Consumers in China and the United States are fueling the fortunes of German luxury car makers like Mercedes-Benz, BMW and Audi. Buyers in both countries are going wild for the re-designed Mercedes-Benz E-Class, BMW 5 Series and Audi A8.

“The Chinese appetite for German nameplates is absolutely bottomless,” Sascha Gommel, a Frankfurt-based analyst with Commerzbank AG, told Automotive News. “There are more than 900,000 millionaires in China and many of them are bursting to show off their wealth.”

BMW’s all-new 5-Series is sold out across the world, while Mercedes-Benz is developing a long-wheelbase E-Class just for the Chinese market and hiring 1,800 temporary workers to help meet demand for its vehicles. Audi has also reported strong demand for their new A8 flagship.

“German luxury cars are a synonym for status, comfort and safety,” Gommel said. “Those are the traits you want to embody when you’re courting future partners for business. In China, buying a German luxury car is seen like buying a ticket to future wealth.”

[Source: Automotive News]

Volkswagen CEO Martin Winterkorn is launching an ambitious plan to triple market share in the U.S. by 2018, with an electric vehicle and an all-new range of products designed with the U.S. market in mind at the forefront.

An electric car based on the Golf or the new Up city cars will by sold by 2013, while a hybrid Jetta and Touraeg will bow by the end of 2011. “Our goal is clear and ambitious,” Winterkorn told Automotive News yesterday at VW’s research laboratory in Palo Alto, California. “Volkswagen will be the automaker to mass produce the electric car for everyone.”

Volkswagen’s U.S. operations were shaken up by the departure of Stefan Jacoby, a 25 year veteran of VW. Jacoby’s exit left a large hole at the top of the U.S. subsidiary. Others think that VW North America and Winterkorn’s leadership will mean that the transition will be seamless.

“I don’t doubt it’s a loss,”  Mike Tyndall, an automotive specialist at Nomura Securities in London, told Business Week. “In some ways the cake has been baked and it’s almost ready for the eating.”
[Source: Automotive News, Business Week]

James May, one third of the popular BBC show “Top Gear” and the presenter known as “Captain Slow”, was awarded an honorary doctorate at his alma matter of Lancaster University.

May, who graduated with a degree in music, took a somewhat different path, despite being a passionate musician. Stints at major car magazines, the Channel 4 television network and even the British civil service all followed his graduation.

“It’s very nostalgic, what with work commitments I haven’t been back for 10 years,” said May. “I walked round the campus and it was very emotional, it doesn’t really come flooding back but, more like a wall covered in posters, it hit me instantly.”

Top Gear has returned for their 15th season with presenters May, Richard Hammond and Jeremy Clarkson.

[Source: BBC]

In a move that’s hardly shocking to North Americans, Range Rover insiders told Autocar that the all-new TDV8 diesel engine will not be offered in North America.

While the new TDV8 offers significant gains in emissions and fuel consumption over the previous diesel unit, it still fails to meet U.S. emissions standards, which are in line with the Euro 6 standard set to appear in 2014. Europe is still using the Euro 5 standard, which does not meet U.S. requirements. Fortunately, the next Range Rover TDV8, set to bow around 2014, is listed as “very likely” to come to the U.S. then”.

[Source: Autocar]

While there’s a lot of excitement building surrounding the return of Fiat to the U.S. and the launch of the Fiat 500, enthusiasts, auto journalists and car snobs alike have been patiently awaiting word that the Italian automaker will also roll out a line of Abarth branded models. Finally, we can confirm that we won’t have to suffer disappointment and can instead rejoice behind the wheel of the Abarth 500.

While the Fiat 500 is slated to get roughly 100-hp, the Abarth tuned model will get a turbocharged version of the 1.4-liter making roughly 135-hp. And when it arrives here in North America, the new Abarth 500 may get Fiat’s MultiAir technology using electronically controlled intake valves. This model should deliver a 0-60 mph time of roughly 7.6 seconds – but with larger wheels and tires, not to mention suspension upgrades, the Abarth model is more about the apex than the straightaway.

In addition, Abarth is reportedly working on its first-ever ground-up vehicle: a coupe, based on the 500, but inspired by the 1959 Zagato Abarth 750.

Better still Abarth models will likely come with the higher-performance Essesse tuning packages which boast either 163-hp and 194 ft-lbs of torque, or 178-hp and 199 ft-lbs of torque. John Cooper who?

[Source: InsideLine]

Get more Fiat 500 news and info at Fiat500Owners.com

Let’s be honest, this might not qualify for news were it not for the gallery of photos Lexus released to help announce changes to the 2011 IS250/350 F-Sport package. Along with a long list of upgrades for the 2011 lineup, that includes the introduction of the IS350 AWD model, Lexus has released an updated F-Sport Package with light weight 18-inch wheels, suspension upgrades, tighter steering, a new front lip spoiler and a rear decklid spoiler. There’s also a dark front grille insert.

While F-Sport Accessories can be purchased individually, the F-Sport package includes special F Sport seats with microfiber inserts, as well as F-Sport badging on the steering wheel, shift knob and doorsill plates.

Plus, those who opt for the package can now also get their F-Sport model in Ultrasonic Blue!

GALLERY: 2011 Lexus IS250/350 F-Sport Package

Official release after the jump:

Continue Reading…

Lexus has released a very long list of updates and price changes to its lineup of vehicles for 2011, with a few important changes tucked away in the lengthy press releases. The biggest news is the introduction of a new IS350 AWD model. Previously Lexus only offered an all-wheel drive 250 version of the IS, but now customers can enjoy the power and traction. No 0-60 mph times were released (it’s Lexus after all) and its not clear if the added traction will provide any acceleration improvement over the RWD model’s 5.3 second time, especially considering it will add weight. Still, it’s nice to have the option of the more powerful 3.5-liter engine with the added grip. Pricing for the IS350 AWD stats at $41,905, a bump of $2460 over the rear-drive IS350

All 2011 IS models get new grilles and other cosmetic tweaks that include LED running lights and new 17- and 18-inch wheels.

As for the IS-F, it gets updated power steering and suspension for 2011. The “Sport mode” button is also now found on the steering wheel, rather than on the center console.

Also of note is a strange change for the 2011 ES350, which gets a revised engine mapping setup to run 87 octane fuel, rather than the premium stuff. Engine output is downgraded slightly as well, rom 272-hp and 254 ft-lbs of torque, to 268-hp and 248 ft-lbs of torque. The advertised 0-60 mph time has also risen, from 6.8 seconds to 7.0 seconds, while fuel economy remains constant at 19/27-mpg (city/highway).

On a safety note, for 2011 all non-hybrid Lexus models will include a brake override system that cuts power if the gas and brake pedals are press simultaneously.

Yesterday it was announced that the RL would be cut from the Acura lineup. But today, Honda officials in the U.S. are saying “not so fast.”

A report in Japan’s Nikkei business paper cited sources inside the automaker who said the Legend (as its known in Japan) would be cut from the lineup globally. The news actually came as little surprise, with the RL’s sales dismally low as Acura made its flagship vehicle redundant by offering the same engine and drivetrain in the only-slightly-smaller TL SH-AWD model. In fact, Acura has sold just 872 RL models compared to the 5,650 Lexus LS models sold and the 6,602 Infiniti M models sold.

In a statement released yesterday Honda’s luxury arm took the position that, “This morning erroneous media reports began to surface suggesting that Acura’s RL model would be discontinued. These reports are untrue. The RL continues to be the flagship for the Acura brand and we have no plans to discontinue it.”

This news actually comes as more of a shock than yesterday’s report, for the outlined reasons above, as well as the fact that the lack of a RWD layout and V8 engine have relegated the RL to the bottom of the luxury heap. It’s possible that this is just a PR effort to keep the RL badge alive so Honda dealers can move the remaining stock from their lots. However, Acura has been rumored to be developing a V6 hybrid system for the next-generation RL that would give the model V8-like power and excellent fuel economy.

[Source: AutoWeek]

It’s not news that Audi built the A1 to compete directly with the MINI Cooper, or that BMW is upping the ante with a little extra competition in the form of a new front-drive 1 Series hatchback (for Europe only). But now it appears as though the two German rivals will take their small car tit-for-tat further, extending into the real of compact, and even sub-compact crossovers.

With BMW’s new X1 model and the recent release of the MINI Countryman, Audi’s smaller Q3 model is set to debut soon – possibly as early as this Fall’s Paris Auto Show. But Audi isn’t going to stop there with reports suggesting a Q1 model could also be in the four-ringed automaker’s plans. Based on the VW Polo/A1 platform, this small soft-roader could get a version of the 178-hp 1.4-liter twincharger engine.

And with the A1 most certainly a European exclusive (at least fur its first generation) there’s word that the Q3 could be sold in North America after all.

[Source: Car & Driver]

Get more Audi A1/Q1 news and info at AudiA1Forum.com

Lamborghini is considering a significant product expansion with sources indicating a new entry-level V8-powered model is on the way, as well as an SUV.

As the Gallardo has become increasingly powerful, and expensive, Lamborghini may look to appeal to a wider group of customers with a V8-powered sports car. This move seems part of a larger trend amongst makers of exotic and sports cars to sell more product at the lower end of the market. After all, it was the same philosophy that spawned the Gallardo in the first place and it has easily become Lamborghini’s most successful model ever. That being said, a V8-powered Lambo, with the engine likely coming from Audi, seems like a strong possibility.

Lamborghini also has a strong history of V8 models, including the Urraco, Silhouette and Jalpa.

As for the SUV, well, this certainly isn’t the first time rumors of a successor to the LM. This time, Car & Driver is reporting that Lamborghini sources “strongly hinted” that a new LM model would arrive, based on the same architecture that underpins the Porsche Cayenne, VW Touareg and Audi Q7. Groan…..

[Source: Car & Driver]