While the trend for luxury cars in Europe and North America seems to be heading towards smaller vehicles, that’s not the case in China. The Chinese think that bigger is better and the Germans certainly aren’t going to argue with them. Case in point: the scheduled debut of the extended wheelbase BMW 5 Series at the Beijing Auto Show later this month.

Developed in Germany but set to be manufactured in Shenyang, China specifically for the Chinese market, we’re surprised at how the 5 Series Li looks so well proportioned. For those who don’t know, this isn’t the first extended-wheelbase 5 Series either, with BMW offering the previous gen model in a limo-version.

The wheelbase is 5.5-inches longer than the standard model, giving the 5 Series Li a total length of 198-inches and a wheelbase of 122.4-inches. BMW will offer the extended wheelbase 5 Series as a 523Li, powered by a 204-hp 2.5-liter inline-six; a 528Li, powered by a 258-hp 3.0-liter inline-six and a range-topping 535Li with a turbocharged 3.0-liter inline-six making 306-hp.

GALLERY: BMW 535Li

Official release after the jump:

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With Ford just about ready to launch its new Fiesta in North America, the American automaker is celebrating the car’s success overseas where it has just surpassed the perennial top seller, the VW Golf, to become Europe’s best selling car. While Ford somewhat erroneously reported last week that it had topped VW in overall sales, these new numbers for the Fiesta come from an independent source: JATO Dynamics.

Ford sold more Fiestas in March than VW sold Golfs, bringing it into the lead in year-to-date sales as well. In March Ford moved 68,630 Fiestas – an impressive 11,785 more units than VW managed with the Golf. The sales increase for March is a staggering 25.8% jump. The year-to-date total is now 140,496 Fiestas compared to 135,048. And it’s not like VW is suffering either, with VW’s year-to-date Golf sales up 10.4 percent.

The VW vs Ford rivalry looks to be one that will continue throughout the year and we’ll be sure to keep an eye on monthly and quarterly sales totals.

[Source: JATO via Carscoop]

What’s smaller than Micra? Nissan is about to answer that question with news that the Japanese automaker will build a vehicle to slot in underneath its new Micra sub-compact (above) and rival Indian automaker Tata’s Nano.

Even more surprising than building the car is the revelation that Nissan believes it can actually make money doing so – despite the fact that the new mini car will retail for roughly $3,000. While the Nano starts at roughly $500 less, most Nano buyers opt for the LX model which retails for $4,183.

Designed for the Indian market, the car will be built in India with almost all parts coming from inside the country as well – helping to cut down on labor and shipping costs. Nissan has also partnered with Indian three-wheel vehicle manufacturer Baja Autos to put the project into action. The mini-Micra is expected to hit the market by 2012.

Nissan has big plans for the Indian marketplace, having sold just 360 cars there last year, but with plans to move as many as 100,000 units by 2013.

[Source: Automotive News via MotorTrend]

Porsche’s facelifted GT2 model has been busted lapping Germany’s famed Nürburgring without any camo to speak of. That’s not surprising as the GT2′s updates are more performance focused than aesthetic. Set to launch in 2012, the mid-cycle update will include some important changes to the brand’s top performer.

Power output is likely to get a boost of 20 or so horsepower thanks to direct-injection technology. This should put the total number closer to 550-hp. The 0-62 mph time should also drop below 3.7 seconds, but don’t expect it to match the Turbo S’s 3.3 second time – due to the latter having the sprinting advantage of AWD.

A six-speed manual transmission is likely to remain the only tranny available, although there’s a possibility Porsche could offer the GT2 with its 7-speed PDK auto-box.

Cosmetic changes are scheduled to include slightly revised bumpers, and a new exhaust pipe design.

For full spy photos, see the link below:

[Source: MotorAuthority]

More bad news from the “Icelandic Volcano” front. In addition to thousands of travelers stranded while trying to fly into or out of Europe (including this author’s parents, stuck in Paris), The Associated Press reports that BMW may have to shut down production of its Spartanburg, SC facility, which produces the X5 and X6. According to the report, BMW ships transmissions and other vehicle components from Munich to South Carolina via commercial airlines. If these planes stay grounded for more than two more days, BMW will not have enough parts to assemble the Sport/Utility/Activity what-have-you’s.

Soccer Mom’s all over the northeast are currently holding a candlelight vigil for the X5, but so far, prayers for the X6 remain silent.

[Source: The Associated Press]

Got a couple of speeding tickets under your belt? Then you’re not going to want to settle in Louisiana, which can now boast that it has the highest car insurance rates in the U.S.

These findings are based on a new Insure.com national survey that collected average auto insurance rates for more than 2,400 vehicles, based on 10 ZIP codes per state and rates from six large carriers, and the averages were calculated nationally as well as for each state. The average insurance premium in Louisiana is $2,510.87, followed by Michigan, which comes in at $2,098.87. If you’re looking to save a few bucks, move to Maine where the insurance premium is just $902.85.

So why is it so expensive to drive in Louisiana? According to some insurance experts, it’s because of the state’s court system. Only cases with claims in excess of $50,000 receive a jury trial, so there are a lot of settlements that come in at $49,000. That’s great news for those seeking a claim against an at-fault driver, but bad news for the insurance companies that have to pay the tab. Added to this legal quagmire is the fact that Louisiana has had higher bodily injury rates and more lawsuits per capita than most states.

To keep there rates low, Maine has a few policies in place to keep cash in your pocket. According to Chris Condon, incoming president of the Maine Insurance Agents Association, this is because the average number of annual miles driven is low, as is commuter mileage, and its highways are not that busy.

Top 10 Most Expensive States for Car Insurance

State                                     Average Premium

1. Louisiana                             $2,510.87
2. Michigan                              $2,098.29
3. Oklahoma                           $1,869.39
4. Montana                             $1,857.96
5. California                            $1,774.41
6. South Dakota                     $1,772.83
7. Washington, DC                $1,753.19
8. Georgia                                 $1,751.42
9. Illinois                                   $1,679.15
10. Connecticut                        $1,678.90

Top 10 Least Expensive States for Car Insurance

1. Maine                                   $902.85
2. Vermont                              $968.58
3. Ohio                                      $999.86
4. Wisconsin                            $1,010.93
5. New Hampshire               $1,011.23
6. Iowa                                      $1,039.04
7. Massachusetts                   $1,043.80
8. North Carolina                   $1,130.45
9. Arizona                                 $1,152.50
10. Tennessee                         $1,170.12

[Source: Insure.com]

Fiat chairman Luca di Montezemolo will step down from his primary position at the Italian automaker today ahead of a company restructuring that will begin tomorrow. He will, however, retain a position on Fiat’s board of governors and will remain the Chairman of Ferrari. Fiat CEO Sergio Marchionne has announced he will draw out the automaker’s 5-year plan at that time.

It is believed Montezemolo is leaving the auto industry to pursue a career in politics. He first began with the company back in 1973 with the Ferrari Formula One racing team and will be succeeded by Fiat vice chairman John Elkann.

But Montezemolo’s departure is hardly the biggest shift in Marchionne’s 5-year plan, which is set to include a spinoff of the company’s automotive unit from its truck unit. According to a report by Automotive News, this spinoff will not only generate a cash infusion but would allow Fiat to focus on future alliances with other automakers. It has been rumored of late that Marchionne may be eying France’s PSA Peugeot Citroën as a possible partner or acquisition.

[Source: AutoNews and AutoNews2]

Kia will build a wagon version of the newly unveiled Optima sedan for the European market and is considering a Coupe. In an interview with the U.K.’s AutoCar, top Kia designer Peter Schreyer confirmed the wagon (or Estate as its likely to be called in Europe) and hinted at a coupe.

“I would love to do station wagon and coupé versions of the car. The station wagon would only really work for Europe but the coupé would work in the U.S.,” he said.

A coupe model wouldn’t be as surprising as it seems at first, as the car would have competition from the likes of the Honda Accord Coupe and Nissan Altima Coupe. And with Kia announcing a new 274-hp turbocharged 2.0-liter 4-cylinder engine in the sedan at the New York Auto Show, it would definitely make for an attractive package.

And with Kia and Hyundai sharing platform, does this mean a Sonata Coupe and Wagon are on their way too?

GALLERY: 2011 Kia Optima

[Source: AutoCar]

Ken Block might not be driving for Subaru any more, but he’s still sponsored by Monster Energy Drink and is still up to his old tricks. Ahead of its debut later today, Ken Block’s Ford Fiesta Monster Rally Team has released a teaser of Gymkhana Three – featuring the new Ford Fiesta rally car. The clip doesn’t show much and frankly were half worried the full video won’t live up to the hype. In fact, we’re pretty sure it might flop, just because the whole Gymkhana thing is a little overdone right now.

Still, we look forward to being wrong and to enjoying some automotive acrobatics.

The video is set to make its debut at 8 p.m. on the West Coast.

See after the jump for the teaser video, plus Block’s past Gymkhana stunts:

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Nissan has announced that it will begin taking reservations for its new Leaf electric car today. The Japanese automaker sent out emails to the 115,000 people who signed on to receive more information, giving them first crack at owning a production electric car. Those who wish to put their name on the list will be asked for a $99 reservation fee (which is refundable). Those who haven’t pre-registered will be able to add their name to the list on May 15th.

Once a reservation is made, Nissan has said it will provide a reservation number with more info by June 30th. Those with additional questions can call the Nissan Leaf line at 877-664-2738.

Pricing for the Leaf is set at $32,780, and the car is eligible for a $7,500 federal tax credit.

But buying a Leaf isn’t just a matter of dollars and cents as potential owners must live in an area where Nissan has worked with local authorities to build an electric-car infrastructure. The regions include: Phoenix-Tucson, Oregon, San Diego, Seattle and Tennessee.

Nissan insists the Leaf is not a test car, but a real production model and seems to be proving doubters wrong, moving ahead with its electric car while competitors like the Chevy have yet to even announce pricing for the Volt.

The Leaf can travel up to 100 miles on a single charge, and can be charged up to 80 percent in just 30 minutes using a special quick charger. Traditional charging takes about 8 hours. Power for the car comes from a lithium-ion battery pack with 80kW/280Nm, (107-hp and 207 ft-lbs of torque).

Deliveries of the first Nissan Leaf electric cars are scheduled for December of this year.

Official release after the jump:

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