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Volkswagen hits back, weighs making a bid for Porsche

Volkswagen is considering an audacious reverse-takeover bid for its majority shareholder, Porsche, in a twist in the drawn-out struggle for control between the two German carmakers. The Volkswagen Group's supervisory board is said to be weighing the possibility of purchasing Porsche AG, in a move that would relieve its holding company, Porsche SE, of massive debt that industry analysts suggest the company may not be able to fund should the world's financial crisis drag on well into 2010--a scenario put forward this week by the International Monetary Fund. The secret plan emerged as shareholders were set to convene at Volkswagen's annual meeting on Thursday, and it comes after Porsche revealed that it is carrying some 9 billion euros ($11.73 billion) in debt, most of it owing to interest on loans taken out to purchase its 50.8 percent stake in VW.

Enjoy the Show: Download Detroit 2009 tour now

It's not too late to visit the Detroit auto show, which runs through Sunday, Jan. 25. If you're going in person, don't forget to download the AutoWeek editors' audio tour of the show for your mobile device.

Mitsubishi Compact Crossover revealed

The new Mitsubishi Compact Crossover Mitsubishi is working to re-align itself in the market place. It wants to be seen as a manufacturer of ‘environment-friendly passenger cars & crossovers’ instead of an SUV focused manufacturer. It sees cars like the i-MiEV, Colt, Lancer, Grandis and Outlander as the future, although it intends remaining in the ‘Authentic off-roader’ segment with cars like the Shogun.