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Iacocca shows off his custom 45th-anniversary Mustang

The man behind the original Mustang--Lee Iacocca--is back with a custom-built 2009 version that celebrates 45 years of the iconic pony car. Iacocca unveiled a sleek, performance 'Stang named after himself, the Iacocca Silver 45th Anniversary Edition. It's available through Galpin Ford in Southern California and will be limited to 45 copies.

VW reveals plug-in diesel hybrid concept, claims 261 mpg

Volkswagen has used a car show in the Middle East nation of Qatar to unveil a two-seat plug-in hybrid concept car that the automaker says will deliver 261 mpg. The VW XL1 uses a lithium-ion battery pack, an electric motor and a two-cylinder, 0.8-liter diesel engine for the powertrain. We're still digesting the press release, but here are some highlights: -- VW says the XL1 can travel about 22 miles on electricity from the battery pack.

Lexus LF-LC Coupe heading for production

It looks like the impressive Lexus LF-LC Concept is heading for production as Lexus tries to inject some sportiness in to their brand. The stunning Lexus LF-LC Concept we saw at the Detroit Motor Show in January was certainly the most impressive Lexus concept for some time, although Lexus made it clear it was just a showcase of what their US designers were capable of envisaging. But we thought at the time that the LF-LC had potential as a proper halo coupe for Lexus (ignoring the stand-alone, madly priced LFA) that could be brought to market as an LS Coupe – the Lexus LC, perhaps?