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New Smart ForTwo and ForFour set for 2014 unveil

Mercedes-Benz's struggling Smart city car division is seeking to add a new dimension to the urban driving experience with its third-generation ForTwo, currently undergoing the final phase of a three-year test and development program ahead of a planned unveiling mid next year. Set for North American launch in 2015, the ultra-compact two-seat hatchback represents a fresh chapter in operations for Smart, which has recently gained greater independence from parent company Mercedes-Benz as its boss, Annette Winkler, attempts to stem years of financial losses after almost a decade of rebuilding following its short-lived joint venture with Mitsubishi. The new ForTwo, known internally as project C453, has been developed in a joint engineering program with the upcoming second-generation ForFour and its sister car, the third-generation Renault Twingo.

Peugeot 308 hits almost 100mpg

Peugeot Peugeot has proved that three-figure fuel economy figures for petrol engines might not be too far from becoming a reality, as its new 308 has set what it claims is a record of 99.1mpg. The 2014 European Car of the Year, powered by a 1.2-litre turbocharged petrol Puretech engine, covered 1,124.7 miles on just one tank of fuel when tested on a track in Spain. Top 10 most economical carsPeugeot 308 review (2013 onwards) In doing so, it took more than 32 hours of driving to consume the 51.4-litre contents of its fuel tank.

Mercedes and Daimler crush 300SL Gullwing imposter

Mercedes-Benz Classic recently destroyed an ersatz 300 SL after the body was seized by German customs officials. The case began when a German company built a fiberglass copy of the Gullwing's body. According to a court ruling, the shape remains under copyright protection just as it did upon its introduction in the 1950s.