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Smaller Mercedes SLS confirmed, and with front-mounted V8 too

Baby Mercedes SLS AMG - or at least how it could have looked if mid-engined We’ve believed for some time that Mercedes were planning a smaller version of the SLS, but so far there’s been no official word. But that’s now changed, with AMG’s Christoph Jung telling AutoExpress that Mercedes and AMG are currently working on a smaller SLS, to go head-to-head with cars like the Porsche 911 and Audi R8. Interestingly, we’d thought that Mercedes would go the route of a mid-engined two-seater for the baby SLS, and that it would probably get a turbo V6. But it would appear not.

Nissan 370Z convertible likely to break cover at New York auto show

The drop-top version of the Nissan 370Z likely will bow at the New York auto show. The convertible follows the coupe version, launched at the end of December. The open-air 370Z would arrive for the 2010 model year.

Ford completes sale of Volvo to China's Geely

Ford said today it has completed the sale of Volvo Cars to Zhejiang Geely Holding Group for $1.8 billion. Divesting Volvo completes Ford CEO Alan Mulally's strategy of exiting European luxury brands to focus on the core Ford brand, following the U.S. carmaker's 2007 sale of Aston Martin, and of Jaguar and Land Rover to India's Tata Motors Ltd.