Along with a long-rumored hybrid technology partnership between Toyota and Subaru, Japan’s largest automaker is also preparing to supply Subaru with a new sub-compact model. Japan’s Nikkei is reporting that the new model will be based on the Toyota Ractis, but will be built entirely by Toyota.

The deal seems to be part of a continued partnership between the two automakers, with long-standing rumors of a shared sports car, referred to as the FT-86 or FR-S. Of note, Toyota supplies the Scion xB to Subaru, where it is sold in Japan as the Dex. Toyota also owns a 16.5 percent stake in Subaru parent company Fuji Heavy Industries.

Initially Toyota will supply roughly 10,000 models to Subaru each year, using the current Toyota powerplants, including either a 1.3-liter or 1.5-liter 4-cylinder. The move by Subaru is seen as a reaction to increasing trends towards small vehicles. It’s also likely a way for Subaru to meet increasingly strict fuel economy standards.

There are no plans for Subaru to offer this model in North America, although we have to think that eventually Subaru, like all other automakers, will have to offer sub-compacts globally in the near future.

[Source: Nikkei via Green Car Congress]

The GMC Granite has been given the green light for production. No… wait… it hasn’t. According to a report by Motor Trend, a source at GM announced that the funky Scion xB-like urban MPV based on the Chevy Orlando will get the go ahead. After publishing the report, GM contacted MT to inform them that the production light is not green, but more yellow – if not downright red.

Did MT just jump the gun? Or perhaps someone at the General slipped up and prematurely announce this new model for production long before it is ready. After all, GM hasn’t even launched the Chevy Orlando yet and the Granite is sure to come after it’s Chevy brother.

Regardless, we have to think that after the overwhelmingly positive reaction the Granite received at this year’s Detroit Auto Show, well see it in dealerships before long and unlike the Orlando, the Granite will most certainly be sold in America.

GALLERY: GMC Granite

[Source: Motor Trend]

Even a decade after Bentley and Rolls-Royce split up, most folks still thing the two automakers are related. The reality, however, is quite the opposite, with Volkswagen owning Bentley and BMW claiming Rolls-Royce, the two luxury British marques compete in a small segment. But that is about to change.

While it’s obvious that Bentley still has its sights on more traditional buyers with new models like the Mulsanne competing against traditional Rolls-Royce models, the future for Bentley will focus more on performance. According to Bentley product boss Richard Leopold, the new direction has been decided as much by the corporate bigwigs as it has by Bentley’s customers. You see, Bentley currently rolls out a new model every 12 to 18 months and most recently the high-performance models (like the new Bentley Continental Supersports Convertible) have been a real hit.

The reason Bentley has such a short product cycle s because the company determined that its customers only drove their new Bentley for just over a year. As a result, it needs to constantly deliver new and exciting products to keep fickle millionaires interested.

Bentley is now hearing from its customers that they like the new high-performance machines and so the automaker will harken back to its roots as a performance company. (Might this suggest a return to motorsports)?

The first big idea of Bentley’s new direction will come in 2012 with the replacement of the current Continental. Leopold wasn’t willing to divulge any info on that new model, but if he’s taking request we’d easily suggest a lighter curb weight and more dramatic styling.

In the mean time, Bentley will continue to offer new variants of the same models and we expect to see some even more exciting performance-oriented luxury cars. Both Coupe and Convertible versions of the new Mulsanne are also expected to arrive in the next few years.

[Source: AutoObserver]

The next-generation (C7) Chevrolet Corvette will get a new 5.5-liter small block V8, making roughly 440-hp. According to sources tapped by Motor Trend, the new engine is already undergoing testing. In fact, GM has already given a related version of this new 5.5-liter motor plenty of test time in its new GT2 Corvette Racing C6.R cars, competing in the American Le Mans Series.

The new small block V8 is reported to have both direct-injection, as well as a new combustion system design – possibly a hint that GM is planning variable valve timing for the venerable pushrod V8.

While the power increase is just 10 ponies above the current V8, fuel economy should be improved significantly and we expect that through the use of lighter weight materials and possibly some exciting new transmission changes, acceleration will no doubt be improved upon as well.

And while we’re excited to see what the General has in store for the C7 Corvette, rumors suggest this model is somewhat of a post-bankruptcy stop-gap as GM plans a major overhaul of the Corvette for it’s 8th generation model.

[Source: Motor Trend]

It seems as though BMW’s X6 has developed a following in certain parts of the world and may just have created a whole new segment after all. Already we’ve seen Acura jump into the mix, with the ZDX. Now, it appears as though Mercedes will follow with a new model, that Auto Zeitung reports, will be called the Geländecoupé – or GLC for short.

Smaller than the X6 this new model will actually not compete in the same segment, but will mimic the style of the larger Sport Activity Vehicle. Instead it will bring the coupe-styled crossover slightly down-market, competing with a rumored BMW X4 in the future. Both rear-drive and AWD versions will be available, using powerplants from both the C and E-Class models.

If in fact the reports are true, don’t look for the GLC until at least 2014.

[Source: AutoZeitung via eMercedesBenz]

On Sunday, June 20th, Hernando County, Florida resident Christopher Bishop was inspecting the underbelly of his Ford F-150 for oil and fluid leaks. However, before crawling underneath, Bishop, 43, had left the driver’s door open and the transmission in neutral. At the time, his pet, a hyperactive Bulldog named Tassey was also roaming around free while Bishop was underneath the truck. Suddenly, Tassey bounded into the front seat of the pickup and started jumping around, enough in fact to bang the truck into gear, causing it roll forward and over the left side of Bishop’s body as he lay underneath.

According to a police report filed by the Hernando County Sheriff’s Office, Bishop was able to get up, jump into the F-150 and stop it before it hit the fence next to his mobile home. He managed to shut the  truck off and go inside his house, but after several hours of severe pain, finally placed a call to the hospital and was dispatched to Pasco Regional with non life threatening injuries. Asked why he waited so long to seek medical assistance, Bishop replied, “I don’t like doctors.”

[Source: St. Petersburg Times]

That Hello Kitty sure does get around. She’s on everything – cell phones, socks, backpacks, and now… motor oil.

This is no hoax – AGIP, a subsidiary of Italian oil company ENI SpA, has combined forces with the company that owns the rights to the Hello Kitty name to bring you Hello Kitty motor oil.

For all you Hello Kitty collectors out there, some bad news: this motor oil will be distributed exclusively in Japan by Showa Boeki. The canister will be adorned with the iconic kitten, complete with her cute red bow and frisky whiskers. A three-liter can will retail for $33.

We’ve got to hand it to the brand – they really are taking every avenue to make all the money they can. But seriously – motor oil? We wonder if it’ll make your engine purr.

[Source: Top Speed]

Now here’s something we’re digging from bumper to bumper. Sport-Wheels out of Germany has built one real clean and killer looking Volkswagen Golf R that they’ve called “The Bull.” It pushes out 330-hp from the factory 270-hp and backs it up with some simple yet functional modifications on the outside and inside the wheel wells.

In addition to the 60-hp upgrade, torque is increased from approximately 260 ft-lbs to 330 ft-lbs, giving the Golf plenty of go from the 2.0L TSI engine. This is achieved through Sport-Wheels’ own ECU upgrade ($975) and turbo-back exhaust system ($2,380). The Golf is lowered with a set of KW V3 coilovers ($1,890) offering both height and dampening adjustability.

On the outside, Sport-Wheels offers a set of 20-inch OZ Ultraleggera HLT wheels in a 8.5-wide variety wrapped with 235/30/20 tires. Standard flat black or silver finish is available for around $3,500 while the interesting glossy red finish is available for close to $4,950.

We’re just loving the simple combination of proven horsepower bolt-ons, a true set of coilover suspension and fitting wheels to set this Golf apart from the crowd. And it’s all done under a reasonable budget!

[Source: E Motor Auto]

GALLERY: Sport-Wheels Volkswagen Golf R Bull

Toyota was once famous for its “Kaizen” methods of continuous improvement, whereby incremental changes throughout the product development and production process helped make their cars better. Every business school student has heard stories about Toyota plant employees being given authority to stop the production line so that quality issues can be solved – and we’re about to show you the total opposite of that.

To be fair, the Dacia cars are built to a price, rugged machines intended to bring personal transportation to less fortunate parts of the world. Inevitably, some compromises must be made, and as we can see in this video, quality control is one of them. When the doors don’t quite close properly, the best method is of course, brute force.

Hit the jump to see the video

[Source: RideLust]

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Now that BMW is truly embracing the technology behind their twin turbo applications, it’s no surprise that there will be an entirely new generation of M-powered vehicles that will no longer sport large displacement, naturally aspirated V8 and V10 engines. Nowack Motors, who we checked out before with their Mini Coopers, is known for tuning BMW M engines, and their newest product is impressive.

Named the N635S 5.8 Hans Nowack Edition, the 5.0L V10 pushes out 718-hp over the factory 507-hp and revs up to 9000 rpm. This engine conversion is available for all the M5s and M6s sporting the 5.0L V10, and Nowack offers a 12 month warranty with no mileage constraint for those opting to have the work done. So while BMW is pushing ahead with their twin turbo setups and abandoning the joy of torque-heavy V10s, Nowack motors continues to embrace and give current owners a new option to compete with the new technology.

There is unfortunately not a ton of details on what goes on with the conversion other than a remapped ECU and a pair of intake air collectors that are match painted to the car. But we’re going to guess that there’s tons of bottom end work and head work. Then again, it can’t be that difficult to find a whole lot of horsepower once you crack open a V10 can it?

The official press release available after the break.

GALLERY: Hans Nowack Edition BMW M5

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