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Low-priced minicars are regaining market share in Japan as the end of government subsidies for eco-friendly vehicles approaches.

Daimler lowered its 2012 profit target for Mercedes, saying earnings had been hit by a deteriorating auto market in Europe and China.

Car safety equipment maker Autoliv said its sales and profit results in Europe have so far been worse than anticipated in the third quarter, while the U.S. market has been better than expected.

A major French union is emphasising this morning's (19 September) announcement by Russian Railways (RZD) it is to enter into sole talks to acquire 75% of PSA Peugeot Citroen logistics division Gefco, is further example of the automaker selling the "family silver."

General Motors underscored its support for troubled European brand Opel when the new management board of Adam Opel hosted several hundred business partners from trade and finance at its Ruesselsheim headquarters.

Volkswagen has started production of the Porsche Boxster sports car at the former factory of the coachbuilder Karmann. VW is integrating Karmann's plant in Osnabrueck, northern Germany, into its production operations.

UK car production fell 8.9% in August, but remains up 12.7% over the year-to-date, according to data released by SMMT.

Mahindra & Mahindra plans to export its first mini-SUV, the Quanto, to Europe and South Africa.

Audi has asked a Chinese dealer to remove a banner advocating the murder of Japanese people after a photograph of the sign went viral on the Internet amid escalating tensions between the two countries.

China's Shanghai Automotive Industry Corporation (SAIC) has appointed former Nissan designer Martin Uhlarik as head of its European design center. SAIC is investing $2.42 million to double the size of the studio in Longbridge, central England.

Pictures 26 Sep, 2012

News 26 Sep, 2012

Audi has unveiled the practical new A3 Sportback on the eve of the Paris Motor Show

PSA is in exclusive talks to sell 75 percent of its Gefco trucking unit to OAO Russian Railways for about 800 million euros ($1.04 billion), the carmaker said on Thursday.

Mercedes-Benz has revealed a new plug-in electric version of the second-generation B class ahead of its public unveiling alongside other battery-powered models at the Paris motor show later this month.

Germany's premium brands are defying Europe's economic crisis and increasing their vehicle sales in the region to such an extent that they are catching -- or passing -- sales of struggling volume brands.

In an effort to become greener and cleaner, the City of Montreal plans to replace 300 of its 700 vehicles with smaller, more fuel-efficient cars while increasing the use of biodiesel throughout its fleet. A simulator will also be used to help operators develop fuel-saving driving habits.

''By 2015, our administration will have taken several actions to further position Montreal as a leader in sustainable development,'' said Alain DeSousa, Vice-chairman in charge of sustainable development, the environment, parks and green spaces.

Similar to Vancouver, Montreal also plans to acquire 12 electric vehicles and assess their performance and dependability. Next year, a total of 161 hybrid buses and seven ''midibus'' vehicles will hit the streets as well.

The administration predicts that its entire fleet will be electrified by 2025.

Source: Ville de Montréal

While several people expected Qatar to acquire the Citroën World Rally Team for next season, it seems now that a new partnership would link the French make to Abu Dhabi.

As we explained in previous articles, several signs seemed to confirm that Qatar would be leaving the World Rally Championship at the end of the season, and the Rallye de France Alsace would be the last WRC event for Nasser Al-Attiyah.

Now it seems that Abu Dhabi would back the two works Citroën DS3s for the full WRC campaign next season.

The first car would be driven by Khalid Al Qassimi, who has contested several WRC events in the past seasons ina Ford Focus WRC ran by the BP Ford Abu Dhabi World Rally Team. T

he second car would be driven by Thierry Neuville, who'd be promoted as a works driver of the Citroën Rally Team. Neuville is currently driving for the Citroen Junior team.

Jari-Matti Latvala aboard the Abu Dhabi Focus Ford in 2010. (Photo: WRC)

Sebastien Loeb would stop full time rallying but could contest selected WRC events in roder to help Citroen.

Loeb's currenbt teammate Mikko Hirvonen's future is quite unsure. He may move back to Ford, replacing Jari-Matti Latvala if the Finn joins Volkswagen, or Petter Solberg if the Norwegian joins Hyundai, which is developing an i20 WRC for 2013.

Hirvonen could also join Hyundai himself next year, as the vast experience of the current Citroën driver would be very helpful to the Korean car manufacturer.

The deal linking Citroën and Abu Dhabi -- which would run for the next five years -- could be announced at the Rallye de France Alsace, next round of the WRC.

Price is always the No. 1 consideration when it comes to buying anything. If money wasn't an issue, we'd all be driving Audis, wearing Armani and eating Kobe beef and caviar. Such is not the case.

As the winter season rapidly approaches, the questions are starting to roll in: “What winter tire should I buy?”

In order to partially counter the onslaught of queries, I've devised the following: A “best bang for the buck” line-up of winter tire suggestions.

It's very simple actually: If you want to spend as little as possible, a moderate amount or if price is no object, I've come up with the best picks for each price range. Actually, I consulted with my friends at Talon Tire, who are very well versed on the subject of winter tires.

As compact cars are very popular in Canada, I've selected the following P205/55R16 size as the yardstick. Keep in mind that these winter tire picks can be applied to most cars, minivans and crossover vehicles.

Here are the top 2012 winter tire picks (note: price is per tire):

Best cheap tire: $100-$150

Champiro IcePro or Goodyear Ultra Grip Winter

Both of these winter tires provide good to exceptional snow and slush traction. Both tires are studdable for added ice traction.

Champiro IcePro and Goodyear Ultra Grip Winter (Photo: Champiro and Goodyear)

Best moderately priced tire: $150-$200

Toyo Observe Garit KX or Continental Extreme Wintercontact

These winter tires offer heightened performance and overall snow and ice traction. They feature state-of-the-art compound technology.

Toyo Observe Garit KX and Continental Extreme Wintercontact (Photo: Toyo and Goodwrench)

Best tire: $200 +

Bridgestone Blizzak WS70 or Nokian Hakkapeliitta R

This pair of winter tires is at the top of the winter-tire game. Their tread patterns are optimized for maximum snow, slush and water channeling, providing the best possible grip in all conditions.

Bridgestone Blizzak WS70 and Nokian Hakkapeliitta R (Photo: Bridgestone and Nokian)

I drive a lot of cars and trucks each year and, truthfully, very few of them deliver the promised fuel economy despite my eco-driving efforts. It's true, NRCan's fuel consumption test procedures are outdated and should become stricter in a few years.

However, the Germans seem to be closest to those optimistic Canadian fuel economy ratings. And the new-for-2012 BMW 3 Series Sedan is a perfect example: Powerful and fuel efficient, the 328i should be the inspiration for many manufacturers who market their vehicles as being “eco-friendly.”

The previous-generation 3 Series had few shortcomings, and the new model addresses pretty much all of them. This may well be the best compact luxury sedan on the market -- still.


Muscle and green-ness join hands
The 2012 BMW 328i Sedan gets a new (at least for the US and Canada) turbocharged 2.0L 4-cylinder engine that develops 241 hp as well as 258 lb-ft of torque that peaks from 1,250 rpm all the way to 4,800. In short, plenty of muscle pretty much all the time.

Equipped with the new 8-speed automatic, the 328i blasts to 100 km/h in just over 6 seconds. Only a few years ago, you needed to get the top-shelf 335i for that level of performance.

And with so much torque, you don't need to rev the hell out of the 4-banger for highway merging and passing. As a result, lower engine revolution means lower fuel consumption, and together with a standard start/stop system and an ECO PRO driving mode, we managed an excellent average of 6.8L/100km during the test week with the 2012 BMW 328i. Those are subcompact-hatchback consumption numbers, boys and girls.

I do have two concerns, though: First, when the start/stop system fires the engine back up, the whole car shakes making the process feel somewhat rough and unrefined. And second, I question the number of BMW fans who aren't pleased with the fact that the silky-smooth 6-cylinder was replaced with a turbo four in base trims of the 2012 BMW 328i, even if the new motor is more powerful and 22% more fuel efficient.

Handling wise, the 2012 3 Series Sedan has matured a bit, and you feel that the suspension has been slightly softened. On the other hand, the 328i remains a great back-road brawler, with sharp steering turn-in, superb reflexes, and a suspension setup that rewards the driver every time he or she is in the mood for spirited driving.

La BMW 328i 2012 est équipée d'un 4-cylindres turbo développant 241 chevaux et un couple de 258 lb-pi. (Photo: Michel Deslauriers)

Not sure about the colour
Our test 2012 BMW 328i arrived in our parking lot flaunting its $800 Havanna Metallic paint colour -- or if you prefer, light brown. Inside, we were treated to a beige coloured cockpit; nice and elegant, but not exactly to my personal taste.

Buyers of the new 328i and 335i must opt for one of three trim levels: Luxury, Modern and Sport. Our car was decked out in the Modern trim line, and was perhaps the most plain among the three. And that “Modern” badge on the front fender looks cheesy; I'd take it off.

We feel the Sport trim is more fitting for a BMW, but that's just us. At least now you have more choice. One thing's for sure: Fit and finish in the 2012 BMW 328i are a step up from the previous-gen 3 Series.

Oh, there's more rear-seat legroom as well which was one of the old car's shortcomings. There's also a bigger trunk, now rated at 480 litres.

À l'intérieur, on a eu droit à un habitacle de couleur beige : joli et élégant, ce n'est toutefois pas dans ma palette. (Photo: Michel Deslauriers)

Priced to go
The 2012 BMW 328i starts at $43,600 and comes well equipped with a power sunroof, an intelligent key, heated and power-adjustable front seats with driver-side memory, xenon headlights, leather upholstery, dual-zone climate control, iDrive, and a nine-speaker stereo with Bluetooth connectivity and a USB port.

Our test car included a bunch of option packages that added navigation, a rear view camera, a Harman/Kardon stereo, BMW Apps and Park Distance Control, totalling $51,100.

A base 320i starts at $35,900, while the well equipped and more powerful 328i costs $43,600. (Photo: Michel Deslauriers)

Competitors are numerous: Audi A4, Cadillac ATS, Lexus IS, Mercedes-Benz C-Class, Infiniti G37, and Volvo S60 to name a few.

Better than ever, the new 2012 3 Series remains one of our favourite luxury sport sedans, and raises the bar with more powerful engines that are also more fuel-efficient. Performance and low fuel consumption: that's what we call the best of both worlds.

From GMM

McLaren is confident it can get through this weekend in Singapore without a reliability problem.

While Lewis Hamilton won at Monza recently, Jenson Button would probably have finished second if not for a fuel system problem.

With the former world champion's title hopes seriously dented, the British team returned from Italy unsure what caused the failure.

"It was a problem that we haven't had before and it wasn't an easy one for us to identify," technical director Paddy Lowe said in the regular Vodafone teleconference on Wednesday.

"We have fortunately managed to identify the root cause and it was a problem with the fuel pump. It's something we have now completely covered for the remaining races."

Photo: McLaren