It was only a matter of time until Fiat‘s small car DNA seeped into Chrysler‘s veins and morphed a small car capable of competing with the Ford Focus and Honda Civic, the Chrysler 100.

Truth be told, that already happened with the Dodge Dart, which we reported on during the Detroit International Auto Show last month. That said, it’s still significant that the company is going to launch something new in that segment, considering they haven’t really appealed to the compact market. That is, unless you call a PT Cruiser appealing, which we flatly refuse to do.

The 100 will borrow underpinnings from Fiat, just like the Dart, though this one will be a five-door instead of a sedan that looks a lot more like the Alpha Romeo Giulietta (pictured above).

Speaking of looks, the car spied by Road & Track has some interesting touches we didn’t see when the first concept debuted at the 2010 Detroit Auto Show. For example, we can see that the rear door handles are hidden, not something common to American cars. It also looks as if the head and tail lights will sport LEDs.

We don’t have details, but the fact that there will be a Dodge and Chrysler version of essentially the same car will position the company nicely to offer product differentiation. The Chrysler will likely be more comfort-oriented, leaving the Dart open as a sportier version for younger consumers.

[Source: Road & Track]

The Sports Car Club of America’s B-Spec class is growing in popularity as enthusiasts enjoy a relatively inexpensive entry into amateur racing while automakers are discovering B-Spec to be a great platform for grassroots motorsport marketing.  Honda, one of the early adopters to B-Spec racing, is committed to the series and hopes to gain even more fans.

Honda Performance Development, HPD General Manager Marc Sours said, “A cornerstone of our grassroots motorsports marketing initiative has been to establish a connection between Honda’s passenger cars and the racing cars that evolve from these models. The B-Spec category provides a relatively low-cost means for the prospective racer to enter the sport, and the Honda FIt offers a natural point of entry. These are inexpensive, great-handling cars that should provide both excellent competition and help grow the sport at the entry level.”

Continuing its support, Honda has announced a new line of “manufacturer-approved suspension components” for the Honda Fit that will be available via HPD on February 1, 2012. The suspension components kit includes coil-over shocks, front and rear race springs, cat-back exhaust, performance front brake pads, camber bolts, braided stainless brake lines, an air filter,  and an A/C delete belt.

Despite the thorough list of performance parts in the kit, Honda fit owners and racers will still need to be responsible for a competition roll cage, racing seats, harness and other safety equipment.

[Source: Inside Line]

It’s no surprise that the 500′s return to North America did not make the splash that Fiat expected. Having sold less than 20,000 vehicles in its first model year in the United States, the 500 only did half as well as the company initially forecasted.

The success of the 500 is essential to the Italian automaker’s re-entry into the North American market. In Europe, Fiat sold more than 770,000 units since the 500′s introduction in 2007. Fiat/Chrysler CEO Sergio Marchionne admitted that the 500′s weak performance was in part due to overly-optimistic forecasting. “We thought we were going to show up and just because of the fact people like gelato and pasta, people will buy it.”

However, Fiat believes that creating variants for the 500 could help boost its popularity.

Set for unveiling at the 2012 Geneva Auto Show, Fiat hopes that a 5-door Fiat 500 wagon will find better success in the North American market. The official release date of the Fiat 500 wagon is slated for 2013, while a sportier Fiat Abarth hot hatch will be available for sale later this year.

Whether the 500 wagon will boost Fiat sales remains to be seen. While the wagon’s dimensions will be slightly larger and more suitable for American consumers, station wagons are historically unpopular in North America.

[Source: Car Connection]

Volvo is angling in on BMW and Audi territory with a new 5-door hatchback meant to target the same market as the 1-series and A3 Sportback.

Stephan Jacoby, Volvo’s CEO, showed the first teaser photos of the car originally rumored to be called the V30. That speculation was corrected today, in fact the car will run as the V40, the same as their mid-90′s station wagon.

Details about a U.S. release  and pricing haven’t been discussed yet, but when the car comes to market it will feature a stretched version of the C30 platform, measuring about 175 inches. Initially, the V40 will only come as a hatchback though Jacoby said a 4-door version is still possible.

“It’s basically a new segment for us”, said Volvo spokesman Per-Åke Fröberg in an interview with Sweden’s Dagens Industri.

According to De Telegraaf, a Dutch newspaper, the car will come with different engine options. First, a 1.6-liter four cylinder with the option for 120, 150 or 180 horsepower. Second, a diesel version featuring either a 1.6-liter or 2.0-liter under the hood.

So far it isn’t clear how much the car will cost, but one thing is certain: the V40′s entry marks two other models being discontinued in 2012: the S40 and the V50.

With an illustrious past in motorsports, Ford expands its racing activity by introducing the Ford Focus ST-R, a turn-key race version of its popular hot hatch.

Right out the box, the ST-R will be eligible to race in a selection of professional series including the Grand Am ST Class, World Challenge ST Class, Canadian Touring Car, as well as European endurance racing events, such as the Nurburgring 24. What’s more, while most competition vehicles are exclusive to well funded race teams, the Focus ST-R intends to be sold to amateurs and privateers that wish to get their start in racing.

While the Focus ST-R is a serious racer, it shares a lot of hardware with the regular ST. The body is fundamentally identical; the same dashboard, center-console, and door handles are used although the interior will be stripped of everything else; and a tuned version of the regular ST’s 2.0-liter EcoBoost will be used. The substantial changes include an FIA-regulation roll cage, racing brakes, racing suspension, and hip hugging racing seats.

Racing conversions don’t come cheap. Hand over $98,995 and the local Ford dealer can order your very own Focus ST-R through the Ford Racing catalog.

GALLERY: Ford Focus ST-R

[Source: Motor Authority]

The slow-selling Fiat 500 hit another snag after NHTSA gave the compact car a three-star crash test rating, a dismal score in an era where five-star ratings are practically ubiquitous.

While the 500 got four stars in the frontal crash and rollover tests, the side impact result was a poor two stars. Only the now-dead Dodge Caliber and the Ford Escape (set to be replaced after a decade in production) have achieved similar ratings. The 500′s fellow subcompact competitors like the Toyota Yaris, Honda Fit and Chevrolet Sonic have yet to be crash tested.

The Fiat has been plagued by slow sales, with Chrysler reporting a 173-day supply for the vehicles, and three consecutive months of declining sales figures.

[Source: Automotive 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 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

The head of Toyota‘s Prius program thinks that Toyota will be able to sell as many as 1 million hybrids anually by 2015. Satoshi Ogiso, who was responsible for developing the original Prius, said that hybrids could sell as many as 2 million units by 2020.

Toyota Hybrid sales topped out at 690,000 in 2010, and many felt that if it weren’t for March’s earthquake and tsunami, the pace of sales would have accelerated even further. Prius sales (including the Prius c, Prius V and other variants) will account for half of hybrid sales.

Ogiso said that model line-up expansion would be kept under control for the Prius, but some expansion may occur. A sports car model was also hinted at, but appears to be some ways off.

[Source: Automotive News]

The world’s least expensive car, the Tata Nano’s original purpose in design was to be a modern Ford Model-T, mobilizing millions of families in India.

Despite the Nano’s noble intentions, only 1,200 examples were sold in the month of September when initial projections expected a rather optimistic 20,000 vehicles per month. A new approach may be the remedy and that’s exactly what Tata hopes to achieve with its new Nano commercial.

Targeting India’s young, active, and likable college students, the ad features American idioms sprinkled throughout that frankly sound a little contrived.

The Nano boasts a passenger space increase of 21 percent. Tata also shows off the Nano’s acceleration (good for passing trucks on Indian highways) as well as ride quality and ground clearance capable of fording a spring creek. The Nano’s A/C is so strong that one buddy decides to hibernate, allowing everyone else to enjoy a popular college pastime that involves black markers and camera phones. Finally, the twisty and mountainous roads to the weekend getaway help to demonstrate Nano’s best-in-India 25 km/liter petrol mileage as well as its short turning radius.

See the commercial for yourself after the jump

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