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Jaguar confirms small saloon – and gets the thumbs up from Number 10

Jaguar will launch a small saloon beneath the XF in 2015, the company confirmed on the eve of the Frankfurt motor show. The baby Jag (seen testing as a disguised evaluation mule in our spy shots gallery) will be constructed from aluminium and built in the West  Midlands, creating around 1700 jobs. The news prompted a call to Jaguar from the office of Prime Minister David Cameron, offering Number 10's congratulations and support with the company's product expansion.

Automakers try to stop increase in ethanol limit to 15 percent of gasoline

Automakers are seeking to head off an EPA ruling that would allow gasoline to contain 15 percent ethanol, up from 10 percent now, and they've won some bipartisan congressional support. The two main automaker industry lobbies have argued that the U.S. Department of Energy has done insufficient testing to assure that gasoline containing up to 15 percent ethanol won't harm vehicles.

BMW confirms X4 production

BMW has confirmed plans for an X4 SUV, a spokesman told Autoweek. As the name implies, the ute would slot in between the X3 and the X5 and likely get an M variant. BMW would distinguish the X4 from the other models with a bolder face and perhaps a curvier body--much in the manner in which the X6 stands out from the rest of the SUV line.