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A look at Cadillac future products

General Motors has green-lighted the development of a large flagship sedan for Cadillac, sources say, part of its plan to position its luxury brand's lineup to take on the German luxury stalwarts in every key sedan segment. The flagship sedan is to be built on a new rear-wheel-drive platform and arrive by 2015. The long-rumored rwd flagship would challenge the BMW 7-series and Mercedes-Benz S-class and is a key to GM's ambitions to expand Cadillac in China.

VW & Porsche could become Auto Union

It looks like Porsche and VW may come together under the Auto Union banner. Of course, all these shenanigans have come about because of Porsche’s desire to gobble up VW. The plan looked great, and Porsche grabbed a big chunk of VW stock.

Ford offers C-Max Hybrid owners rebates for overstated mpg

In the wake of Ford's decision yesterday to lower its fuel mileage estimates on the C-Max hybrid, the company says it will also offer a payment to C-Max hybrid owners and lease holders for the estimated average fuel cost between the new and former mpg figures. Owners will get a check for $550 while lessees will get $325. The window sticker on the C-Max hybrid will now read 43 mpg, instead of the originally promised 47 mpg.