BMW’s newest M3 sedan was caught testing, and the wide fenders were a dead giveaway for our photographers. Check out the pictures below.

We wish we had more info about powertrains and the like but your guess is as good as ours. In all likelihood, the big, high-revving V8 will take a bow in favor of a turbocharged inline six. We’ve heard crazy rumors of a tri-turbo I6 in the past, but we’ll probably see something like the 1M’s I6 make an appearance – that is, a massaged version of the N54 twin-turbo I6 used in the 335i, albeit with a lot of power. Lighter weight will also play a part, helping to reduce the need for big power numbers.

Gallery: BMW M3 Sedan

With Europe having a long history of taxing cars based on engine displacement, automakers have long dodged this levy by placing diminutive engines in even their largest vehicles.

Infiniti is hoping to get around this by following the same path, and starting in 2012, the Infiniti M will feature a pair of 4-cylinder engines borrowed from Mercedes-Benz; a 204 horsepower turbocharged 1.8 L, and a a 170 horsepower 2.1L turbodiesel. Both engines are from the Mercedes-Benz C-Class, and will be some of the first technology sharing to come from the agreement signed by Mercedes-Benz and Nissan.

The vehicles are expected to be introduced at March’s Geneva Auto Show.

[Source: Left Lane News]

The Audi A3 was caught by our spy photographers undergoing winter testing in Sweden. Despite heavy camoflague, we already know what the next A3 will look like – look at any current Audi for clues to what the front and rear treatments will resemble.

The new A3 will come in three and five door variants (dubbed the Sportback) a convertible and interestingly, a sedan. Audi previewed the sedan at the 2011 Geneva Auto Show, and while the production version may not be as radical as the awesome looking concept (which packed a 408-horsepower 5-cylinder engine and a 7-speed dual clutch gearbox), the car will definitely be attractive, and pack a full suite of turbocharged gasoline and diesel engines, dual clutch gearboxes and all-wheel drive.

North America will definitely get the sedan, and likely the five-door hatch, but we may not get the 3-door or ragtop versions, as those have previously been the exclusive domain of world markets.

Gallery: Audi A3 Spy Shots

Mercedes-Benz GL has gone since 2006 without an update, and for the 2013 model year, Mercedes will finally be paying attention to their big three-row SUV.

While the diesel GL models will be largely carried over, M-B’s new line of turbocharged V8s and direct-injection V6s will make an appearance in the new model. Other changes will be largely cosmetic, with a new front and rear fascia being the most obvious details, as well as revised front and rear lights with a smattering of LEDs too.

Gallery: 2013 Mercedes-Benz GL

Mercedes-Benz is prepping an AMG version of their B-Class hot hatch, and while a front-drive tall wagon may not sound like ideal AMG material, we’re pretty jazzed about the rumored specs.

A turbocharged 4-cylinder engine making 325-350 horsepower will be on board, as well a dual-clutch gearbox (with six or seven speeds). All-wheel drive will be needed to tame the prodigious power, as will bigger brakes, wider rubber and upgraded suspension tuning. Mercedes dealers have been asking for the B-Class as an entry-level product, but Mercedes hasn’t made a decision. On the other hand, the B-Class is already sold in Canada – which happens to be one of AMG’s biggest markets per capita in the world. So the hot B-Class could wind up making its way to the Great White North without ever heading to the USA.

Gallery: Mercedes-Benz B-Class AMG

Volkswagen is out testing the 7th generation Golf, as seen here in spy shots, and the new car looks like it will retain much of the current car’s styling, but get a lower, wider and more aggressive profile.

For North America, expect the 2.0TDI diesel to carry over, but the base 2.5L 5-cylinder is out, to be replaced with a 1.8L turbocharged 4-cylinder (based off of the much-loved 2.0T motor). Golf production may move to the United States, but Volkswagen has been very tight lipped about details, as it remains Volkswagen’s bread-and-butter car in virtually every market except the United States,

Gallery: Volkswagen Golf MKVII

BMW and Toyota are in talks for a technology sharing agreement, one that would reportedly see BMW provide Toyota with a diesel engine for its midsize cars in Europe.

Specific timetables and other details were not announced, but Toyota is believed to be pursuing the deal to help offset the increased cost of importing Japanese-built hybrids due to a rising yen. Toyota would likely end up sharing its vaunted hybrid technology with BMW in return.

Toyota and Ford recently signed a similar agreement regarding hybrid SUVs, while BMW and PSA (parent company of Peugeot and Citroen) signed one for hybrid subcompacts.

[Source: Reuters]

Mercedes-Benz‘s Maybach luxury brand will be axed, much to the consternation of rappers (pictured above), athletes and insipid nouveau riche types everywhere.

While Mercedes had high hopes for the brand, Maybach’s sales have slumped to around 200 units annually, whereas targets called for sales of 1,000 cars per year. Daimler CEO Dieter Zetsche told German Newspaper Frankfurter Allgemeine Zeitung “It would not be sensible to develop a successor model for the current Maybach.”

Ultra-luxury versions of the next Mercedes-Benz S-Class will replace the Maybach in 2013.

[Source: Automotive News]