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Vauxhall to launch sub-£7k city car

Vauxhall is believed to be working on a budget city car to rival the Toyota Aygo, Peugeot 108 and Citroen C1 trio unveiled earlier this month at Geneva. According to Auto Express, the new small hatchback will be based on the Chevrolet Spark platform and will start at less than £7,000 – undercutting the firm’s current Adam model by over £4,000. On Bing: see pictures of Vauxhall city cars Find out how much a used Vauxhall costs on Auto Trader If you’re expecting a bland box on wheels like the Agila, don’t fear – as Vauxhall has reportedly said the new car will “have its own distinct personality”.

UPDATED: Honda hints at new European advanced design studio

On the eve of the 2011 Tokyo Motor Show, Honda Design's Creative Director, Toshinobu Minami, announced that the company is looking to once again open a design facility in Europe. The announcement came during a presentation at the R&D Center in Waco, just outside the Japanese capital and, while not confirmed, Minami-san strongly hinted that the UK would be a likely candidate to play host to Honda's revitalized European design operations. He cited the country's existing manufacturing and administration facilities, as well as a wealth of new talent from the Royal College of Art in particular.

Detroit auto show: Ford pumps up the 2011 Mustang GT with 412 hp

To Ford Mustang fans, 5.0 has a special place in their hearts and Ford has delivered a new car for them to love: the 2011 Mustang GT. The 5.0-liter V8 Mustang GT will deliver 412 hp and 390 lb-ft of torque. The engine produces 83 hp per liter yet will return 25 mpg on the highway and 17 mpg in the city, according to Ford marketing boss Jim Farley.