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

The South Korean auto market has long been dominated by domestic automakers like Hyundai and Kia, but Toyota is planning to make a play by sending 6,000 American-built Camrys to South Korea.

Deliveries will begin starting in January, 2012. Toyota has been exporting the Sienna minivan since November, and also sells the Corolla, Prius and RAV4. Toyota is evidently looking to take advantage of a new free-trade agreement signed between the U.S. and South Korea, as well as take advantage of favorable exchange rates between Korea and the U.S.

Our big question is, with Korean cars (especially Camry competitors like the Hyundai Sonata and Kia Optima) so good noawadays, why would any Korean consumers even bother buying them.

[Source: Wall Street Journal]

Dodge revealed teaser shots of their Dart compact car, designed to replace the wretched Caliber crossover, and so far it looks to be the first hit of Alfa Romeo-inspired product for North America.

Using the underpinings of the lovely Alfa Giulietta compact, the Dart will use a 1.4L turbocharged Fiat MultiAir engine – good for 168 horsepower and 180 lb-ft of torque while returning a reported 39 mpg. Other engines include a 2.0L and 2.4L “Tigershark” 4-cylinder, mated to a 6-speed dual-clutch gearbox. A 9-speed automatic is said to be available at a later date.

Other features include a dual exhaust and 4-wheel independent suspension. The Dart will be built at Chrysler’s Illinois plant, and will get a proper reveal at the 2012 North American International Auto Show.

GALLERY: 2013 Dodge Dart

Discuss this story at DartForums.com

General Motor‘s European subsidiary, Opel has contributed greatly to GM’s engineering and technology development. Despite this, Opel has had difficulty making profit. GM Vice Chairman and Opel’s supervisory board chairman, Stephen Girsky explained to Financial Times Deutschland, “Unfortunately, our plan for making Opel profitable this year did not work.”

Analysts suggest  causes for Opel’s unprofitability include its costly vehicle production in Germany. Germany is one of the most expensive labor markets in the world and Opel’s lack of a premium brand makes attaining the desired profit margin more difficult. If Opel’s lack of performance continues, GM may decide to scrap the brand.

GALLERY: Opel Insignia

[Source: Left Lane News]

Although Saab has been struggling for the past year, don’t bet against it. All but doomed when GM sought to stop Saab’s deal with the Chinese Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co., Youngman is now proposing a new deal with Bank of China, the country’s fourth largest bank by market value.

The deal with Bank of China, which replaces Pang Da, will allow the bank to own just under 50 percent of Saab. As GM threatened to halt the assembly of the Saab 9-4X crossover as well as halting the supply of components and technology if Youngman and Pang Da succeeded their acquisition bid, the substitution of Bank of China should help pave the way for Saab’s acquisition approval.

Currently, Saab is under court protection from Swedish creditors as its plant has not produced a car in months due to unpaid salaries and bills.

GALLERY: Saab 9-4X

[Source: Reuters]

Reports are coming in that Japanese auto manufacturers are looking for ways to cut costs on vehicles being exported to the United States in order to squeeze profits due to the record high yen against the dollar. A prime example is the new GS 350 from Lexus, that has been highly anticipated and praised by the American media.

Though many of the cost-cutting measure will be unnoticeable to the average day consumer, knowing that certain things were done to a luxury sedan is disheartening. For example, Lexus used asphalt spray instead of laminate sheeting for noise suppression on the underbody and recycled plastic instead of virgin for the protective cover beneath the engine, in order to cut costs. That’s not all, as some technical decisions seem to have been impacted due to the surging yen, as we’ll be seeing Lexus’s old six-speed transmission rather than a new seven- or eight-speed that competitors are offering in their new luxury sedans.

Slightly reassuring though is that Yoshihiko Kanamori, chief engineer for the GS 350, did state that ”There were no items omitted that I would like to have, but with this exchange rate we will have to raise the price.” A compromise that Lexus found is offering all the bells and whistles in their F Sport variant which will undoubtedly be drastically different in price from the base GS 350.

[Source: Automotive News]

Our spy photographers have done it again, this time finding the 2013 Mercedes-Benz S-Class in the wild.

The S-Class is an important product for Mercedes, but this generation has the added burden of replacing the now-dead Maybach sedans, as well as acting as the flagship for Mercedes-Benz.

Expect to see VIPs, celebrities and African desposts chauffeured around in these starting in 2013. There’s a good bet your local hedge fund manager will have one, too.

Check out the video after the jump

Continue Reading…

An article in Automotive News suggests that the Cadillac ELR, which will share major driveline components with the Chevrolet Volt, will actually be rear-wheel drive.

The report states that the ELR has been dubbed a 2+2, meaning two small seats in the rear, similar to a Porsche 911. The Volt uses a t-shaped battery pack that is adapted for a front-drive layout, but a 2+2 configuration would allow for the battery pack to be mounted in such a way as to clear a driveshaft sending power to the rear wheels.

Rick Kranz, the author of the piece, suggests that rear seat room would be compromised, but the 2+2 layout of the coupe – plus the use of the rear-drive platform shared with the Cadillac ATS – would allow for Cadillac to justify a price premium over the Chevrolet Volt, something that new sheetmetal and an advanced infotainment system would not be able to achieve. If this report turns out to be accurate, then the ELR could be a game changer, as the first front-engine rear-drive electric car on the market.

[Source: Automotive News]

Toyota has announced that starting in 2013, it will sell Lexus vehicles in India. No specific products were announced for sale, but likely contenders include the LS and GS sedans, as well as the RX crossover. Given India’s less than perfect roads, the LX and GX SUVs (based on the popular Toyota Land Cruiser SUVs) may also make it over.

While Lexus has been around for over 20 years, the brand didn’t expand beyond North American and Europe until 2o05. Asia, Russia the Middle East and now India are its latest conquests, and Toyota is hoping to repeat its success in markets like The United States. Unlike some luxury manufacturers, like Mercedes-Benz, Toyota will import Lexus vehicles from Japan and elsewhere. Mercedes chooses to assemble vehicles locally to avoid expensive import duties.

[Source: Left Lane News]

Sergio Marchionne revealed Maserati‘s big plan to introduce three new products in quick succession during a recent interview at the CBI business conference held in London.

The three new vehicles are a replacement luxury sedan for the Quattroporte, a smaller Maserati four-door based on the Chrysler 300, and the Maserati Kubang SUV based on the Jeep Grand Cherokee.

Marchionne explained the ambition behind the launch, saying, “Maserati will increase its volumes by having three cars… We are a bit secretive over what you get first because it has implications for the industrial footprint of the group.”

According to CAR magazine, it is likely that the first car launched will be the new Quattroporte. Marchionne also hinted that the smaller four-door will likely be built alongside the flagship luxury sedan, “You see, there is a site in Modena that makes the Quattroporte, there’s some debate what happens to that plant after Quattroporte. There is sufficient commonality in what we’re doing between the smaller car and the bigger one that we can do what we want.”

While some traditionalists may question the merits of a Maserati SUV, the Kubang is real. The new Kubang will be based on Grand Cherokee underpinnings and will likely be built in Jeep’s U.S. plant.

While a Chrysler-based Maserati sedan and SUV may not sound very appealing, Marchionne assures that the important bits will be thoroughly Italian with Ferrari/Maserati-based engines, suspensions, styling, and cabin furniture.

GALLERY: Maserati Kubang

[Source: CAR magazine]

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]

12. Toyota Camry

While automakers and outside research firms publish sales figures and earnings reports on a regular basis, one metric we rarely get a glimpse of is how profitable each vehicle is. In an era of re-badging and platform sharing, one would think that the most profitable vehicles are those with a large number of derivatives to spread the cost around. But a new report from Bernstein Research suggests that two factors – price point and volume – are the keys to making big bucks off vehicles. And judging by the list, longevity seems to help as well.

Number 12 on the list is the Toyota Camry, and for good reason. The Camry has a number of factors in its favor – massive volumes, an accessible price point and its made in America (currency fluctuations, particularly a rise in the euro or yen, can make exports unprofitable). Bernstein’s report notes that high volume cars at a medium price point are one of the keys to profitability, and the Camry might be the textbook definition of this formula. The Camry’s twin, the Lexus ES350, was absent from the list, but no doubt earns its keep, as a gilded version of the Camry.

Tata Sons has named Cyrus Mistry as its next CEO, as current CEO Ratan Tata prepares to retire. The unmarried, childless Tata named Mistry as CEO of the holding company responsible for Tata’s numerous divisions, among them their automotive sector which owns Jaguar and Land Rover, along with the namesake Tata Motors brand.

“The appointment of Cyrus P. Mistry as deputy chairman of Tata Sons is a good and far-sighted choice. He has been on the board of Tata Sons since August 2006 and I have been impressed with the quality and caliber of his participation, his astute observations and his humility,” said Tata, in a statement.

Mistry’s father is Tata’s largest individual shareholder, with an 18 percent stake in the Indian conglomerate. He is currently head of another Indian corporation, the Shapoorji Pallonji group, and will assume full responsibilities in December, 2012 when Tata steps down.

[Source: Automotive News]

Consumer Reports has made allegations against Volkswagen that the company provided press vehicles that were built to a higher standard than versions sold to consumers.

Stories of “ringer” press vehicles are legend in the automotive world – most recently, Ferrari was accused of providing press cars that performed far better than customer cars. Now, the venerable consumer mag, which has made a name for itself by purchasing its own vehicles for road tests, has published photos and descriptions of a few key differences between the 2012 Passat they purchased, and the versions provided by Volkswagen by their press fleet.

The accusations hinge (no pun intended) on two plastic covers for the trunk hinge mechanism (pictured above). A VW press car had the covers installed to hide the bare metal hinges and wiring loom used on the Passat, but the customer cars purchased by CR didn’t have those. As CR’s Jon Linkov notes, if VW was willing to go the extra mile for a set of hinges, other crucial areas, like sound deadening, suspension tuning or engine performance could have been altered as well. Consumer Reports said that they’ve experienced these things before, and that it raises larger issues of impropriety.

[Source: Consumer Reports]

The 2013 BMW 3-Series will start at $35,775 when it goes on sale in February. For that amount of coin, you can walk away with a base model 328i, while a 335i will set you back $43,275.

The base price for the two models has only been bumped up by $300-$350, but the newest 3-Series is a radically different car from the outgoing version, chock full of technology and gadgets that weren’t previously available like a self-parking system and a no-charge 8-speed automatic gearbox. 328i models now get a turbocharged 4-cylinder making 240-horsepower, while the 335i continues on with BMW’s legendary turbocharged inline-6.

Diesel, hybrid and wagon variants will all arrive and some point, as will a coupe and convertible, but the only confirmed tidbit we have is that an M-Sport edition will be hitting our shores in July, and carry a $5000 premium over the base car. Consider the M Sport a stop-gap until a new M3 gets here in a few years time.

Reports from sources within Volkswagen has revealed intents to replace its less popular 2.5-liter five-cylinder engine for a new 1.8-liter turbo four-cylinder engine.

This smaller turbocharged engine is based on the staple 2.0 liter turbo engine found in the GTI, and are already found in Volkwagen’s European offerings. Producing 158-hp and 185 lb-ft of torque, the new 1.8 is capable of 33-mpg on the highway when placed in a manual VW Jetta.

While the figure falls significantly short of the Chevrolet Cruze Eco’s 42 mpg, Volkswagen can still benefit from the use of the engine as its 2.0 FSI origins can allow the company manufacturing efficiency and allot the assembly of both engines under one facility.

[Source: Car&Driver]

The Chevrolet Volt will be able to qualify for California’s High Occupancy Vehicle lanes in 2012, after General Motors announced the availability of a Low Emissions Package for their hybird-electric car.

With traffic congestion in California a major annoyance for motorists, the ability to use the HOV lane – via one of the state’s 40,000 permits – will be a boon to Volt drivers. Motorists are normally barred from the HOV lane unless a vehicle has two or more passengers, but the sticker allows for single occupancy vehicles to be exempted.

A revised emission control system and catalytic converter help the Volt achieve Low Emissions status. Volt buyers in California will also be eligible for a total of $9,500 in state and federal tax credits.

For a long time, the only brand with a poorer reputation than Hyundai was Kia. Despite being a subsidiary of Hyundai, Kia‘s vehicles were often a grade lower in quality, using decade-old Mazda engineering and projecting an image of cheap vehicles for those with poor credit (or poor taste).

Now, Kia is on a roll, with sharp designs and technology borrowed from Hyundai, which has become a segment leader in many respects. Kia’s Optima sedan is outselling the Hyundai Sonata in their home market of South Korea, something few would have predicted even a year ago.

Executives at Hyundai fear that sales cannibalization will occur if action isn’t taken to differentiate the brands. Hyundai is said to become the more premium, upscale brand while Kia will take on a sportier image. In the United States, the company’s lineups have a lot of overlap, but in the rest of the world, more differentiation exists, and Kia and Hyundai have established dominant positions in different reasons.

[Source: CNBC]

Porsche took the wraps off their Panamera GTS sedan Wednesday at the 2011 Los Angeles Auto Show, billing it as “The Purest Panamera Yet”. The Panamera GTS offers a 30 horsepower increase over the standard Panamera 4 and Panamera 4S, and comes with standard all-wheel drive and a 7-speed PDK dual-clutch gearbox – no manual transmission will be available.

Upgraded brakes, a 10mm lowered ride height and Porsche Active Suspension Management are all standard, as are 5mm wheel spacers to give the car a wider track. Bespoke interior fittings distinguish the Panamera GTS from plebian versions. A revised intake and exhaust will give the driver more seductive V8 engine sounds, and a standard Sport Chrono pack and Launch Control allow for a rawer driving experience.

The exterior is given minor aesthetic tweaks, as well as an adjustable spoiler borrowed from the Panamera Turbo, but only the Porsche faithful will be able to spot the real differences. GTS motifs, both inside and out, complete the whole package. Pricing has not been announced.

Hit the jump for the official press release

Gallery: Porsche Panamera GTS

Continue Reading…

Cadillac‘s long awaited XTS flagship has been officially revealed with a whole suite of technology features that should help it establish a niche among buyers interested in more than just rear-drive handling dynamics.

The XTS is based on a front-drive architecture, a move that has come under fire among some critics as counter-productive, considering that rear-drive is a supposed hallmark of prestige employed by European and Asian rivals. With the XTS, Cadillac has chosen to use a Haldex all-wheel drive system, similar to brands like Audi and Volvo, which should match nicely with the direct-injected 3.6L V6, as well as provide a strong selling point in Snow Belt states.

On the performance side, the XTS will also employ a number of GM’s most advanced techologies, including Magnetic Ride Control, a rear air suspension, a HiPer Strut front suspension and Brembo brakes. Traditional large-sedan attributes have also been given sufficient attention – the XTS boasts 4 more inches of rear seat leg room and more trunk space than most German competitors – no doubt a way to position the XTS as a livery car as well.

As with most modern premium cars, the XTS places a heavy emphasis on both safety and technology, with the two themes interwoven in a variety of systems that Cadillac is heavily touting. The XTS will use a variety of radar sensors to control features like Adaptive Cruise Control (which can speed up or slow down the vehicle automatically), Front and Rear Automatic Brakes (which can bring the vehicle to a complete stop if necessary to prevent low-speed collisions) and Rear Cross Traffic Alert (which lets the driver know if there is pedestrian or vehicle traffic when backing out of a parking spot). The XTS will also have a vibrating alert placed in the front seat, which will allow the XTS to warn the driver of threats on either the left or right side that may be out of sight.

Other safety features like a Blind Spot warning system and a Lane Departure warning system will be made available, as well as 10 standard airbags. Cadillac’s CUE infotainment system will make its debut on the XTS, with an 8-inch screen that is said to offer an iPhone-like touch screen interface. An LCD instrument panel that can be completely customized will also be available, and is said to be an industry first.

GALLERY: 2013 Cadillac XTS

Check back later as AutoGuide brings you live shots of the Cadillac XTS at its live reveal at the Los Angeles Auto Show.

NHTSA is ramping up its investigation into the Saturn Aura after numerous complaints of the vehicle moving while in park or accelerating in the opposite direction to which the driver intended.

A total of 33 complaints have been received by NHTSA and GM combined, covering both 2007 and 2008 model Auras. So far, an engineering analysis is underway, but this is considered a step on the way to a full recall of the vehicles. One incident saw an Aura driver place the car in park and exit the vehicle, only to be struck by the car as it rolled backwards. The recall could affect as many as 65,000 cars.

[Source: Reuters]

With sales of the Chevrolet Cruze slowing down, General Motors will idle their Lordstown, Ohio plant to help bring supply levels of the Cruze down.

Dealers currently have a 73-day supply of the Cruze, higher than the industry average. GM hopes that demand will catch up with supply by closing the plant for a week.  The Lordstown plant has been running three shifts plus a weekend shift for much of the year. The Cruze enjoyed strong sales in 2011 but the resurgent supply of cars like the Toyota Corolla and Honda Civic has seen consumers flocking back to imports, negatively impacting sales of the Cruze.

[Source: Automotive News]

General Motors is recalling a certain production run of Cadillac CTS models built between October 21 and October 26, 2011. According to reports, “the power vacuum brake boost pushrod retention nut may not be torqued to the proper specification.”

This defect could cause catastrophic consequences, specifically brake failure, and lead to accidents. Cadillac dealers began a recall on November 1st and will inspect the part and fix the defect if necessary. Owners can contact 800-458-8006.

[Source: NHTSA]

Lexus has dropped a few serious hints that it is planning a coupe version of its all-new GS350. While attending the launch of the luxury sedan (we’ll have driving impressions once the embargo lifts November 23rd) we spoke to Lexus Corporate Manager of Product Planning Ben Mitchell, pushing him for details on a possible GS-F to sit as a rival to the BMW M5.

To our dismay Mitchell responded that there was “nothing to announce”, but then surprised us with a shred of info, disguised as a question. Speaking to a group of assembled journalists he asked our impression of the Audi A5/S5.

Response to the car was unanimously positive. The two-door Audi models are roundly considered to be some of the most beautiful vehicles on sale today, and we enjoyed our time with the S5 immensely.

As though Mitchell’s question didn’t reveal enough about Lexus’ intentions, he also commented that with the demise of the SC430, there is now a space in the automaker’s lineup that needs filling.

Of course, this isn’t an official confirmation, but considering the legendary silence that greets most questions regarding future products, this is a very strong hint that there will be another two-door Lexus joining the lineup beyond the current IS250C and IS350C models. And judging by our time spent behind the wheel of the new GS, this is one to wait for.