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UK Government cuts car aid, EV grants at risk

By Tim Pollard Motor Industry 30 June 2010 15:48 Britain's business secretary Vince Cable today fired a warning shot across the bows of the car industry, saying that subsidies would end and warning that the pledged £5000 subsidy off the first electric cars was in peril.'Our starting point is very clear,' he told delegates at an automotive summit arranged by the Society of Motor Manufacturers and Traders. 'We've moved on from the era of subsidies. We just have to be realistic about what's affordable.'Cable said the new coalition Conservative-Liberal Government had not yet decided whether or how to implement the new low-carbon vehicle subsidies promised under Labour, which had set aside £250m in initial funding.'It is still actively under consideration,' said Cable.

Lexus gets new focus

Battered by recalls and public inquisitions, Toyota is hoping to restore its once-pristine image with new hybrid products and a renewed focus on Lexus. Lexus increasingly will be positioned as a “global premium brand,” the company said on Wednesday, and see improved styling, more hybrids and better service. The brand's sales have fallen 9 percent this year, to 26,674 in the United States.

Opel Adam going rallying

Opel is adding a bit of rally credibility to the new Adam by taking it rallying with an Adam R2 rally car for a one-make cup. But perhaps GM Europe are hoping to inject a bit of performance credibility in to the uninspiring mechanical offerings the Adam currently offers with the revelation that they’re making a rally Adam prepared to basic R2 spec, which means a tweak or three from the standard production car. That means upgrades to the engine, suspension, brakes and gearbox to produce an Adam rally car that’s an affordable entry point for young drivers and Opel are aiming to compete in the ADAC Opel Rally cup with the Adam R2.