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Jaguar confirms small saloon – and gets the thumbs up from Number 10

Jaguar will launch a small saloon beneath the XF in 2015, the company confirmed on the eve of the Frankfurt motor show. The baby Jag (seen testing as a disguised evaluation mule in our spy shots gallery) will be constructed from aluminium and built in the West  Midlands, creating around 1700 jobs. The news prompted a call to Jaguar from the office of Prime Minister David Cameron, offering Number 10's congratulations and support with the company's product expansion.

NYC approves Ford Transit Connect for taxi fleet

New York signed off on the Ford Transit Connect to be used for taxi service, paving the way for the nation's largest city to begin switching to the small van in place of the aging Crown Victoria. The move was announced Thursday after a public hearing; New York joins Boston, Philadelphia and Chicago on the list of major cities that have approved the vehicle for taxi service. The Transit Connect (and Taurus sedan) is approved for use now, but a Nissan van will become the exclusive vehicle in 2013.

New NHTSA guidelines recommend vehicle systems disable text entry, videos while driving

Federal regulators, moving to curb distracted driving, issued final voluntary safety guidelines today that would disable certain in-vehicle functions such as manual texting, Web browsing and video phoning while driving. Automakers should do more to keep drivers' eyes on the road and hands on the wheel, U.S. auto regulators said as they released the latest guidelines meant to cut down on crashes caused by the use of electronic devices in cars.