News in brief

U.S car sales predicted to remain strong in August:

U.S car sales are forecasted to remain strong if the current pace continues. August car sales will equal around 1.1m. This investigation believes that fleet sales have been increasing steadily compared to last month.

"It looks like bargain hunters are getting serious about taking advantage of the model year-end deals. But this is a bargain-driven market, so as the deals dry up, sales will likely trend down from here" said CEO Jeremy Anwyl. Click here for more.

2011 Hyundai Genesis gets power increase, Veracruz receives extra kit:

Before launching the revised Genesis sedan for the 2012MY, Hyundai has modified the 2011 Genesis, by adding more power. The 4.6 litre Tau obtains a 10bhp boost, which means total power output is now rated at 485bhp on premium unleaded, 378bhp on regular. The revised Genesis is on sale now.

Meanwhile, Hyundai’s flagship SUV, the Veracruz has its Premium Package updated. Optional on the GLS trim, the package now includes electric sunroof, electrically operated tail-gate, auto-dimming rear-view mirror w/compass and HomeLink and auto-dimming exterior mirrors w/ auto-tilt in reverse.

Kia kills-off the Rondo in the U.S:

Kia has quietly axed its unloved Rondo/Carens compact MPV in the U.S, due to sliding sales. Kia said the 2010 model is available in dealerships but hasn’t decided on a 2011 model.

In 2009, Kia only sold 14,206 Rondos, down 50% from 2008, in which Kia sold more than 28,645 units. The Rondo/Carens is available in Canada, where it’s selling very well.

Volkswagen updates its 1.2 litre petrol engine for Fox city-car:

With the Euro5 emissions law nearing, VW has decided to update its 1.2 engine. Total output is now 60bhp, up from 55bhp while being a-little more economical.

With a top speed of 95mph, the Fox does 48.7mpg (5.8l/100km) on the combined cycle. The 1.2 litre petrol engine is available on all Fox trims with German prices starting at €9,825.

The 60bhp 1.2 litre Fox can be ordered now.

Researchers tinkering with bio-fuel (UK)

Scottish researchers are tinkering with bio-fuel – by adding waste from Scotch whisky to the mix.

The researchers have produced a type of fuel from distilled Scotch whisky, from Diageo's Glenkinchie Distillery.

The fuel uses "pot ale" — the liquid deposit from copper stills — and "draff" or leftover grain. Scientists claim it can be used in ordinary cars without altering the engines. Observers say the whisky bio-fuel has "earned a toast" from ecologists.

The fuel can also be used to make other green renewable biochemical’s, such as acetone, the main ingredient in most nail polish removers.

Supporters of the bio-fuel resulting from whisky byproducts say it could offer a new supply of revenue for one of Scotland's biggest industries, as well as helping to ease reliance on foreign oil.

Photo Gallery: 2011 MINI Countryman

The Mini Countryman will start from £16,000 when it goes on sale in September. The Mini Countryman will go on sale with the choice of three petrol and two diesel engines, varying in power from 89bhp in the One D Countryman to 181bhp in the Cooper S Countryman.

The Countryman is 398 mm longer than the regular Mini (at 4,097mm), 316 mm wider (at 1,789 mm) and 170mm higher (at 1,577mm). The Countryman offers 350 litres of luggage space and 1,170 litres with the rear seats folded.

Standard equipment includes air conditioning, DAB digital radio, rear parking sensors, alarm, Dynamic Stability Control, 6 airbags and a tyre pressure warning system.

The ALL4 models will cost an additional £1,065 for the Cooper D and £1,220 for the Cooper S above the standard front wheel drive Countryman versions.

The ALL4 is front wheel driven in dry conditions, but when wheel slippage is detected on the front wheels or if the car is being driven passionately, an electro-magnetic clutch, located on the rear axle, engages drive to the rear wheels.

BMW says that to ‘enable this imperceptible change to the driven wheels a propeller shaft from the front axle is driven constantly and is ready to direct drive forces from the front axle to the rear in lightning time’. The amount of power sent to the rear wheels is ‘infinitely variable between one per cent and 100, depending upon the driving conditions.’

So, your £16k will buy you a Countryman One with a 1.6, 96bhp petrol engine. Combined fuel economy is 47.9mpg and CO2 emissions are 137g/km. The Countryman One D commands a £1,000 over the petrol variant. The 1.6D has 90bhp, does 64.2mpg combined and emits 115g/km.

More information can be found here.

Full photo gallery of the 2011 MINI Countryman:

2011 MINI Countryman

2011 MINI Countryman

Chevy Corvette due May 2011 (UK)

Chevrolet UK has revealed that the Corvette supercar will arrive in the UK in May 2011. Officially imported Corvettes will be sold through dealerships.

UK customers have been disadvantaged of Corvettes due to the previous importer, Kroymans who folded last year. Chevrolet UK is looking to obtain European type approval for Corvette’s complete model range: C6, Z06, Grand Sport and the ZR1.

The Corvette will be sold along with the Camaro coupé and convertible models, last officially available in the UK in 1976. Both cars will be available simply with a 426bhp 6.2 litre V8 engine. European type approval for the Camaro is likely to be approved in Spring 2011.

Chevrolet is presently developing a distribution, parts and retail network for the Camaro and Corvette, as well as finalising the Corvette price. The first UK dealer to sell the cars will be Bauer Millett, Manchester.

"These cars won’t be volume sellers, they’ll be brand builders," Chevrolet UK MD Mark Terry said. "Camaro and Corvette are both icons and can act as a hook to other cars in our line-up."

No diesel-hybrid for MINI

Wolfgang Kuttler, Mini’s diesel-engine manager, has rejected the idea of launching a diesel hybrid even though BMW engine partner, PSA Peugeot-Citroen is investing heavily in the idea.

He said that the system called PSA Hybrid4 – set to show-up on the Citroen DS4 & Peugeot 508 – is “a very expensive and heavy system”.

He added, “It only brings fuel savings in town, not on the faster, more open roads commonly used in Europe. We’ll never use a system like it at Mini for that reason.”

Kuttler is said that Mini is concentrating on improving fuel economy in its diesel engines, using other techniques.

“I believe that we are currently getting about 50% of the efficiency available in diesel engines,” he said.

“We intend to concentrate on improving ancillary drive, lowering internal friction, increasing injection pressure and optimising turbo response, among other aspects. Variable valve timing is a possibility but it’s low down on the priority list.”

BMW has previously declared that it’s working on a 3-cylinder turbo-diesel engine, but Kuttler said this arrangement will need a 1.5 litre capacity or more — “not only to keep the BMW and Mini performance values but also because it is not efficient to have an engine so short of power that it must be worked hard”.

Renault workers to protest about importing Latitude sedan

Renault employees in France are looking to organise a demonstration against Renault’s imported new mid-sized Latitude sedan. The Latitude is manufactured in South Korea.

According to French media, the French GTC union is arranging to ‘bus in’ factory workers to the Paris motor show, where the Latitude will premier. Unions at PSA Peugeot-Citroën are believed to be anxious at more home-brand production being sourced abroad. Renault is also facing resistance from its own Government, which owns 15% of Renault, on introducing international built models.

The Latitude sedan underpins the Samsung SM5; itself based on the Laguna platform and will not be sold in the UK. Renault is eager to keep its footing in Europe’s D-Segment, predominantly because of slow sales of the current Laguna.

Reports quote French industry minister Christian Estrosi saying “he would be keeping a close watch” on the Latitude project because Renault promised the import volumes would remain “marginal”.

The French Government, which has two representatives on the Renault’s board, has a record of leaning on domestic manufacturers to encourage them to purchase more components locally and to guarantee domestic production.

Renault’s existence in the large car market within Europe has been dwindling for several years. The mature Espace MPV has been outsold by the younger Ford S-Max, the aging, upscale Vel Satis sedan is a virtual failure and Renault has roughly sold 90,000 Lagunas last year, half of the company’s projected sales plan.

Figures from JD Power propose that Renault currently holds 3.4% of the European large car market, down from 7.5% in 2003. Renault has still not declared its plans for replacing the Espace and Laguna, despite confirming the factory that makes them will gradually shift to van production.

Suzuki Swift pricing announced (UK)

Suzuki's all-new Swift supermini will start at £9,995 for the entry-level 1.2 SZ2 3dr, rising to £13,245 for the 1.2 SZ4 5dr automatic when it launches in September. All Swifts come fitted with a 5 speed manual transmission while mid-spec SZ3 and range-topping SZ4 are available with a 4 speed automatic transmission.

The new Euro5 1.2 VVT petrol engine replaces the outgoing 1.3 VVT and is cleaner and more powerful with 94bhp and 118Nm of torque. Top speed is increased to 103mph. Exhaust emissions are lower too, with manual cars emitting 116g/km and combining fuel economy figures of 56.5mpg (5.0l/100km). The automatic has combined fuel economy of 50.4mpg (5.6l/100km) and emits 129g/km.

The Swift comes in three different trim-levels, each adding more standard equipment.

The entry-level SZ2 comes with remote central locking, electric front windows, drivers seat height adjustment, 60/40 split folding rear seats, electrically adjustable & heated door mirrors, trip computer, 3-spoke leather steering wheel w/audio controls, 6 speakers w/CD player, MP3 player & USB port, 15" steel wheels, height adjustable steering wheel, body-coloured door mirrors, handles and bumpers, ESP and 7 airbags (twin front, side, curtain & drivers knee). The 3dr SZ2 starts at £9,995 with the 5dr starting at £10,445.

Mid-spec SZ3 adds air conditioning and 16" alloy wheels. Prices start at £10,995 for the 3dr model, £11,445 for the 5dr and £12,445 for the auto, which comes in 5dr form.

Range-topping SZ4 features climate control, rear electric windows, keyless entry & start, height & reach adjustable steering wheel, Bluetooth, front fog lights, rain-sensing headlamps and privacy glass. These amenities come at a price tag of £11,795 for the 3dr Swift, while the 5dr starts at £12,245. The automatic adds £1,000 on top.

Once the car has been on sale for a few months, Suzuki will add a host of accessories, in the mean-time, the only option you can specify is metallic paint at £390.

The 1.3 DDiS goes on sale Spring 2011 and will have economy figures of 67.3mpg (4.2l/100km) with CO2 emissions of 109g/km. Instead of phasing out the 2009MY Swift, Suzuki will continue to sell it alongside the new Swift. It will be renamed 'Swift SZ'.

In order to sway potential consumers, Suzuki is offering 0% APR typical finance over 3 years on the new Swift, with 50% minimum deposit. Selected online car brokers are even offering upto £500 off the list price.

Citroen DS3 Racing pricing announced (UK)

Citroen UK has revealed pricing and specification on its DS3 flagship model; the DS3 Racing. The DS3 Racing will start at £23,100 when order books open on Wednesday 1st September. The price tag includes VAT at 20% because for UK deliveries will start in January 2011.

Citroen said the DS3 Racing will be powered by a specially tuned 1.6 litre THP petrol engine. This engine produces 207bhp and 275Nm (204lb-ft) of torque, with a top speed of 146mph. The DS3 Racing records a 0-60mph time of 6.5secs. Combined CO2 emissions are rated at 149g/km.

However, Citroen reports that it’s had more than 1,500 enquires about the DS3 Racing through its website and only 200 right-hand-drive models will arrive in the UK, so a sell-out is anticipated.

Only two colours are available; black with orange roof or white with carbon grey roof. The colours of the roof are matched to 18” alloy wheels, door mirrors, grille surround, tailgate spoiler and chevrons. On black coloured cars, the dashboard fascia too.

The DS3 Racing chassis has been altered by Citroen Racing; they fitted new dampers, widened front and rear tracks by 30mm, lowered the ride height by 15mm and upgraded the brakes with four-pot callipers and revised discs at the front.

Standard equipment is based upon the DS3 Sport and additionally features genuine carbon fibre parts, auto-dimming rear-view mirror, 18” alloy wheels, rear parking sensors, Alcantara/Trami cloth DS3 Racing front sports seats, mats and key, rain-sensing windscreen wipers and dusk-sensing headlamps.

Click here for more info.

Kia recalls SOUL crossover due to steering defects (U.S)

The NHTSA (National Highway Traffic Safety Administration) has commenced an assessment in a potential steering fault on approximately 51,182 2010 KIA Soul models.

The feds said they received one complaint from an owner who purchased a 2 month old 2010 Kia Soul with 4,300 miles on the clock. The owner said the steering shaft detached itself from the hand wheel and fell into a position that hindered with the brake pedal, ensuing in complete brake and steering loss.

"ODI (Office of Defects Investigation) is very concerned about this failure in that it occurred without warning on a new vehicle at low mileage and resulted in a complete loss of steering as well as a compromised brake system. A preliminary evaluation has been opened to assess the alleged defect in the subject vehicles."

Kia issued the following statement on the NHTSA preliminary evaluation:

"Kia Motors America has been actively cooperating with NHTSA's Office of Defects Investigation since being advised by the acting director late last week that an investigation was being opened regarding the 2010 Kia Soul. Although the investigation is based on a single incident that did not result in an accident or injury, the entire Kia Motors organization — including our supplier base — is reviewing manufacturing processes with the goal of quickly determining if there is a manufacturing cause and preventing the issue from reoccurring. KMA is committed to sharing information and findings with NHTSA's ODI on an ongoing basis in order to reach a prompt resolution."

No international models have been affected.

Hyundai to produce budget car for Russia (RU)

Hyundai is preparing to launch production of an all-new budget model exclusively designed for the Russian market. The car will be manufactured in St. Petersburg.

Initial production will begin in September with full production coming into full swing in January 2011.

The new compact sedan will rival directly with Volkswagen’s Polo sedan – another car design especially for Russia – and will start from approximately £6,400 ($10k).

Hyundai is yet to name the car, however, Russian media speculate that the new model will be powered by either a 1.4 litre 109bhp petrol engine or a 1.6 litre 122bhp petrol engine.

The forthcoming sedan will underpin the all-new Elantra/Avante. Like the Polo sedan, the newcomer will have suspension tuned to Russian roads.

Mazda recalls 5 compact MPV and 3 compact family car (UK/U.S)

Mazda UK is contacting owners and recalling in excess of 10,200 3 and 5 models to offer free check-ups and repairs on the power steering system. In the U.S, Mazda is recalling 215,000 2007 – 2009MY vehicles. The NHTSA (National Highway Traffic Safety Administration) said the affect cars could suffer from sudden loss of power in the steering system.

Mazda has found out that tiny particles could clog the power steering pipes and cause the electric pump to shut down. Drivers would still be able to steer the car with extra effort, even though the power assistance would vanish if the pump packed up.

In the UK, there have been 2 reported cases of power steering malfunction, however, no accidents or injuries have been reported.

The recall affects 10,268 Mazda3s with 1.6 litre diesel and 2.0 litre petrol engines, and Mazda5s with 1.8 litre and 2.0 litre petrol engines manufactured between April 2007 – November 2008.

Fixing the pump and associated parts will take between 90 - 110 minutes, and will be carried out free of charge. Mazda USA is suffering from stock shortages regarding the relevant parts.

"The first phase of mailing of owner notification letters will begin on or before September 15, 2010 and the second phase mailing will begin in September 2010 and be completed in February 2011."

If you turn out to own one of the recalled models, you can contact Mazda's customer assistance centre for more details at 1-800-222-5500.

BMW X1 outsells Audi Q5 by 407 units (EU)

BMW’s baby SUV, the X1 outsold Audi’s compact SUV, the Q5 by 407 units across Europe for the first six months of 2010. Audi sold 43,660 Q5s from January – June, compared to 44,067 X1’s sold by BMW. Compact SUVs rule the roost, only the BMW X5 appears in the top five selling SUVs.

Although the BMW X1 has no direct rivals and – it’s classed as a ‘ultra compact premium SUV’ – until Audi’s forthcoming Q3 arrives, its closest rivals in terms of segment would be the ‘compact premium SUV’ market.

Marketing aside, the Volvo XC60 (29,616 units), Land Rover Freelander (20,138 units) and the BMW X5 (16,565) rounded out the top five selling SUVs in Europe for the time period.

Sales of the X1 are yet to slow, BMW claims to have sold 11,483 units in July alone. The X1 has a few advantages of its ‘rivals’; it’s cheaper to buy, offers a decent drive and is car-like.

However, 2011 could see a shake-up as Mercedes, Infiniti and Audi will be launching new SUV’s.

Toyota planning small RWD coupé

Toyota has started developing a cost-effective, RWD coupé from a hot-hatch concept.

The coupé is being prepared in honour of Toyota’s chief engineer, Hiromu Naruse, who was killed in a road traffic accident, driving Lexus LF-A in Nürburgring, Germany. Naruse had an idea of a rear-wheel-drive, front engined model for youths.

The forthcoming model will underpin the GRMN Hot Hatch Concept which premiered at the Tokyo Auto Salon at the start of this year. The forthcoming model is intended to give affordable performance and appeal than the FT-86.

When Naruse was asked at the Auto Salon what his young engineers wanted to build, he said, “A car that is a blast to drive and rear-wheel drive and that is priced low enough to get younger buyers into it."

The Hot Hatch Concept was produced on existing platforms and engines, thus keeping overall costs down. Underpinning the Aygo platform, it featured a 1.5 litre petrol engine that powers the rear wheels and weighs less than 1,000kg. It features a fairly sophisticated double wishbone rear suspension but is likely to be priced from ¥1.4m (£10,250).

The new coupé will slot below the larger FT-86 in the Toyota line-up. The GRMN team has been given the brief of ‘fun to drive’ and ‘cheap’ for the car, which could be built at the same factory in Osaka that produces the 660cc Daihatsu Copen.

The new model could beat the FT-86 to the market too. Internal sources suggest that it will launch in 2012, priced at least £8,000 less than the FT-86.

Naruse was 67 years old and had been with Toyota since 1963.

Mahindra preferred bidder for SsangYong

Mahindra & Mahindra, the Indian SUV manufacturer has been named as a favoured bidder for SsangYong, the failing South Korean car firm.

SsangYong racked up debts of $634m (400m) and is presently being reorganised under court control. Last year saw fierce protests from SsangYong’s employees, postponing the launch of the all-new C200 compact SUV.

If Mahindra & Mahindra decide to purchase SsangYong, it would give the Indian firm admission into the South East Asian market, where it has no existence and new technology including diesel engines. Mahindra has a fine record of organising industrial quarrels.

Mahindra has alleged to bid roughly $400m (£250m) for the troubled company, which has a 2% market share in South Korea. Mahindra shares dropped 1% once the news was announced, however, industry analysts said that the purchase will benefit the Indian firm in the future.

“The acquisition could be slightly negative for Mahindra in the near term because SsangYong is a small player and scalability is limited. So Mahindra will have to make some investments," said an analyst from Prabhudas Lilladher. "I am guessing it would take two to three years for Mahindra to turn around the company. That is when we expect the benefits to kick in.”

Ford terminates sales of Focus ST (EU)

Following in the footsteps of the Honda Civic Type-R, Ford has announced that it will axe the Focus ST due to strict emission regulations.

The 2.5 litre turbo-charged 5-cylinder petrol engine has joined Honda's 2.0 litre petrol engine in falling foul of the Euro5 emission law, due in January 2011.

An all-new 4 cylinder 2.0 litre turbocharged engine will replace the 2.5 five-pot and is anticipated to debut at the Paris motor show.

British production of the Honda Civic Type-R will diminish in October because Honda has decided to axe it from the UK line-up, rather than alter the engine. In excess of 12,000 Civic Type-Rs have been purchased in the UK since January 2007.

Sales of the Civic Type-R will end in December in the UK and it will continue to be sold in Japan, South Africa and Australia until next year, however, a replacement model has not been confirmed.

Other Euro5 victims include the 3.2 V6 engine in the Alfa Romeo Brera, Mazda RX-8 and the VAG 5.0 TDI V10.

BMW forthcoming Gran Coupé still unnamed

The head of R&D at BMW, Dr. Klaus Draeger has divulged that the forthcoming Gran Coupé will be placed along with the 6 Series with regard to technology and pricing, however, no actual nameplate has been confirmed for production.

Dr. Draeger said that the upscale coupé will certainly make production sometime in 2012 but whether it will be pitched as a 6-Series 4dr coupé or an 8 Series was not established. The Gran Coupé will launch after the 6 Series Coupé next year.

The Gran Coupé Concept has been designed to blend the knack of a grand tourer and a sports car. The roofline is 100mm shorter than that of a 7 Series sedan.

The basics of the upcoming coupé will be shared with the new 5 Series and 7 Series cars. That’ll mean a huge engine variety; a fusion of 6 & 8 cylinder petrol and diesel engines, mated to an 8 speed automatic gearbox. Dr. Draeger even said there is a possibility of a hybrid variant.

“We are in position to bring out an additional hybrid version since we are using the same powertrain architecture as the 5-, 6- or 7 Series,” he said.

In addition to testing a Audi A7 coupé rival, expect to see the Gran Coupé Concept’s long wheelbase, arched bonnet, shark nose, backward set glasshouse, low outline and short front overhang become part of BMW’s trademark design language, as well as its uneven kidney grille, wide front air intake and frameless doors.

“It’s true that the Gran Coupé points to a specific model, a saloon with the presence and elegance of a 7 Series but a more dynamic, sporty character: much more of a driver’s car,” said BMW design chief Adrian van Hooydonk at the car's launch in China earlier this year. “We’re convinced that we should make a car like this.”

In related news, BMW could also be debuting a 6-Series GT concept at the Paris motor show. Dr. Klaus Draeger accidently exposed that a shooting-brake 6 Series has already been created.

The 6 Series shooting brake was design by chief of design, Adrian Van Hooydonk. The styling also hints at the Gran Coupé Concept. The Dutch designer pens the design of many MINI’s, Rolls-Royce cars and the BMW 6 Series & 3 Series coupé. Many believe Hooydonk enthused the ‘Bangle Butt’ on some current BMW models.