Automakers and auto dealerships are opposing a bill that would require rental car companies to prohibit renting of recalled vehicles until they are repaired.

The argument being made by both the Alliance of Automobile Manufacturers and the National Automobile Dealers Association is that rental car companies will demand “front of the line” service, pushing normal consumers to the back of the line for recall repairs. Alliance president and CEO Mitch Bainwol believes “a broad federal mandate grounding all vehicles regardless of the nature of the recall triggers potential negative impacts that consumer notification would not.” Bainwol also believes that the bill opens the door to lawsuits from rental car companies for “loss of use” damages during recalls.

SEE ALSO: Reintroduced Bill Aims to End Renting of Recalled Cars

As a compromise, dealers and automakers believe rental car companies should inform the consumer that they are renting a vehicle that has been recalled but not repaired. Of course not all safety recalls cause a vehicle to dangerously operate, which is another side automakers and dealers are arguing. They do however, support the intent of the bill, but more noticeably for vehicles that are not mechanically sound or are unsafe to operate.

[Source: Detroit News]

To celebrate its third Formula 1 Constructors’ world title, Renault and Red Bull Racing have teamed up to create the limited edition Megane Renaultsport Red Bull Racing RB8.

The new flagship Megane Renaultsport is inspired by Red Bull Racing’s Formula 1 identity, but in a much more subdued fashion. It’ll be offered in a Twilight Blue exterior finish accented by Platinum Grey details.

Power comes from a 2.0-liter, turbocharged engine with 265 hp. The car is further made special thanks to Red Bull Racing branding, Recaro seats, R-Link multimedia and TomTom Live navigation system, Bridgestone Potenza RE05A tires and the latest Version 2.0 of the on-board R.S. Monitor.  The only available transmission is a six-speed manual.

Essentially, the limited edition model is a mechanically standard Renaultsport Megane 265 Cup except for the tires.

In total, 30 will be made for the UK market and will be available until September 30, 2013. Pricing will be announced closer to its launch.

GALLERY: Renault Megane Renaultsport Red Bull Racing RB8

Discuss this story at RenaultZEForum.com

The Insurance Institute for Highway Safety (IIHS) does important work crash testing all-new vehicles, and the Institute has just released the second video in a series detailing exactly how they conduct crash tests.

This video focuses on front crash tests. Specifically, it looks at what goes into setting these tests up, and how the results are measured and turned into quantitative data. It also explains the differences between the two different frontal crash tests that they conduct.

Recently, the IIHS introduced a new small overlap front crash test, which is also detailed in this short video. The most recent segment to run through the small overlap test was compact crossovers, and they did not fare well.

SEE ALSO: Small SUVs Fare Poorly in IIHS Small Overlap Crash Test

To earn the accolade of IIHS Top Safety Pick, a vehicle must score top marks in moderate overlap frontal test, side impact, rollover and rear tests, regardless of their rating in the small overlap frontal test.

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Gamers worldwide anxiously awaited the announcement of Microsoft’s next-generation Xbox console today – the Xbox One – and along with the announcement came footage from the newest Forza Motorsport racing game. 

Showing off what the next-generation console will be capable of, Turn10 Studios revealed Forza Motorsport 5 with the video pitting the McLaren F1 against the new kid on the block, the P1.

Not many details were revealed about the game, but the trailer does show off the amount of detail the new console brings to the table. Forza Motorsport 5 will be available right away when the Xbox One launches later this year, and more details on the game will be revealed at the upcoming E3 show.

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Based on the Jeep Grand Cherokee and slated to be the brand’s volume seller, Maserati’s Levante SUV has remained more-or-less in the dark despite its crucial role for the brand.

That will change soon as the SUV previewed in the Kubang concept (above) approaches production, which will take place in Italy. Originally, the brand had planned to build its luxury SUV alongside the Grand Cherokee, but strong demand for the American soft-roader kept it from happening.

Expected to launch in the first half of 2015, Maserati will offer both the 3.0-liter twin-turbo V6 with 410 hp and a 3.8-liter twin-turbo V8 with 530 hp while the European market will also be offered a diesel option.

Expect an eight-speed automatic transmission and a version of the all-wheel drive system currently found in the Quattroporte. Maserati will draw on the Jeep brand’s off-road expertise as well, but the vehicle will be pavement biased with an interior close in quality to the Quattroporte.

Last year, Maserati sold roughly 7,000 units, but the brand is aiming to increase its volume to as much as 50,000.

[Source: Edmunds]

Discuss this story at Luxury4Play.com

Toyota has already teased the upcoming Corolla with the Furia Concept, but now the brand has released the first official photo.

The styling of the new Corolla is expected to take a major departure from the current car, borrowing cues that were introduced by the Furia Concept. From a technical perspective, the new Corolla is expected to stay close to the same.

According to a leaked order guide, the 2014 Corolla will get its power from a 1.8-liter four-cylinder engine that includes the automaker’s Valvematic continuously variable valve timing and lift system. The current Corolla also uses a 1.8-liter four cylinder, though that engine only has variable valve timing.

SEE ALSO: 2014 Toyota Corolla to get 40 MPG, Sporty Handling

For transmissions, the base four-speed automatic is expected to stay, though a new CVT will be introduced to higher trim levels. A six-speed manual transmission will also be available.

On the sidelines of the Detroit Auto Show, a Toyota said that the new Corolla will top 40 mpg, as well as offer a sporty driving experience.

GALLERY: Toyota Corolla Furia Concept

Sergio Marchionne has issued a written apology to the Italian American ONE VOICE Coalition for a comment he made during last January’s Detroit Auto Show.

During the show, Marchionne said that the Alfa Romeo 4C needed a “wop” engine. The remark spurred a few humorous headlines at the time, but didn’t cause much of a stir. At least it didn’t seem that way, but the Bloomfield, N.J.- based coalition demanded an apology shortly afterward.

The group is dedicated to fighting bias, discrimination and stereotyping of Italian Americans.

It also isn’t the first time Marchionne’s penchant for colorful comments caused him trouble. In February, 2011, Marchionne commented on the “shyster rates” Chrysler was paying the U.S. and Canadian governments.

[Source: Automotive News]

Subaru has announced pricing for the 2014 Legacy and Outback, both of which retain their starting MSRP from 2013. 

The 2014 Subaru Legacy starts at $20,295, plus a $795 destination fee, while the 2014 Outback carries a $23,495 MSRP, plus a $825 destination charge. When taken to the highest trim level, the Legacy carries a MSRP of $29,690 while the Outback tops out around $32,920.

No major changes came to the guts of either car, which still get base power from a 173-horsepower 2.5-liter four-cylinder engine, mated to a six-speed manual transmission. If more power is a priority, buyers can get a 256-horsepower, 3.6-liter six-cylinder engine that is hooked up to a five-speed automatic. Subaru’s all-wheel drive setup is standard on both cars, and a CVT is an option on base models for both.

The biggest changes for 2014 come to the packaging of both cars. The 2.5i Premium models now come standard with the All-Weather Package, which includes heated front seats, heated side mirrors and windshield wiper de-icer. On the inside, Premium models now also come with display audio system featuring a 4.3-inch screen, six speakers and SiriusXM Satellite Radio with a four-month free trial subscription. Over the 2013 models, the 2014 Premium trim Outback and Legacy cost $300 more.

Also new for the Premium trim is the addition of Subaru’s EyeSight driver-assist system which incorporates Adaptive Cruise Control, Pre-Collision Braking and Vehicle Lane Departure Warning.

 GALLERY: 2014 Subaru Outback & Legacy

 Discuss this story at subaruoutback.org

Elon Musk, Tesla’s ever enigmatic CEO, announced over Twitter that the company will likely repay its government debt by Wednesday, May 22. 

“Given govt loan repayment this week (prob Wed), Supercharger update will be next week. Work continuing independent of announcement,” Musk said through his Twitter account yesterday.

SEE ALSO: Tesla Offers $450M in Stocks, Musk Buys $100M Worth

A Tesla spokeswoman confirmed to Reuters that he was referring to repaying the Department of Energy loan.

Last week the company announced that it would use $452.4 million from a bond and stock offering to repay the loan in full with interest.

Discuss this story at Tesla-Forums.com

Although the company filed for Chapter 11 bankruptcy months ago, Coda Automotive wants to recall its single product to replace the side curtain airbags.

Coda has filed a request with the United States Bankruptcy Court for the District of Delaware to conduct a voluntary recall of Coda Sedans that will not exceed a total cost of $40,000. Because the company is bankrupt, it can’t fund the recall itself, but the companies debtors in possession have agreed to use their cash collateral to conduct the recall.

But why is it so cheap? According to the request filed by Coda, the company only ever sold “fewer than 100 Coda Sedans.”

SEE ALSO: 2012 Coda EV Review

In National Highway Traffic Safety Administration testing, the Coda Sedan’s side-curtain airbags did not deploy as intended, resulting in sub-par safety performance. Coda wants to perform the recall to “protect the Coda name for the benefit of the Debtors’ estates,” along with providing safety to Coda Sedan owners. In addition, the recall keeps Coda in good favor with NHTSA, and also allows another company to buy out Coda and continue operations.

[Source: Chapter 11 Cases]

Demand for an electric cargo van that can only travel up to 50 mph isn’t strong enough to justify full production.

That’s what Mercedes is admitting after releasing a limited number of Vito E-Cell electric commercial vans in Europe to test the market viability of such a vehicle. Mercedes van division head Volker Mornhinweg said the project is being killed.

The Vito E-Cell could carry up to 1,873 lbs and could drive up to 80 miles and Mercedes only managed to sell a few hundred units.

Not surprisingly, diesel engines are still a more attractive option for the brand’s next generation of commercial vans. They will also use engine start-stop technology and lightweight materials to improve efficiency and might be sold in North America.

[Source: Car and Driver]

Ten years ago the so called “tuner scene” was in full affect. Every manufacturer wanted a piece of this compact performance pie and the possibilities seemed endless for consumers. But, like any automotive trend, time moves on, tastes change and only a handful of hopped up economy cars remain.

That didn’t deter Ford. After years of hot editions of the Focus in Europe, the maker finally brought the fire-breathing Focus ST States-side. Not only that, but pricing has been kept in check as well with the ST starting at $24,495.

After week behind the wheel, the ST proved it isn’t just a vast improvement over a regular Focus, but quite possibly ready to redefine the hot hatch segment. Here are five reasons why.