Smart ForTwo heads for China & Brazil (CN/BR)

Daimler AG will import two of its smaller vehicles into China in early-2009: the Smart ForTwo and the Mercedes-Benz GLK.

The Smart ForTwo will go on sale in China next April, priced from $23,500 to $29,400. The GLK also is scheduled to arrive next spring, according to Klaus Maier, CEO of Mercedes-Benz (China).

The moves are a response to trends in China's premium segment, where rising fuel prices and the consumption tax are pushing customers toward smaller vehicles, said Maier. China's luxury-car market has grown 30% annually over the past three years.

But a 50% slump in the stock market, as well as the implementation of a higher consumption tax on large-engine vehicles for environmental reasons, threatens to reduce market demand.

Brazil will also get the Smart ForTwo following its successful launch earlier this year in the States. DaimlerChrysler have announced the introduction of the Smart ForTwo into the Brazilian market from next April. Making its public debut at the São Paulo Auto Show, the ForTtwo brings its unique spatial concept, high build quality and low fuel consumption to increasingly 'lifestyle-oriented' Brazilian consumers.

"We are certain that the agile two-seater possesses the ideal prerequisites to inspire customers in Brazil’s urban centres, starting with São Paulo," maintains Anders-Sundt Jensen, Head of Brand Management at smart.

There are some 6 million vehicles on the streets of today's São Paulo Brazil and with near to 30,000 new cars registered each month, the Brazilian market and more specifically the developing market in congested urban centres such as São Paulo is one DaimlerChrysler believes its ForTwo can tap into successfully - helped not least by an increasing environmental awareness amongst consumers.

The Smart ForTwo fulfills these concerns - boasting low fuel consumption and 'exemplary' CO2 emissions - and provides renowned Mercedes-Benz build quality and safety standards, a quirky design and cult status reaching through out its 37 international markets.

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Smart ForTwo maybe built in USA (U.S)

Comparison: Smart ForTwo vs Toyota iQ

Smart raises sales target (U.S)

Chrysler axes Aspen and Dodge Durango hybrids (U.S)

Less than a year after unveiling the Chrysler Aspen and Dodge Durango large hybrid SUVs and only two months into their full-scale production, Chrysler confirmed that it will discontinue the models with the just-announced closing of the Delaware plant where they are made. But the company said it is moving ahead with plans to introduce a hybrid version of the full-size Dodge Ram pickup in calendar-year 2010. "The demand for our full-size SUVs has really dropped off this year," Chrysler spokesman Scott Brown said. "Even though we got significant orders for the hybrids, it doesn't make sense to keep the plant open for just the hybrids."

The SUVs are Chrysler's first production hybrid vehicles. The Durango and Aspen models, which employ the same two-mode hybrid system found in General Motors' full-size SUVs, are sticker priced at $45,340 and $45,570, respectively.

Chrysler wouldn't say how many of the hybrid SUVs it had planned to build at the plant in Newark, which is scheduled to close at the end of December. Both models made their international debuts at the 2007 Los Angeles motorshow last November.

The announcement coincided with a report from Daimler AG, which owns a 19.9% share of privately held Chrysler, that the U.S automaker suffered a $772.5-million second-quarter loss due to slowing U.S sales and a market shift to small cars.

EPA rating for both vehicles rate at 20mpg in city driving and 22mpg on the motorway. Chrysler's 4x4 hybrid SUVs get better EPA highway numbers than the rival Chevrolet Tahoe 4x4 Hybrid, which is rated at 20/20 city/motorway and is priced at $54,210. The 4x2 Tahoe Hybrid ratings are 21/22; the base sticker is $51,405.

The Durango and Aspen hybrids share a dual-mode hybrid system jointly developed with GM, BMW and Daimler. The SUVs are equipped with Chrysler's 5.7 litre Hemi V8 with cylinder deactivation. Combined output is 400bhp, with 380lb-ft of torque.

This has also led Chrysler to cut a quarter of its staff by the end of the year. Although exact figures haven't been issued yet, it looks like as many as 5,000 jobs could be axed. Analysts in Detroit are seeing the announcement as a sign that the possible GM-Chrysler merger being discussed could come to fruition. Renault has also expressed an interest in parts of the Chrysler business.

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July sales figures decline for Dodge Durango (U.S)

September sales of SUV's & pick-up's rise (U.S)

Forget about the credit crunch or recession, sales of SUV's and pick-up trucks have risen in September. Pickup and SUV sales plummeted when petrol prices hovered around $4 per gallon, and many thought these gas-guzzling segments would never fully recover.

Truck sales fell below 10% of overall vehicle sales back in May and June, but the price of petrol falling from an average of $4.11 per gallon to $2.78 has helped the share of trucks rise to 14.1% of the overall market for September. Depending on how buyers react to the financial crisis, October could be even better as petrol prices have continued to go down. SUVs have seen a smaller but still significant jump in overall share, going from 1.9% in May to 2.5% in September – a big improvement for a shrinking segment.

As one of our readers said, some Americans have ditched their fuel efficient cars in favour for a V6 or V8 vehicle.

Crunch time for journalist's BMW 1 Series (AU)

It's never a pretty sight to see a new car being smashed and even though the media would most likely have had a blast if a journalist was to blame for the mishap, fortunately for Samantha Stevens of Australia's Wheels magazine, she had no way of avoiding this accident that led to the complete destruction of her BMW 135i Coupe. Long story short, Samantha parked the Bavarian coupe that costs around AUD $80,000 on a side street in Sydney under a warehouse block adjacent to her home. The same afternoon, strong winds with speed of up to 70-knots brought the warehouse's roof tumbling down showering the BMW as well as four more cars that were parked nearby with tons of iron and bricks.

On the bright side, the BMW not only proved that its rigid body structure can withstand the impact of several tons of falling rubble on its rooftop without completely collapsing but also that it can be driven away just about.

Acura has BMW in its sights

Spy photographers caught this Acura prototype undergoing testing in Germany near the Nürburgring circuit. Its not the first time Honda's luxury brand has been spied in Europe.

With sporty crossovers/SUVs like the X6 from BMW filling the order book up for 2008 and difficult economic conditions on the global car markets, apparently more car makers are developing their version as well. And in this case it's Acura.

Although impossible to see the vehicle shape under the heavy camouflage, we can easily see that the covering extending from the middle of the roof over the rear end is propped up like a tent hiding the true contours of a sloping coupe like roof line similar to the X6. Furthermore, looking through the tail light and license plate cutouts in the cover, you can see the angled position of the tail lamps and rear body sitting away from the cover while following a sloping trajectory up towards the roof. Also, the downward sloping roof line is seen in the top of the rear door window frame.

Seeing an Acura model, distinguished by its prominent front grille, being testing in Germany begs the question - could Honda bring Acura to Europe just as Nissan has done with its luxury brand Infiniti this year? However, Honda could be readying the crossover for sales in Eastern Europe, especially Russia. Markets like Russia and the Middle East still have a healthy appetite for full-size crossovers – and this new model appears to be closer in size to the (X6-sized) Acura MDX rather than the (CR-V sized) RDX. There are still no plans to introduce the Acrua brand to the UK. Unlike Toyota and Nissan, Honda feels its volume brand is strong enough not to need a luxury stablemate.

Engines are unknown at this point, but the well known 3.7 litre V6 would be an obvious choice followed by a (long overdue and possibly too late) new V8 engine which Acura officials have confirmed will be introduced.

Hyundai "PO" crossover spied

Our previous mystery car turned out to be Hyundai's all-new crossover, dubbed Portico. Following an article about Hyundai's forthcoming MPV's, the Portico crossover is likely to rival the Mercedes R-Class and Dodge Journey.

Flexible seating for the Portico means two rows of seating for 4 or 6 depending if the centre seat is folded down or upright. With six passengers in two rows - the Portico will offer more cargo area than similarly sized vehicles.

Hyundai's Lambda 3.3 litre V6, used in the Grandeur/Azera and Sonata is expected to produce around 240bhp. In 3.8 litre V6 form, 290bhp should provide ample motivation for the top of the Portico trim range. Hyundai's new 6-speed shiftronic transmission will route the power to a FWD or AWD setup. A hybrid and 4-cylinder powerplants are unknown despite earlier reports. While the Portico was slated to be built in Alabama, production has now shifted to Korea and will start in the 3rd quarter of 2009.

The new Portico will slot below the Veracruz but above the Santa Fe in terms of pricing. Like the Entourage and Genesis sedan and coupe, this is isn't likely to go on sale in Europe. However, if it does arrive, expect Hyundai's newly developed, single turbocharged "R" 2.2 litre CRDi engine to be used in 2010.

Alfa Romeo delays launch (U.S)

According to reports from the U.S, Alfa Romeo’s long-awaited return to the American market has been put on hold until 2011 at the earliest.

The global economic slump is being blamed. FIAT has previously said that it will have to build Alfas in America if the brand is to be viable there, and that will require substantial initial investment. Money that, for now, FIAT bosses aren’t prepared to spend.

Parent company, FIAT had planned for Alfa Romeo to re-enter the US market in 2009. It engineered the 159, Brera and Spider to meet stringent American crash and emissions regulations.

Instead, the only current-generation Alfa to reach the States has been the 8C supercar, which has been sold in very small numbers through a handful of Maserati dealerships.

National flags on number-plates now illegal (UK)

Thousands of motorists are breaking the law by displaying flags on their vehicle number plates. Transport Minister Jim Fitzpatrick has confirmed that displaying any flag other than the European Union symbol of 12 yellow stars on a blue background is illegal. The Union flag, the Cross of St George, the Scottish Saltire, and the Welsh Dragon are all included in the ban.

Drivers who break this rule face a £60 fine and they could also fail an MoT test due to their illegal numberplate. Regulations concerning the display of flags came into force seven years ago, according to Mr Fitzpatrick, who was responding to a Parliamentary question.

Hot Mazda3 MPS caught in Germany

Spied testing this week on the Nürburgring circuit, the new five door hatch's profile looks generally unchanged, but the side detailing is completely new. A new dual-exhaust system highlights the sculpted rear bumper design. The rear wing is similar to the current model's, but appears to be slightly larger on this prototype.

Those enthusiasts hoping for a front-mounted intercooler will be disappointed, as the hood scoop indicates that the top-mounted intercooler layout of the current 3 MPS/Mazdaspeed 3 has been carried over to the new car.

Out goes the old 2.3 litre, 256bhp, 4 cylinder engine in favour for a 2.5 litre 5 cylinder turbo from the Ford Focus ST. In the Mazda, which is due in 2009, this will offer around 250bhp+ and much better fuel economy. And the discreet look of the current 3 MPS is set to be axed in favour of a more menacing design.

Prices should start from £20,000 with a electronically limited top speed of 155mph when UK sales start Summer '09. The regular Mazda3 sedan should be at the Los Angeles motorshow in November, while the five door hatchback will be launched at the Bologna Show in Italy in December.

i-popping news: Hyundai set to expand MPV range

Hyundai’s European president believes his firm’s future lies in MPVs and more derivatives of its existing models.

Kun-Hee Ahn, chief of the Korean firm’s European operation said: "The world is currently a very unfriendly place for SUVs. For us the future has two directions. We will do more MPVs: our smaller B and C segment i20 and i30 will each have a people carrier version built on their platform." The i30 MPV is reportedly very close to the i-Mode concept from earlier this year, is expected to be unveiled in 2010. A vehicle based on the newly launched i20 supermini will follow it.

Ahn added: "We don’t think the future is in opening new niches. We’ll let other companies do that. We will offer people more choice with our existing cars. So each model will have a larger number of engine sizes and trim levels."

Despite the global downturn Hyundai and sister company Kia still have ambitious sales targets. Ahn claimed: "Currently our worldwide sales are just below four million annually and we want to sell six million cars a year by 2010 – and make money on those we sell. We think it’s possible because we’ll achieve growth through emerging markets such as India."

"In America (where the i50 is called Genesis) we are stealing customers from Mercedes, BMW and Lexus. But people aren’t as brand sensitive there. Here, if we price a car at more than €30,000/£23,600 at todays rate, customers can’t handle it so we still have some thinking to do."