standard equipment on the FQ-330 includes Eibach springs, Bilstein shocks, Brembo brakes, Recaro seats, 18-inch Enkei wheels and Mitsubishi’s amazing double-clutch TC-SST transmission..

Pricing for the new model is set at £35,999 (roughly $56,0000), a £3,000 premium over the standard Evo model. It will be offered in four different colors: Cool Silver, Orient Red, Lightning Blue and Phantom Black.

Official release after the jump:

Continue Reading…

Ahead of the world famous Nürburgring 24 Hour race this weekend, Lexus has released a set of photos of not one, but two LF-A models that will compete for the title.

Last year Lexus brought an LF-A test mule out to the race but announced that it wasn’t technically competing, which is a good thing considering the car didn’t make it far.

This year the automaker is back and have increased their odds with not one but two LF-A models, both running in the Division 2 SP8 class for close to production models. Lexus has also employed the expertise of Gazoo Racing, which runs Lexus cars in the Super GT series in Japan. One of the cars will be co-piloted by Toyota’s new CEO Akio Toyoda.

The LF-A features a 4.8-liter V8 with around 500 hp and uses a paddle-shift sequential gearbox.

The production version of the car is expected to debut at the Tokyo Auto Show this Fall.

Lexus may be looking for an outright win at the Nürburgring 24 but this year it may be even harder than in the past. Not only will there be the usual fleet of BMWs and Porsches, but Audi has announced plans to run four R8s.

The Nürburgring 24 Hour race starts this Saturday (May 23rd) and runs until Sunday.

GALLERY: Lexus LF-A N24 Racer

Volkswagen has just released some initial information on the upcoming Golf Estate, which the company confirmed at the sixth-generation Golf’s debut at the Canadian International Auto Show in Toronto, will make its way to North America.

The Golf Estate is a compact car and yet as a wagon it offers plenty of cargo room – as much as 52.8 cubic-feet with the rear seats folded flat.

In Europe the Golf Estate will be available with six different engine choices, however, North American models will most likely only have two or possibly three options.

In the diesel category, the base engine is a 105hp 1.6-liter TDI that gets 52.3 mpg on average. A larger 2.0-liter four-cylinder diesel will make 140hp and achieve 47 mpg.

In the gasoline department, 80hp and 102hp naturally aspirated gasoline engines will be available as will a 122hp TSI and 160hp TSI motor. These engines will get 37 and 36.8 mpg respectively.

Both of the top-level gasoline engines (as well as both diesels) can be purchased with the optional DSG transmission, which improves fuel economy further to 39.2 and 38.6 mpg.

It is expected that the 160hp TSI gasoline engine and 2.0 TDI engine will be offered in North America.

In Europe the Golf estate will be offered with VW’s Park Assist program and a rear-view camera.

The Golf Estate goes on sale tomorrow in Germany for a starting price of 18,500 Euro, with initial deliveries starting in September. There is no word yet on U.S. or Canadian pricing.

GALLERY: Volkswagen Golf Estate

More on the New Golf Estate after the jump:

Continue Reading…

Hot on the heels of its modification program for the E-Class sedan, German Mercedes-tuner has released a full line of products for the E-Class Coupe.

Highlights include a full aero kit, new 20-inch wheels and, or course, a massive engine upgrade with 462hp.

The aero kit includes a new polyurethane front bumper with integrated LED lights, side skirts and a rear bumper with special cutouts for the Brabus exhaust system. Aluminum front fenders are also available.

Brabus offers 17, 18, 19 and even 20-inch wheels for the E-Class Coupe with the largest 20s measuring 20×9.5-inches up front and 20×9.5-inches in the rear with 235/30/20 and 265/25/20 tires. Different suspension parts are available from lowering springs to a full coilover setup.

A big brake kit is also available with six-piston front calipers, four-piston rear calipers and 14.2-inch rotors all around.

As for the engine, Brabus offers its 6.1-liter V8 engine for the E-Class Coupe, which delivers 462hp and 453 ft-lbs of torque at 3100 rpm. Brabus claims a 0-62 mph sprint in just 4.7 seconds and a top speed of 196 mph.

GALLERY: Brabus E-Class Coupe

More on the Brabus E-Class Coupe after the jump:

Continue Reading…

Daimler has just announced that it has reached an agreement with Tesla Motors Inc., that will see the German automaker gain a 10 percent stake in the California-based electric car maker.

Along with an undisclosed amount of money the agreement will help forge a partnership between the two companies as they work to bring electric vehicles to market in increasingly high numbers.

Tesla has already been working with Daimler to equip 1,000 SMART fortwo models with lithium-ion batteries for use in special test projects in Berlin and Italy. Daimler also plans to introduce an electric Mercedes vehicle by 2010.

As for Tesla, it will gain the engineering, production and supply chain expertise available at Daimler in order to move the upcoming Tesla Model S into production by 2011.

“Our strategic partnership is an important step to accelerate the commercialization of electric drives globally,” said Dr. Thomas Weber, the board member at Daimler responsible for research and development. “As a young and dynamic company, Tesla stands for visionary power and pioneering spirit. Together with Daimler’s 120 years of experience in the automotive sector this collaboration is a unique combination of two companies’ strengths. This mark another important milestone in Daimler’s strategy for sustainable mobility.

Tesla CEO Elon Musk was equally as enthusiastic about the future partnership saying Daimler is on the “leading edge of sustainable mobility.”

“Daimler has set the benchmark for engineering excellence and vehicle quality for more than a century,” said Musk. “It is an honor and a powerful endorsement of our technology that Daimler would choose to invest in and partner with Tesla.”

Official release after the jump:

Continue Reading…

The all-new E-Class Coupe from Mercedes would more accurately be called a C-Class Coupe. We’re not saying that to knock the car either. It’s just that, technically speaking, it’s a C-Class underneath.

That’s right, the chassis of the new E-Class Coupe is based on the C-Class sedan’s architecture. The vehicle is even built int he same facility as it’s lower-level sibling in Bremen, Germany. The E-Class sedan is built elsewhere in Sindelfingen.

By using the smaller car’s chassis, Mercedes was able to drop 400 lbs of weight as compared to the sedan. The weight-saving measure is also a cost-cutting measure – which Mercedes is passing on to the consumer. The entry-level E350 E-Class Coupe costs $50 less than the outgoing CLK350.

[Source: Automotive News via Autoblog]

The possibility that Penske Automotive Group may in fact purchase the Saturn brand from General Motors has just increased significantly. Penske has acquired the services of former Chrysler President Tom LaSorda as an adviser on the bid.

Penske is the second largest dealership group in the U.S. and also distributes the SMART brand of cars in the U.S. for Mercedes parent company Daimler.

The Detroit News is reporting that the Penske bid may involve other partners, including Serra Automotive Inc. and the Suburban Collection. Serra Automotive is the 15th largest dealership group in the U.S. with 21 stores in six states. The Suburban Collection is the 13th largest group and boasts 7 Saturn dealerships.

While many of GM’s brands have received little attention from prospective buyers the list of parties interested in Saturn seems to grow daily. Bloomberg is reporting that Canada’s Magna International is interested in Saturn, while other recent reports indicate Renault/Nissan is interested.

Saturn has said it has engaged in talks with the investment firm Telesto Ventures about a possible sale.

Currently GM is eager to part with Saturn as it faces a June 1st restructuring deadline.

[Source: Automotive News]

General Motors will cut 1,124 dealerships loose by October of 2010. The struggling automaker on the verge of bankruptcy sent letters out to the dealerships last week as it searches for ways to reduce it’s current dealer network of 5,969 to just 3,600.

GM says it will not renew dealership agreements with the 1,124 companies when their contract renewal comes up in October of next year.

The dealerships being cut are considered to be poor performers and accounted for just 7 percent of GM’s U.S. sales last year.

Another 470 dealerships are also scheduled to be let go as GM parts with the Hummer, Saab and Saturn brands. An additional 35 stand-alone Pontiac dealerships will also be cut.

Those dealerships not already notified aren’t necessarily safe, however, as the remaining 4,300 stores is still 700 over the 3,600 cap.

The news of GM’s numerous dealership closings came just one day after Chrysler announced it would drop 789 U.S. dealerships.

[Source: Automotive News]

Yesterday President Obama announced a new proposal being put forward to increase fuel-economy standards across the board. If enacted, the legislation would see the fleet average for passenger vehicles rise to 35.5 mpg by 2016.

Currently automakers are facing an 8 percent increase in fuel-economy standards that would see fleet averages for light-vehicles (cars and trucks) at 27.3 mpg for 2011. Cars would have to achieve a fleet average of 30.2 mpg by that date.

The new legislation would see increases of 5 percent annually after that, with a fleet average of 35.5 mpg by 2016.

President Obama made the announcement at the White House yesterday and was joined by representatives of 10 supporting automakers and the UAW.  In attendance were GM CEO Fritz Henderson, Ford’s Alan Mullaly, Chrysler’s Bob Nardelli, Toyota’s Jim Lentz, Honda’s John Mendel, BMW’s Friedrich Eichiner, Nissan’s Dominique Thormann, Daimler’s Dieter Zetsche, Mazda’s Jim O’Sullivan, Volkswagen’s Stefan Jacoby and the UAW’s Ron Gettelfinger.

If enacted the proposal would reduce America’s fuel-consumption by 1.8 billion barrels of oil.

The agreement was arrived at with the consent of California, which will cease to have its own fuel-economy standards.

The cost of achieving the new fuel-economy standard is expected to be roughly $600 per vehicle, a tab that will no doubt be passed along to the consumer.

[Source: Automotive News]