Volvo V40 (2012) first official pictures

This is the all-new Volvo V40, the Swedish car company’s latest rival to the Ford Focus, VW Golf et al. It will be officially unveiled at the 2012 Geneva motor show next month. Volvo is being particularly bullish about the prospects of its new V40, with Volvo president and CEO Stefan Jacoby claiming the new model ‘will give our toughest competitors a headache’.

Volkswagen working on new VR6 engine

Volkswagen is pushing ahead with development of a new narrow-angle V6 direct-injection gas engine, sources from the German carmaker's engineering headquarters based in Braunschweig reveal. Engineering for the new engine is being overseen by Volkswagen's new head of engine development, Fritz Eichler -- who in a previous position led the development of the current generation of Mercedes-Benz AMG powerplants -- continues with a swept volume of 3.0-liters and an unfashionable 15-degree cylinder bank angle. It has been conceived for transverse mounting.

Bid to cut car insurance premiums

THE COMPETITION WATCHDOG is proposing to impose a cap on replacement vehicle costs following motor accidents as part of a clampdown to help cut premiums for all drivers in the £11 billion private motor insurance market. The Competition and Markets Authority (CMA) said the cap on charges passed to the insurer of the driver who is at-fault in an accident for the cost of providing a replacement vehicle to the non-fault driver, would "more closely reflect the costs incurred and remove significant inefficiencies". The watchdog has previously found that the "complex chain" of claim costs following an accident collectively inflates premiums by as much as £200 million a year.