When Chrysler went through its unpleasant bout of restructuring in June of 2009, it shut down 789 dealerships in an effort to reduce its dealer network by 25%. Now, 64 of those dealers are filing suit against the United States Treasury Department, claiming that the government terminated those dealerships and violated the U.S. Constitution.

More specifically, the suit alleges that the government violated the Fifth Amendment–stating that property cannot be taken away and used for public purposes (restructuring a company run partially by taxpayer money) without adequate compensation–or in this case, $130 million in damages.

[Source: Autoblog]

Mazda‘s announcement regarding a SKYACTIV diesel engine in future products had car geeks hoping for a diesel Mazda3, but it looks like the oil-burner will actually make an appearance on the mid-size Mazda6, putting it squarely against the updated Volkswagen Passat, which will be available with a TDI diesel engine.

While details on the SKY-D engine have been sparse, the engine will make 182 horsepower and 310 lb-ft of torque, substantially besting the Volkswagen unit’s 140 horsepower and 236 lb-ft. Although the SKY-D will only be available with a 6-speed automatic, it should be quite the machine on the highway, where the massive torque will allow effortless passing while returning the kind of mileage numbers that only small compacts can hope for.

[Source: Ototrendsinfo.com]

The American Council for an Energy-Efficient Economy, a non-profit group sponsored by foundations, electric utilities and government agencies, released its list of the Greenest Vehicles, and the Honda Civic GX, a perennial favorite, continued to come out on top for the 8th consecutive year.

In second place was the all-electric Nissan Leaf, while the much maligned Smart ForTwo came third. The Chevrolet Volt was way down the list at number 13. While this is surprising at first glance, the Council takes other factors into account beyond the usual tailpipe emissions and fuel economy. How the electricity is generated, for example, is taken into consideration since coal-fired energy is substantially dirtier than hydroelectric power.

“We consider not just what emissions are coming out of the tailpipe while the vehicle is running,” said Therese Langer, the group’s transportation director, in an interview with the New York Times. “The E.P.A. would consider the Leaf a zero-emissions vehicle because electric vehicles have zero tailpipe emissions,” she said. Disposal of the lithium ion batteries is also taken into account due to its toxic nature.

[Source: The New York Times]

Hit the jump to see the full list

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While rumors of the new BMW sub-brand have been floating around for months, February 21st has been marked as the official announcement date for details the sub-brand, and the apparently revolutionary MegaCity electric vehicle.

Many suggest that the new sub-brand will be a re-imagining of the Isetta microcar of nearly a half century ago, and use some of the advanced materials that the Megacity also uses. Smaller internal combustion engines are a possibility, with the MegaCity setting itself apart by using the all electric drivetrain used in the BMW ActiveE.

[Source: WorldCarFans]

Rep. Betty McCollum (D-MN) has been campaigning for the removal of the U.S. Army’s sponsorship of a NASCAR entrant in the Sprint Cup Series, a project that costs the Pentagon about $7 million dollars per year.

While McCollum has fielded irate calls from those who are angry about her proposal, the threat, delivered via fax, was the first of its kind.

For years, the Army has sponsored a NASCAR team as a means of getting the message out about the armed forces, and the career prospects it has to offer. At first glance, it seems like a perfect fit – with NASCAR’s supporters leaning heavily Republican, and supportive of the kind of values that often draws people to the armed forces.

Bill Harper, McCollum’s chief of staff, noted the irony of NASCAR fans, who he assumes to be Republican, and their complaints, when Republican supporters are calling for budget cuts to preserve America’s financial integrity. “We’ve heard innumerable times that the Republicans were elected to send a message from the people that we should stop spending money,” said Harper. “And yet the people who sent that message want us to spend $7 million for a sticker on a NASCAR.”

[Source: Talking Points Memo]

Novitec Rosso has taken Ferrari‘s front-engine California and outfitted it with a supercharged powerplant that brings performance to 606-hp (from 460-hp) and 444 ft-lbs of torque (from 357 ft-lbs) out of the 4.3L V8. The supercharged powerplant will be available from Novitec Rosso for the special Race 606 model and any standard California.

Along with the supercharger is a water-to-air intercooler, a new intake manifold and larger fuel injectors to ensure the 4.3L V8 stays adequately fuel-fed with the additional boost. Novitec then outfits the California with their stainless-steel exhaust system sporting four black-coated tips.

Horsepower wasn’t all that Novitec was after with the Race 606 California, as they took Ferrari’s famed exotic to the wind tunnel in order to develop some efficient and attractive aerodynamic pieces to complement the package. With essential pieces made from lightweight carbon fiber, the aerodynamic package includes front and rear spoilers, rear diffuser, rocker panel blades, side air outlets on the front fenders, mirrors covers, rear molding, hood center piece, radiator grille, and the outer skin on the folding hardtop and taillight surrounds.

For wheels, Novitec has outfitted the California with their three-piece NF3 wheels featuring a matte carbon fiber coating. The setup used on the Race 606 is a staggered set of 21×9 and 22×11.5 matched with Pirelli P-Zero rubber. Lowering the vehicle 1.37-inch is Novitec’s lowering kit which also allows the front end of the vehicle to be raised 1.57-inch to help navigate speed bumps.

Lastly interior upgrades can be specific through Novitec to further customize your California or Race 606 model.

Official press release available after the break.

GALLERY: Novitec Rosso Ferrari California Race 606

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Volkswagen has unveiled its new Tiguan ahead of its Geneva debut in March. The small SUV gets new front end styling that brings it in line with the rest of the new Volkswagen lineup.

The Tiguan also gets three new engines in Europe, for a total of seven: four gasoline engines and three diesels, including the BlueMotion engines that now get stop/start technology for further fuel savings. The Tiguan will come with a seven-speed DSG gearbox as an option

Inside and out, the Tiguan can now be ordered with two trim levels that VW optimistically calls “Track and Style” and “Sport and Style,” aimed at on-road and off-road driving, respectively. On the technology front VW is pulling no punches by adding fatigue detection, Lane Assist, and perhaps most importantly, the XDS electric differential lock.

Germans can already order the Tiguan now, at a price of 24,175 Euros. The rest of Europe can take delivery in August, and North Americans will see the new Tiguan afterwards, when VW announces a release date for us.

Click through for the full press release after the jump!

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Famed design house Bertone, of Lamborghini and Alfa Romeo fame, has given Jaguar a hint of Italian flair with the B 99 concept. Slated to be unveiled at Geneva, advance pictures have leaked and given us an idea of what it’ll look like.

The B 99 is what Bertone believes a modern Jaguar should look like, complementing the dramatic lines of the XF and new XJ, with a long, flowing hood and arrow-straight lines. The leaping cat is back in its rightful place on the hood as well, and the ovoid grille suggests the XK and its sporting ancestors.

Rumors from Coventry suggest that Jaguar is preparing a rival to the BMW 3-Series, and while there’s not much known about the extent of the collaboration between Bertone and Jaguar, this could foreshadow that upcoming car.

Click the jump for another picture of what will undoubtedly be one of the showstoppers of the Geneva show.

[Source: Autoblog]

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Factory Five is a company mainly known for their inexpensive, popular Cobra kit cars, but the company has dabbled in original designs more than a few times. Their GTM supercar is a looker with Corvette power, and a rare beast at that. Now the company is expanding their own designs with a mid-engined convertible under 2,000 lbs, and packing the running gear from a Subaru Impreza WRX.

The car packs an impressive amount of specs. The target weight is 1,800 lbs, on a space-frame chassis with a Lotus-sized 95″ wheelbase. The two-seat roadster will have a removable hard top, and instead of heavy paint it will use gel coat panels. But what’s more impressive is the target price: the kit will be $9,900, and a completed car will be $15,000. Supply your own WRX engine (comparatively a dime a dozen, though other engine options will be available) and running gear and you’ll have a fun, lightweight performer for half the cost of a used Elise.

[Source: Factory Five]

Testing exotic cars in the frozen north seems to be a trend right now. Lamborghini just released a teaser video of its new Aventador LP700-4 amid the snowbanks and now Ferrari has done the same, drawing attention to its own all-new AWD system.

The successor to the 612 Scaglietti, the FF maintains seating for four and even offers genuine cargo room thanks to the almost wagon-like design.

Powered by a direct-injection 6.3-liter V12 engine with 651-hp and 504 ft lbs of torque, the FF can hit 62 mph in just 3.7 seconds.

But that’s not all, with the FF promising improved fuel economy and reduced emissions thanks to the company’s HELE (High Emotion Low Emission) system that cut emissions by 23 percent in the California HELE Concept.

Ferrari will release additional information at the car’s world premiere at the upcoming Geneva Auto Show in March. Until then, check out the full gallery below and see AutoGuide’s 2011 Geneva Auto Show preview here.

See the video after the jump:

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