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Volvo launches plan to spread servicing costs

Volvo has launched a new website allowing owners of Volvos up to 48 months old the opportunity to purchase a Volvo Service Plan, via either a one-off payment or a fixed monthly fee. It works in a similar way to car insurance, where you have a choice of either paying monthly or upfront. The pre-paid service plans cover any service carried out on Volvos up to six years of age and up to a maximum of ten scheduled services.

Toyota sets 2010 Prius price at $22,750

The redesigned 2010 Prius hybrid goes on sale in late May at a base price of $22,750, including freight. Later this year, a stripped-down base model will go on sale for $21,750, including shipping. The third-generation Prius comes with a 1.8-liter four-cylinder engine producing 98 hp.

Ford to make three-cylinder EcoBoost engine, eight-speed transmission

UPDATED: Ford is taking a look at the powertrain of its future, and in a nutshell, it's going to be small--at least under the hood. That's because the Blue Oval is preparing a 1.0-liter, three-cylinder EcoBoost engine, claimed to be the smallest engine the company has ever built. Ford says this baby EcoBoost will offer output comparable to a normally aspirated 1.6-liter, four-cylinder powerplant.