Subaru is reportedly looking to scrap plans for an AWD version of the Toyota FT-86 in favor of a rear-drive only model. This is sure to have the marketing department at Subaru up in arms with the accountants, as Subaru’s whole brand identity is based on the company’s Symmetrical AWD setup.

Japan’s Best Car is reporting that the cost of making the Toyobaru AWD has become prohibitive as so only a rear-drive model is now planned. So with Toyota already scheduled to bring a rear-drive FT-86 to market, the only difference between the two models is likely to be slightly different bodywork and interior design.

Based on a modified AWD Legacy platform we still find this news hard to believe and as much as we’d love a more entry-level Toyota model, a high-powered Subaru would be plenty of fun and most likely worth the added cost.

See more Toyota and Subaru FT-86 news at FT86Talk.com

[Source: Best Car via 7Tune]

A year after its first showing on U.S soil and at the very same venue, Hyundai will officially unveil the production version of its flagship luxury sedan at the New York Auto Show. Hyundai has not said as much, but the full-sized luxury car is expected to keep the Equus name. What it will be missing, however, is that big hood ornament, although Hyundai is likely to offer it through dealers.

As a competitor to the BMW 7 Series, Lexus LS and Mercedes S-Class, the Equus is based on the Genesis platform, itself a supposed rival to cars like the BMW 5 Series. While Hyundai can’t reasonably expect to take on the Germans (not yet, anyway), the Equus is likely to steal away a few Lexus LS customers. And with the LS priced around $63,000, you can be sure the Equus will come in under that.

So what do you get in a Korean luxury car? Well, we think it’s quite handsome, plus it’s also very large. At 74.8-inches wide, it’s thicker than an S-Class or Lexus LS. The wheelbase is relatively short for this type of vehicle at 119.9-inches and with an overall length of 203.1-inches (just slightly longer than the long wheelbase LS460), don’t expect stellar handling. Under the hood the Equus gets the same 4.6-liter V8 found in the top-level Genesis Sedan. Making 380-hp it should deliver a 0-60 mph time of just over six seconds, with a quarter mile time in the low 14s.

Inside is where the real treats are, with every imaginable luxury available. On a Korean-spec model we had a chance to experience last year, there were massaging and reclining rear seats, seat-back mounted flip up tables, LCD screen DVD players and even a fridge. The Equus also had heated and cooled seats and privacy shades for the back and side-rear windows. One feature we particularly liked was that the side window shades pop up by pulling on the power window switch a second time – which reduces the overall number of buttons and switches in the cabin. In fact, we were surprised by the limited number of cabin-cluttering switches. Another notable feature is the fact that the front passenger seat can be adjusted from an armrest console in the rear – presumably for the comfort and convenience of executive types riding in the back. The interior materials are definitely high quality, although not quite what you might find in a Lexus LS. Then again, the interior of the BMW 750 isn’t quite what you’d find in a Lexus either. The excessive amount of wood trim certainly isn’t one of our favorite parts, but the genuine Suede headliner is.

Equus drivers will be able to appreciate high-tech features like a back-up camera (and front-facing camera), a blind spot monitoring system, active cruise control, a 528-watt 17-speaker Lexicon audio system and an adjustable air-ride suspension. Hyundai marketing boss Joel Ewanick said that by the time the Equus makes its way to the U.S. the suspension will receive a few tweaks. Normally this means “softening,” but Ewanick surprised us by saying that it will actually be made slightly stiffer than what is offered in Korea.

GALLERY: Hyundai Equus

For more on the upcoming 2011 Hyundai Equus see our video interview with Hyundai Motor America’s VP of Marketing Joel Ewanick after the jump:

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With some big changes coming to the Australian V8 Supercars series, Mercedes-Benz may be looking to get in on the action. Starting in 2012, the Australian NASCAR-meets-Touring Car series will follow after the U.S. stock car series by introducing a Car of the Future platform, essentially making the championship more of a spec series.

The new cars would trade the out-dated live-axle setup for a fully-independent one, while DOHC engines would replace the current pushrod ones – both updates that are more consistent with Mercedes’ high-tech engineering capability. A series dominated by Ford Falcons and Holden Commodores, the fan following has done great things for the domestic Australian automakers, who have seen a rise in sales of high-performance FPCs and HSVs. Mercedes, quite reasonably, isn’t prepared to sit back and watch other automakers take over the market for big V8-powered rear-drive sedans.

Adding to the speculation is word that Mercedes has commissioned the renowned Brock Engineering team to build a C63 AMG-based track taxi to take VIP guests around for hot laps ahead of this year’s races – no doubt drumming up interest and testing the waters.

The rule change doesn’t take place until the 2012 season, so there won’t be any Mercs competing in V8 Supercars until then, but when and if Mercedes does arrive, they might not be alone. Reportedly, both Nissan and Hyundai are examining the possibility of getting involved as well.

[Source: CarPoint.com.au]

Originally scheduled for use in the SRT and Ram Heavy Duty pickups, a newly developed 6.4-liter V8 gasoline engine is now only headed for high-performance car duty. According to Joe Veltri, Chrysler’s VP of product development, the new engine is designed for high performance and not the sort of physical labor that a truck requires. While no specifics have been provided on the engine, it is believed that the 6.4-liter Hemi (which is set to replace the 6.1-liter Hemi) will get Fiat’s Multiair variable valve timing technology as well as cylinder deactivation to significantly improve fuel economy.

Instead, Chrysler appears to be looking at ways to improve the 5.7-liter Hemi V8 currently available to give it added capability. While Veltri sees a need for continued availability of a gasoline engine in the HD trucks, Chrysler is also currently in talks with Cummins to produce a smaller diesel engine that could be used in both the standard Ram 1500 models and as an alternative base engine in the heavy duty trucks.

Being that Chrysler is now owned by Fiat and the importance European automakers place on diesel technology, we expect to see more diesels pop up in the Chrysler, Dodge and Jeep range in the future. A while it’s still not likely that diesel cars will catch on in North America, more diesel engines on the truck side could help Chrysler to become a more competitive player with the other big-two.

[Source: PickupTrucks.com]

Lexus is looking to bring back the IS SportCross – at least in Europe. The wagon body style of the original IS300 was a massive flop in North America, causing Lexus to eliminate the oddly shaped five-door from its product plans when it came around to building the second generation of cars.

With North Americans being early adopters of Lexus vehicles, Toyota’s luxury arm is now looking to make more of a push in Europe as its models finally start to become more popular there. Lexus now admits that its decision to drop a wagon model most likely slowed sales and the growth of the brand in a market where wagons are seen as the functional yet cool alternative to boring sedans.

As a result, Lexus is now looking to bring back the IS wagon for the third-generation model, due out soon. And according to a report by AutoCar, the wagon is likely only to be sold only as a hybrid (which sounds strange to us). This model would then help Lexus compete more strongly with the popular BMW 3 Series, Audi A4 and Mercedes C-Class wagons.

There’s no word about the wagon returning to North America and while the segment does seem to be growing with the Cadillac CTS SportWagon on sale now and the Acura TSX Sport Wagon coming, it’s still not clear if the U.S. market will accept luxury wagons in numbers significant enough for Lexus to bring the SportCross back to our shores.

IS-F SportCross anyone?

[Source: AutoCar]

Last week James Sikes made headlines when his 2008 Toyota Prius raced out of control of a California highway, with speeds approaching 100 mph. Sikes claimed this was a case of unintended acceleration, with repeated attempts to stop the car not working. A believable story considering Toyota’s long list of recent recalls, it now appears to be a hoax with Runaway Prius Guy quickly becoming the next Balloon Boy.

A story that was riddled with misinformation (several outlets erroneously reporting that a California Highway Patrol officer had to use his cruiser to slow the Prius), Jalopnik uncovered that Sikes is in debt to the tune of $700,000 – motivation to fake the incident in order to get a settlement or to take Toyota to court. Sikes has repeated that he has no interest in suing Toyota, but now his story has been completely called into question.

A federal investigation of the Prius, as reported by the Wall Street Journal, has shown that the condition of the car’s brakes does not support Sikes’ story, in particular his insistence that repeated and forceful use of the brake pedal did not slow the car. According to the Journal, the investigation, “didn’t find signs the brake had been applied at full force at high speeds over a sustained period of time.”

It’s not yet clear if the damage from this story can be repaired, but Toyota is on the march to repair its name, recently debunking the ABC News story and the work of professor David Gilbert of Southern Illinois University.

[Source: Reuters and Jalopnik]

Lotus is looking to make a massive push in motorsports, announcing its return to the IndyCar series just as a new Lotus Formula One team hits the track in Bahrain for the start of the F1 season. Teaming up with long-time Lotus partner and world-renowned engine builder Cosworth, the Lotus Cosworth team will be run by KV Racing Technoloy (KVRT). Piloting the characteristically-Lotus green and yellow Lotus-Cosworth IndyCar will be Formula One veteran Takuma Sato.

Lotus recently announced a partnership with Cosworth that will not only see the engine builder develop the company’s 400-hp Evora Cup Car engine, but also develop engines for street cars.

Lotus-Cosworth racing will first take the track at the Sao Paolo Indy 300 in Brazil on March 14, 2010.

Official release after the jump:

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Kia has just released a selection of photos of the all-new 2011 Optima (known as the Magentis in some markets), ahead of the car’s world premiere at the New York Auto Show. Simply put, it’s stunning, looking like a more premium German model with a touch of Ford Taurus muscle.

This new model is longer, lower and wider than the predecessor, which should result in a more comfortable ride, better handling and more interior room. Based on the same platform as the newly released Hyundai Sonata, the Optima doesn’t have quite the coupe-like look, with a rather high Lexus IS-like rear end. It features Kia’s “tiger” front end design with a flat nose and large grille, while LED lights are used on the bumper.

While no powertrain info has been provided, it’s safe to assume that much like the Sonata (reviewed here), it will receive a GDI (gasoline direct injection) 2.4-liter 4-cylinder with 198-hp and a six-speed transmission. In the Sonata that engine gets 22/35 mpg (city/highway). With Hyundai set to unveil a 250-hp 2.0-liter turbocharged Sonata and a Hybrid at the NY show, it’s likely that Kia will do the same either in NY or soon after.

Kia claims the new Optima will have class-leading safety and luxury equipment.

“It’s a car that people will simply not expect from Kia – and that’s exactly what we set out to achieve,” says Peter Schreyer, Kia’s Chief Design Officer. “The Optima embodies Kia’s confident new design direction. It’s a global car with individual appeal.”

AutoGuide will be on hand in New York for the official debut, with live coverage starting March 31st.

GALLERY: 2011 Kia Optima (Magentis)

Official release after the jump:

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With a second-generation Maserati Quattroporte on the horizon, it now appears as though the next iteration of the luxury sport sedan will spawn other models, including some Alfa Romeo products. According to a report by InsideLine, the new architecture will use a significant amount of aluminum to keep weight to a minimum. Along with the underpinning the QP, the new structure is also slated for duty as the next GranTurismo and convertible models.

It comes as little surprise that this chassis is likely to be used for a second generation Alfa Romeo 8C, considering the current 8C is considered to be a tremendous success, selling extremely well and proving that Alfas can command high dollars. Currently the 8C is built by Maserati for Alfa at its Modena factory and there is reportedly space for another small production run of vehicles which would be based on the same platform and most likely be sold in the U.S. to help with Fiat’s planned launch of the Alfa brand in North America.

What we don’t know is if this might be a special edition coupe or convertible model or possibly a full-on Alfa sedan, taking an improved QP platform and adding Alfa’s trademark brand of Italian style.

[Source: InsideLine]

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Corvette Racing has just released the first part of a 12 part series, chronicling the team’s build up and follow-through for the 2010 American Le Mans Series. The first video in the series doesn’t waste any time dealing with Corvette Racing’s crushing finale at Laguna Seca, where contact by one of the Flying Lizard Porsches sent driver Jan Magnussen into the wall, just seconds from the finish line. (see below).

Crew Chief Dan Binks expresses his anger, but says that the best way to avoid that situation in the future is to build a car that’s so far out front, this problem won’t occur. Corvette thinks they’ve got such a car, but this year the competition is even tougher, with the GT1 and GT2 classes amalgamated into a single GT class. Plus, for 2010 (like in 2009) the new C6.R is much more closely based on the street car and new for 2010 is a smaller 5.5-liter V8 engine.

We’ll be sure to keep an eye on how the new car stacks up, with the 2010 ALMS Season beginning with the 12 Hours of Sebring, March 17-20.

See after the jump for a video of last year’s season ending crash.

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