In 2007 Volvo partnered with Swedish energy company Vattenfall to examine ways to work together and now the duo has agreed to develop a plug-in diesel hybrid for production by 2012. This summer Volvo will unveil three initial test vehicles based on the V70 wagon.

“We are investing in an industrial joint venture to series-produce plug-in hybrid cars in Sweden in 2012, cars that can be powered by both electricity and diesel,” said Volvo CEO Stephen Odell. “This is an important business development for us and our partnership with Vattenfall allows us to take a giant step toward offering our customers cars with an even smaller environmental footprint.”

The cars will feature an electric motor and a lithium-ion batter pack, which can be recharged from a conventional wall outlet in five hours.

“We want to reinforce electricity’s importance in society and its key role in solving climate issues,” says Vattenfall CEO Lars G Josefsson. “Through this cooperation we hope to be able to speed up the introduction of electric cars. Together we are developing the next-generation technology based on plug-in cars and various charging alternatives.”

Vattenfall will also offer customers the ability to sign a contract ensuring that the electricity delivered to their house is generated by wind power or hydro power, further reducing the environmental impact of the car.

GALLERY: Volvo V70 Plug-In Diesel Hybrid

Official release after the jump:

Continue Reading…

In a surprising move, a potential buyer for Saab has been found from the company’s home country. Nope… note Swedish automaker Volvo, but Swedish supercar maker Koenigsegg.

The news comes from the newspaper Dagens Industri and is so surprising because of Koenigsegg’s mass-market obscurity.

Koenigsegg has, however, made a success out of its supercar business, selling machines like the CCX and 1,000 horsepower CCXR (pictured above), for over one million dollars.

It is expected that were Koenigsegg to be a contender in the bidding process it would likely need one or more partners, and with the supercar maker’s client list including some of the world’s wealthiest people, partners might not be all that hard to find.

Saab has yet to officially announce a list of buyers and did not comment on the Dagens Industri report.

[Source: Channel4]

[Photos Credit: CarStudio.it]

We’ve known for quite some time that Ford was planning on bringing its Fiesta model to North America, but as these most recent spy photos show, the U.S. automaker will launch more than just a hatchback.

Photos of this Ford Fiesta Sedan show a European-inspired sedan, with a long wheelbase and very short front and rear overhangs. It looks a bit round, but that is sure to be minimized once the front and rear designs are uncovered.

In general, the car shares a resemblance with the rest of the Ford lineup and design elements like the boxy fenders and the sculpting on the doors have a definite Focus look to them.

Ford is also planning on selling the Fiesta as a more traditionally European three-door and five-door hatchback.

GALLERY: Ford Fiesta Sedan

[Photos: KGP Photography]

According to a recent report in German auto pub Auto Motor und Sport the replacement for Lamborghini’s flagship Murciélago won’t arrive until 2012. This means the current Murcie will have to hold on for an additional two (or possibly even three) years before it bows out. This will give the raging bull a total production run of 11 years – the same as the Diablo before it.

Lambos can typically have such a long production run due to the ultra-modern styling and excessive amounts of horsepower, both of which ensure the cars aren’t overshadowed easily.

Lamborghini also tends to release several special edition and even higher performance models to keep up interest its vehicles. So far these have included the LP640 as well as the 40th Anniversary and Versace editions, in both coupe and roadster versions.

More recently the company has also introduced the LP650-4 and the amazing LP670-4 SuperVeloce. We expect that before the Murcie exits the stage, we’ll see at least one other amazing version.

As for the 2012 successor, it is expected to use an aluminum chassis, as opposed to the steel one used in the Murcie. This should help to reduce weight significantly. The chassis itself may be a modified version of the R8 platform with a long wheelbase and very short overhangs. All-wheel drive will continue to be used, as will a V12 engine.

[Source: Auto Motor und Sport via Autoblog]

Thanks to the folks over at WorldCarFans we have these spy photos of an upcoming high-performance version of the new 7 Series. Likely to be called the M7, BMW isn’t being shy about it as the vehicle was caught out testing without any real camouflage.

A new front bumper reveals significantly-sized air intakes and a bulge in the hood indicates there is some serious horsepower under the the hood. The bulge or “power dome” is much like the one found on the M3 – increasing the possibility that this will in fact be called the M7.

The M7 will compete against bruisers from Mercedes, including the S63 and S65, however, it is not known which engine will power the super saloon. There are, however, two strong possibilities.

One option is the twin-turbo 6.0-liter V12 engine found in the new 760, with 554hp and 553 ft-lbs of torque. We’d wager, however, that the car would be powered by the same engine as in the X5 M and X6 M, a twin-turbo 4.4-liter V8 that makes 555hp and 500 ft-lbs of torque.

Expect to hear more about this car at the Frankfurt Auto Show this Fall – if not sooner.

GALLERY: BMW M7

[Source: WorldCarFans]

It may look like a wild and wacky concept car but Kia may be getting close to building the Soul’ster. The funky convertible, crossover jeep-like thingy debuted at the North American International Auto Show in Detroit in January, just after the Soul went into production.

A little over a year ago, putting the Soul’ster into production would have seemed impossible, but with the success of the Soul it’s more than just a possibility.

After unveiling the Soul’ster concept, Kia made it clear that production was a possibility if there was a genuine interest in the production. And apparently there is.

Kia-World is reporting that according to one Kia official the vehicle has received a “very, very positive” reception.

The Soul’ster would help Kia continue to position itself in the marketplace as a fun, youth-oriented brand – helping draw attention to a new line of products that are also aimed more economy-minded, entry-level consumers.

If the Soul’ster does get the green light for production, it could be on sale in North America as early as 2010.

[Source: Kia-World]

A day after filing for Chapter 11 bankruptcy protection, General Motors has announced it has found a buyer for its Hummer brand of SUVs. GM has not, however, named the party.

Earlier reports indicated that of the short-list of three potential buyers none of the companies were automakers. One is apparently a U.S. company and the two others are from overseas. The list apparently included wealthy individuals and private equity firms.

General Motors has also not revealed the deals of the sale, including just how much it got for the Hummer brand. The deal does give some hope to Hummer as the new company has plans to aggressively fund the development of future vehicles. The success of that plan would of course depend on if buyers return to their massive SUV buying ways once the recession subsides.

In 2008, 27,485 Hummers were sold in the U.S., down 51 percent from the year previous.

The good news in the interim is that the sale will save almost 3,000 jobs in manufacturing, engineering and at Hummer dealerships. GM will also continue to assemble the H3 and H3 SUT for the new company through 2010.

The deal is expected to be finalized by the third quarter of this year.

In the next several weeks GM is also expected to announce buyers (or at least lists of potential buyers) for Saab and Saturn.

[Source: Automotive News]

By solidifying a deal to take control of GM’s European operations, Canada’s Magna International Inc. is eager to start producing Opel cars in Canada.

“We want to build Opel cars in Canada,” said company founder and CEO Frank Stronach. “Canada should have its own Canadian company … a truly Canadian automobile industry.”

The third largest auto parts supplier in the world, Magna certainly has the resources and the know-how – it just doesn’t have the facilities to build cars in Canada. That, however, might all change as Chrysler may close operations and General Motors Canada recently shut down its truck plant in Oshawa, Ontario.

The lower value of the Canadian currently would likely help matters and should be enough to easily offset the cost of shipping vehicles to Europe – although it’s not clear that Canadian-built cars would be for the European market, as moving production outside of Germany would certainly be a devastating public relations move.

What Stronach may have in mind is for Opel-based cars to be built in Canada for distribution in Canada and the U.S. As Magna is also currently bidding to take control of Saturn from GM, it’s entirely possible that production of those models, all but one of which are based on Opel vehicles, could happen in Magna’s backyard.

There is also a strong possibility that Magna will expand into the Russian car market.

Magna’s partners in the Opel deal include Sberbank of Russia and both Stronach and Magna have strong ties to Russia. Stronach actually did work as an auto industry adviser for Prime Minister Vladimir Putin and Russian Magna investor Oleg Deripaska (the owner of Russian truck maker GAZ) has had long standing aspirations to sell consumer cars.

Building Opel models in Russia is a strong possibility, however, it is unlikely those models would be exported to Europe.

General Motors is expected to announce final candidates for the sale of Saturn in the next few weeks.

[Source: The Globe and Mail]

On June 8 auto journalist Gerhard Plattner and co-driver Franz Doppler will attempt to set a world record, driving from Africa, through Europe to Asia in just 72 hours. The duo will depart from Rabat, Morocco in an Audi A3 TDI e, traveling 3,044 miles (4,900 km) through 13 countries before the adventure ends on the Asian side of Istanbul.

The small 105hp Audi will undergo a genuine torture test while en route, testing its safety, efficiency and comfort. “The A3 has ideal characteristics for all three continents. Nevertheless, any attempt to break a record also requires a lot of good luck, especially regarding the weather and traffic,” said Plattner at a press conference during the  Audi Forum Ingolstadt.

The route will take both Plattner and Doppler by ferry to Spain, where they will drive along the Mediterranean coast of Spain, France and Italy before crossing the Alps into Germany. There they will proceed on to the Balkans and then over the Bosporus to arrive on the Eastern side of Istanbul.

Plattner already holds several records, including the fastest drive around the world (in an Audi S2).

In total he has driven more than 4.3 million miles.

Official release after the jump:

Continue Reading…

Just last week we reported on Honda’s upcoming Accord-based Crossover and now thanks to VWVortex member GoVdubSPEEDGo, we have these amateur spy photos of the vehicle taken in the Great Smoky Mountains National Park.

There is no denying the car’s relation to the Accord, with the exterior taillights and that strong line running across the sheet metal on the side of the car.

The CrossTour, as it has unofficially been named, would slot in above the CR-V and below the Pilot, as a V6-powered 5-seater. Both front-wheel drive and all-wheel drive versions are expected.

Designed to compete with the Toyota Camry-based Venza, the CrossTour certainly looks more car-like and appears lower to the ground – which would make sense with Honda’s more sporting character. The CrossTour is expected to be just 2.5-inches taller than the Accord, but a significant 7-inches longer than the Venza – space which will be used for a more functional trunk area.

The Honda CrossTour could be in dealerships as early as this October.

GALLERY: 2010 Honda CrossTour

[Source: VWVortex]