Volvo is out to prove that even at the performance level it can compete with Germany’s luxury brands and is going about doing so with the Polestar S60.

The spy photo above was snapped by someone who reads Swedish magazine, Teknikens Varld. Information from the registration office suggests that the car is a T6 all-wheel drive with 304 hp, but rumblings of a V8 have us thinking otherwise.

If it is, in fact, the bigger engine, we could expect more than 400 hp out of the car, making it a viable competitor to the BMW M3 or Mercedes-Benz C63 AMG.

Polestar is Volvo’s racing partner, and the firm responsible for tuning a few production cars for the company including the C30 Polestar (PCP). Given Polestar’s racing prowess, it seems likely that a sequential gearbox will slip into the car, though a six-speed manual might make it too.

In the picture we see a car that sits much wider than a normal S60 with bigger fenders and wider wheels. Characteristics like that suggest that it’s a performance oriented model.

Information on the car is purely speculative for now, but the fact that a test mule is running the streets suggests more information will probably be available soon.

Paperwork filed with the National Highway Traffic Safety Administration is suggesting that Mercedes-Benz will offer a new option in the E- and C-Class as a late-cycle update.

The document shows entries for a 3.5-liter V6 E300, E300 4Matic and C300. That raises the question of which engine might be put in with those cars. At the moment, Mercedes already sells its E300 4Matic in Canada with a detuned version of the 3.5-liter V6 found in the E350. The Canadian E300′s engine only makes 248 hp and 251 lb-ft of torque compared to the more powerful version’s 302 hp and 273 lb-ft.

While paperwork filed with NHTSA doesn’t guarantee a new model, releasing something like this in the U.S. would make sense for Mercedes. Currently, it doesn’t offer a car to compete with BMW’s base level 528i or Audi’s 2.0T-powered A6. Offering a less-expensive version of the mid-range luxury sedan could make it more competitive in the American market with the current top two luxury brands.

What’s more, adding the same engine to its C300 could offer an update to the aging and unimpressive car, which is now too close to the entry-level C250. Given that Mercedes already sells an E300 in North America, it would be an easy transition to take it from the Canadian market to the U.S. Similarly, it seems like an easy step to improve the C300 with an updated engine to make it a relevant purchase.

[Source: Car and Driver]

Providing the best look yet at the baby CLS, our photographers have snapped these spy photos of the upcoming Mercedes CLA.

First referred to as the CLC, the coupe-styled sedan is actually based on the new A-Class architecture that will find its way to North America. With a Mercedes hatchback an odd proposition for our shores, expect the CLA to make up the bulk of sales, especially with the dramatic styling that’s becoming more clear in the photos.

Expected to be available in both front and all-wheel drive versions, the CLA is likely to come standard with the new 201 hp turbocharged 1.8-liter found in the current C-Class. Transmission choices could include a 6-speed manual (a rarity for Mercedes) as well as the brand’s new 7-speed dual clutch automatic.

There’s also the strong likelihood of a CLA 25 AMG model making over 300 hp.

GALLERY: Mercedes CLA Spy Photos

GALLERY: Mercedes A25 AMG

This year, at the Cannes International Film Festival in France, the 65th Palme d’Or (Golden Palm) will be awarded. Mercedes-Benz decided to pay tribute to the celebration of the coveted award by providing a fleet of shuttle limos and SUVs completely wrapped in bright, flashy gold.

As you can tell by the photo, the German automaker is providing stretched S-Class models, CLS-Class models, E-Class models, and ML-Class models. Some of those are AMG variants ensuring stars and guests of this year’s film festival can travel in style. AMG is also offering daily test drives throughout the festival dates (May 16 – May 27) so that visitors can test out the luxury brand’s current line up.

It’s pretty flashy to wrap a fleet of transportation cars in shiny gold finish, but when it comes to the Cannes International Film Festival – nothing is considered too outrageous. As it says on the side of one of its cars, “Star inside. Star outside.”

[Source: Carscoop]

The Mercedes-Benz E-Class is getting a mid-cycle refresh that will rid the car of its iconic quad-headlight setup, and add new style to the front, rear and side body panels. 

Captured in our spy photos, the E-Class we see is a prototype wagon, but still shows off the new front end lines of the car. Covered in heavy plastic cladding, the front end update is concealed very well. Still, we see that the quad headlights have been integrated into one another, and are now a more standard two light setup. The LED daytime running lights have also been moved, out of the bumper and into the bottom portion of the headlight.

The new E-Class will also lose its full car length belt-line, otherwise known as Pontoon styling. The line that runs the length of the car will stop around three-quarters of the way to the back, where a new line will start underneath. The overall look of the new E-Class is aiming to be more luxurious, to separate it further from the sportier C-Class.

Technology will not be in short supply, as the new E-Class is destined to get improved night assistant, dynamic light assistant, intelligent lane assistant, intelligent brake assistant, congestion assistant, magic ride control and heads-up display.

Watch for the 2014 E-Class to bow at the 2013 Detroit Auto Show.

GALLERY: 2014 Mercedes-Benz E-Class

Getting the most out of a high performance car like an AMG takes skill, training, and practice.That’s why Mercedes hosts the AMG driving academy to teach owners how to squeeze every bit of performance out of their vehicles. 

Released this week, the video below shows highlights from the latest sessions held in Sweden. While sliding around on ice isn’t hard, being in control of the slide can be especially tricky, more so when there’s 500 hp behind the gas pedal.

Filled with slow-motion drifts and smiling faces, the AMG winter driving academy offers enthusiasts a chance to let loose and feel the potential behind an AMG badge.

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AMG is launching a campaign called ‘Which AMG is it?’, to test fans and enthusiasts knowledge of the Mercedes-Benz tuning company.

The first edition features AMG asking if viewers can recognize which of its vehicles is on the other end of a blank screen, strictly be hearing the exhaust note. They gave one subtle hint to complement the video of the engine sound, saying that it’s a naturally aspirated powerplant. There’s no doubt in our minds it’s probably one of AMG’s naturally aspirated V8 engines, but the exhaust does sound awfully throaty for a street car. What do you think it is?

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Luxury cars are expensive to maintain, but a little-advertised program called “Ultimate Service” takes care of that for folks who buy a new BMW.

The program isn’t anything new, but there hasn’t been a whole lot of publicity surrounding what would probably be a big plus to many buyers — the idea of having all maintenance covered for four years after purchase. That’s about to change, though, as the brand gears up to launch a new line of commercials that advertise the service.

Other recent ads for the brand have focused more on the “Ultimate Driving Experience” that BMW is so proud to brand, but that’s left room for other automakers to swoop in with snarky spots.

The two videos you’ll find below feature a man and woman, both receiving their BMW after it’s been serviced. The technician says there’s no cost for the repairs, which the woman takes as an advance and the man tries to bribe with sports tickets.

So why the shift from silly to serious? It’s no secret that Audi and Mercedes-Benz have been gunning for BMW’s spot as the top luxury brand. Aside from the ads, it seems the company is trying to generate as much buzz as possible for itself.

Aside from the new ad direction, BMW is also sponsoring the 2012 Summer Olympics, which will showcase a host of green technologies. If all goes as planned, this year could position the brand to keep the coveted top spot.

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It’s been a while since we heard anything about the Porsche Pajun, a smaller version of the Panamera that would compete with the Mercedes E-Class or BMW 5 Series, but information is starting to crop up again. 

Previous reports suggested that the car would come around in 2016, but that date seems to have been pushed back to 2017 for now. The latest information also suggests that a range of V6 gasoline engines reaching from 320, 420 and 520 hp will be available alongside a diesel with 313 hp. It will also be built on Audi’s MLB platform.

There wasn’t any mention of a hybrid drivetrain, as was reported last year, but given the demand for efficient vehicles (even in the luxury segmgent) it seems reasonable that something along those lines could be coming too. Then again, the diesel engine in conjunction with Porsche’s dual-clutch transmission could probably offer the fuel efficiency those clients would want.

Still, it’s hard to think that the company is really going to deliver in five years. Last year it was 2016, now it’s been pushed again and the word from Stuttgart seems to be grim for new vehicles. The company hasn’t been shy about emphasizing its preference to focus on cash cows, but then again that’s exactly what this could be with the right price tag.

[Source: Autobild]

We knew that Nissan was working on an Infiniti compact, but we just didn’t know when it would reach production. It’s all cleared up today as the Japanese automaker has confirmed that its Infiniti Compact will enter production in 2014.

“This new vehicle represents a significant opportunity for the Infiniti brand to reach new consumers and grow in key markets such as Western Europe,” said Andy Palmer, Nissan executive vice president.

The news comes straight from the company today, as it inked a tentative deal with Magna Steyr, a division of Canadian automotive parts supplier Magna. This would be Magna Steyr’s first vehicle assembly agreement.

The new vehicle is slated to be based on the Infiniti Ethera Concept, and will be built in Austria by Magna Steyr. This new entry-level vehicle by Infiniti will be priced and sized under the current Infiniti G sports sedan.

This vehicle also represents another element of Nissans partnership with Mercedes, as this new compact will be based on the German automaker’s MFA platform, which is used in Mercedes-Benz’s A- and B-class vehicles.

There are a lot of car stereotypes out there, like that Toyota builds dull appliances. While true on many fronts, the Japanese automaker does also make exciting sporty cars like the Scion FR-S, and Lexus LFA, both praised for their exhilarating rides, edgy styling and pulse-raising performance. But there’s another stereotype that needs to be dealt with.

Likely you’ve heard the phrase “German engineering” more than a few times in your life and there’s a popular misconception that it equals good reliability. German cars are well engineered, sometimes to be amazing performance machines and sometimes to be incredibly high-tech (and often both) but, Porsche aside, German cars don’t have the best track record for reliability.

A REPUTATION EARNED

Part of the reason for the misconception about German engineering is that German automakers did, at one time, earn it. When Consumer Reports started its Long-Term Reliability Tests and Initial Quality Index tests way back in 1972, German brands like Volkswagen and Mercedes-Benz came out on top. The initial quality of even the lowly VW Beetle topped many domestic vehicles from Ford, Jeep, Pontiac and Mercury.

For a while afterwards, Mercedes and VW managed to stay near the top in reliability rankings. But their Japanese rivals weren’t sitting idly-by. In the 1980s and 90s the most reliable models ended up coming from Honda, Toyota, Acura, Infiniti and Lexus.

“Back then, the cars like the Beetle were pretty simple. But then came stronger competition, the Japanese [automakers], especially Toyota and Honda got their problems per 100, down to a science,” Said Gabriel Shenhar, an automotive engineer at Consumer Reports.

A REPUTATION LOST

In the late ‘90s Mercedes had released the dismally unreliable M-Class SUV (left) and the brand’s initial quality scores have plummeted since. Other German brands had similar experiences. Even though they stayed at the forefront of new technology and engineering practices, their new gizmos were prone to failing.

“They’re quick to adapt new technologies but rely on suppliers that supply these technologies and in a lot of cases what we see is problems with the electrical systems, the entertainment systems and other interface,” said Schenhar

According to Consumer Reports, Mercedes boosted its reliability a bit in 2011, but is still inconsistent. The same can be said for Mercedes’ German competitors, Audi and BMW. In Consumer Reports last five annual reports, the last time these German brands have been above average in reliability was back in 2007. Since then, they’ve all slumped below the average in the industry.

Consumer Reports’ Long-Term Reliability test documents a car’s reliability over the course of three years, while the Initial Quality Index is based on consumer feedback from the first few months of a new cars ownership.

Consumer Reports also has a report card that ranks automakers based on their average car score, reliability score and the percentage of recommended vehicles. The average score for these carmaker report cards over the past five years (when they started the report cards) of the German brands doesn’t crack 68/100, below the industry average and the competition from the top Japanese automakers.

These results are reflected in numbers released by J.D. Power & Associates as well. In the both of the latest J.D. Power Surveys, the German brands can’t match up to their luxury peers. In the most recent vehicle dependability survey, Mercedes-Benz only gets a four out of five, which is “Better than most” rating, while Audi and BMW get 3/5 or “About Average.” Volkswagen falls below average with 2/5, what J.D. Power describes as “The Rest.” Porsche is also ranked “Better than most” in J.D. Power’s dependability survey, which give Mercedes-Benz some nice company. It’s important to note that only one car maker had a score of 5/5, and that’s Lexus.

Nothing changes in J.D. Power’s Initial Quality rankings. Mercedes and Porsche have 4/5 ratings, BMW and Audi get just 3/5 and VW only achieves 2/5. Lexus tops that ranking as well with a 5/5.

The J.D. Power ratings are based on consumer surveys. Initial Quality is measured after 90 days of a new car’s purchase. Vehicle Dependability Ratings are surveys based on the past 12 months of original owners of three-year old cars.

POOR RANKING NOT JUST ABOUT QUALITY

Some of the reasons why German cars struggle in J.D. Power’s rankings in the past are entirely trivial and are not related to actual vehicle quality at all says Karl Brauer from Total Car Score.

“German cars didn’t offer cup holders for years, and while this isn’t a mechanical failure it was often noted as a dissatisfaction point for buyers on J.D. Power and Consumer Reports surveys, and this drove down their scores” said Brauer. “Most German cars (even Porsches) now have cup-holders because the manufacturers realized they were suffering in terms of owner satisfaction scores by not having them,” he added. The same thing could be said about some of the complicated technologies and infotainment systems like BMW’s first generation iDrive system (pictured right).

SACRIFICE FOR PERFORMANCE

Along with these more trivial complaints and technology issues, Shenhar of Consumer Reports tells us that German automakers, by their own admission, sometimes come up short because of their singular focus on performance. When and if they cut costs, the likely areas that will get cheaper quality parts will be with some of the stuff the customer might not notice.

“They are susceptible to cost-cutting and anywhere they can, in the hopes that the customer won’t know, they use suppliers that will deliver and sometimes won’t,” says Shenhar.

While the phrase “German Engineering” has become synonymous with reliability, Shenhar suggests it should more accurately be a reference to performance. And in regards to performance, there’s little doubt they have some high standards. In fact, looking away from initial quality and reliability, German vehicles rank quite well.

GERMAN CARS STILL APEAL-ING

In J.D. Power’s Automotive Performance, Execution & Layout (APEAL) study, which looks at how gratifying a new vehicle is to own and drive, based on owner evaluations, Porsche comes out on top, as the only automaker to get 5/5. Audi, BMW Mercedes and VW all achieve a 4/5 in this survey as well, showing that these cars are no slouch when it comes to performance and execution.

With its new 3-series, BMW has set the bar even higher for sport sedans, and the new Porsche 911 has again solidified the automakers place in automotive history for making the best sports car in the business. It’s no surprise then that both cars were in the running as finalists for the 2012 World Car of the Year Award.

Neither won, however, but that accolade did still go to a German car: the VW up! In fact, it’s VW’s fourth win in the past five years. Winners are selected based on overall merit, value, safety, environmental responsibility, emotional appeal, and significance.

It’s clear then that there are plenty of reasons to buy a car from automakers like BMW, Mercedes, Audi and Volkswagen, but if reliability is your top concern, don’t be fooled by the myth of “German engineering”.

What is it about European wagons that gets us glowing? Even if you’re not normally a fan, you have to stop and stare at what Mercedes-Benz is flaunting with its CLS Shooting Brake that our spy photographer captured.

This wagon is much less camo’d up than we’ve ever seen before, and that gives us a chance to appreciate the detail that Mercedes-Benz has gone into making this car really flow into its wagon look.

The car we see before us isn’t sporting the same quad-exhaust pipes that we saw last time, so that must mean we’re looking at a non-AMG version of the CLS.

This car is supposed to be available sometime near the end of this year, and you can expect it to come with the same engine and drive-train options as the regular CLS.

The original Mercedes-Benz Shooting Brake Concept debuted back in 2010 at the Bejing Auto Show. The model we see in our photos look very similar to the original concept, so its clear Mercedes’ designers have been hard at work.

Gallery: Mercedes-Benz CLS Shooting Brake spy photos