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Mercedes-Benz has big plans for small cars

Breaking outside its American position of rear-wheel-drive luxury vehicles, Mercedes-Benz will launch its new front-wheel-drive architecture in the United States in the next three years in the form of a coupe, SUV and possibly a small wagon or compact hatchback. Joachim Schmidt, Mercedes' global sales and marketing boss, said Mercedes is developing at least four models based on its MFA, or Mercedes Front-wheel-drive Architecture. "We will introduce the next generation of our MFA family to the U.S.," Schmidt said in an interview.

No performance upgrades for Subaru BRZ STI?

Earlier this week we brought you first news and pictures of the Subaru BRZ STI – and discussed the potential for a set of high performance upgrades taking the car’s output to around 300hp. However, according to people who claim to be in the know, this first round of  STI add-ons for the Subaru BRZ could be little more than cosmetic and chassis changes. On Bing: see pictures of the Subaru BRZ Find out how much a used Subaru BRZ is worth on Auto Trader Subaru originally rebuffed suggestions that it would fit a turbocharger or supercharger to the car’s 2.0-litre flat-four engine, which would easily take power from the standard 200hp output up to around 300hp.

GM to shut down Saab

General Motors will shut down Saab after the automaker wasn't able to conclude a deal to sell the brand to Spyker Cars, GM said on Friday. “Despite the best efforts of all involved, it has become very clear that the due diligence required to complete this complex transaction could not be executed in a reasonable time," GM Europe president Nick Reilly said in a statement. "In order to maintain operations, Saab needed a quick resolution.