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Lexus targets the Mercedes-Benz S-class with a sporty LS 460

Lexus has introduced its first sport package on the LS 460 to take aim at the Mercedes-Benz S-class. The flagship LS, redesigned for the 2007 model year, is getting long in the tooth. And Lexus wants younger BMW and Mercedes owners.

BMW wants to sell 1,000 of its fire-breathing hybrids in the U.S.

It's literally a grand strategy: BMW is aiming to sell 1,000 of its new hybrids based on the 7-series and the X6 in their first year in the United States. The two hybrids will be revealed in production trim at the Frankfurt auto show this month. They use eco-technology to boost fuel economy and performance.

Diesel drivers 'pollution penalty'

DRIVERS OF DIESEL CARS could have to pay more in road tax or face additional levies to travel into city centres in an effort to tackle pollution, it is reported. Major cities around the UK are considering bringing in low emission zones to force out older diesel vehicles that are responsible for higher levels of fumes, The Times said. Almost all diesel vehicles driven into central London will trigger a £10 charge under plans being considered by mayor Boris Johnson, who will also reportedly lobby the Government to increase road tax on diesel cars to encourage motorists to move to cleaner vehicles.