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Mercedes-Benz has big plans for small cars

Breaking outside its American position of rear-wheel-drive luxury vehicles, Mercedes-Benz will launch its new front-wheel-drive architecture in the United States in the next three years in the form of a coupe, SUV and possibly a small wagon or compact hatchback. Joachim Schmidt, Mercedes' global sales and marketing boss, said Mercedes is developing at least four models based on its MFA, or Mercedes Front-wheel-drive Architecture. "We will introduce the next generation of our MFA family to the U.S.," Schmidt said in an interview.

Remember this day in GM history: The next century of automotive success starts now

President Obama's administration made history today with what some see as nothing short of government meddling in the affairs of big business. What I see is something else: I see the administration showing that it is serious and raising the level of concern from yellow to orange. Now there is a firm deadline and a message to bondholders, United Auto Worker union members and the American public: Do not be surprised if in the next 30 days--or even sooner-General Motors files for a controlled bankruptcy.

Toyota Yaris Hybrid-R concept (2013) at Frankfurt motor show

Toyota has released fresh information regarding its 414bhp supermini concept ahead of its debut at next month’s Frankfurt motor show. The Yaris Hybrid R drivetrain features Toyota Motorsport’s 1.6-litre racing petrol engine to power the front wheels and twin electric motors generating 60bhp apiece to run those at the back, giving the car all-wheel drive and a combined output of up to 414bhp. The car also makes use of a supercapacitor inspired by Toyota’s TS030 Hybrid Le Mans racer – energy generated under heavy braking is stored and can be quickly deployed to the rear wheels for an extra burst of power.