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Audi develops new A2; plans for U.S. unclear

Audi is developing a reincarnation of the A2 small car that will slot between the A3 and the A1 minicar introduced in Geneva last week. "There's clearly room for another product and another concept between the A3 and A1," Audi CEO Rupert Stadler said on the sidelines of the Geneva auto show. Michael Dick, Audi's board member for technology, said in an interview that the company's push to add electric variants will play a role with the next-generation A2 "in the near future." The German media have reported that the A2 is expected by 2014.

Peugeot 2008 DKR heading for the Dakar Rally. Not that it looks much like a 2008

The Peugeot 2008 DKR (pictured) is heading for the Dakar Rally After steering clear of the Dakar Rally for a quarter of a century, Peugeot is back in the endurance rally game with the Peugeot 2008 DKR, a rally car that shares its name with Peugeot’s 2008 Crossover – but little else. Instead of the almost cutesy looks of the 2008, the 2008 DKR gets looks that could have come from Mad Max with a sinister-looking black paint job, just two doors, short overhangs for better obstacle negotiation, 37″ off-road tyres and a thumping great wing at the back. Unlike most cars that tackle the Dakar, Peugeot has decided that rear-wheel-drive is the way to go as it allows for bigger wheels and more suspension travel, rather than the four-wheel-drive preferred by the majority of entrants.

L.A. auto show: 2011 Chevrolet Cruze dials in 40 mpg

A key piece of the future of General Motors will be on display next week in Los Angeles. Yes, the Chevrolet Volt will be there. But so too will the 2011 Cruze, the new compact car in Chevy's lineup due towards the end of next year that promises up to 40 mpg on the highway.