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Mercedes A45 AMG (2013) first pictures of new hot hatch

This is the Mercedes A45 AMG: the first time Merc’s in-house tuning arm has tried its hand at building a hot hatch. Packing 355bhp, all-wheel drive and a seven-speed dual-clutch paddleshift transmission, the A45 AMG will outpace a Porsche 911, but cost less than £40,000. It’s on UK sale from July 2013, but if you can’t wait that long, Merc’s baby barnstormer is appearing at the Geneva motor show from 5 March 2013.

The 500-hp club: The room is getting crowded

At a time when fuel economy counts for just about everything, there's still a horsepower war raging in the United States. The number of fire-breathing wedge-shaped supercars and hot sedans and coupes that can pump out 500 hp or better has nearly doubled in the past five years to more than 70. A decade ago there were just two members of the 500 hp club in the United States: the Ferrari 575M and Lamborghini Murcielago.

Lotus V8: the new engine plan in full

Lotus has confirmed details for its new inhouse V8 engine family, which will make its first road car appearance in the 2013 Esprit. Responding to feedback which said the 'New Era' plan to launch five new models was weakened by its reliance on Toyota engines, the new management team decided last Christmas to design and develop its own engine. 'The feedback from customers was "how can you justify a £100,000 car with a Toyota engine?",' said chief executive Dany Bahar.