Volkswagen Polo Bluemotion on sale (UK)

Volkswagen's cleanest and most fuel-efficient Polo has just gone on sale.

Its 74bhp, 1.2 litre diesel engine produces CO2 emissions of just 91g/km, which means the car is free to tax and puts it in the lowest company car tax band of 13%. It also returns 80.7mpg on the combined cycle. The car can accelerate from 0-62mph in 13.9 seconds and has a top speed of 107mph. As well as the new engine, the Polo Bluemotion gets longer gearing, regenerative braking, aerodynamic tweaks and an engine stop-start system.

The Polo Bluemotion is the cleanest 5 seat, 5 door fossil fuelled car in the UK.

Air conditioning, alloy wheels, cruise control, ESP and x4 airbags come as standard. The new Polo Bluemotion starts from £14,445 for the 3 door and £15,045 for the 5 door model.

Hyundai chairman ordered to repay £38m

The chairman of Hyundai has been ordered to repay the company £38m to compensate it for losses resulting from his business decisions.

The ruling follows as Chairman Chung Mong-koo 2008 conviction for embezzlement and breach of trust, for which he was given a 3 year suspended jail sentence before being pardoned by South Korean President Lee Myung-bak.

"This is a case that reveals the problem of family-run management that focuses on the interests of major stockholders and the executives of Hyundai Motor," the judges' ruling said. One of the groups that filed the civil law suit, Solidarity for Economic Reform, called the penalties too low and said it would appeal to a higher court. It wanted a fine of more than £300m to be imposed.

Ferrari sales still remain strong

Ferrari says it weathered last year’s global economic storms with sales of 6,250 cars, only 5% down on 2008.

The company says that while the luxury sports car market collapsed by 35% in 2009, Ferrari’s market share rose to 10%, making it the leading manufacturing in the segment. The Italian company says it is also set to invest 18.5% of its revenues in new products, a very high proportion for the car industry.

Ferrari bosses also make the point that the company can self-finance new products, unlike Aston Martin, which is thought to be preparing to float on the stock market to raise funds. Ferrari made an operating profit of €245m (£212m), down from last year’s record €341m (£296m), a return on sales of 13.8%. Profits were hit by the weakness of the U.S dollar.

Ferrari sold 1,467 cars in North America last year, down 200. European sales hit 2,752 units, down 6%. Italy (655 cars) and Germany (644 cars) are the biggest EU markets. Asia Pacific markets took 1117 cars. 60% of Ferrari California customers are claimed to be new to the brand. Ferrari’s branding and merchandising operations are also booming, with retail sales up 22.5% mostly thanks, it says, to the opening of the Ferrari retail store in Regent Street, London.

Ferrari chairman Luca di Montezemolo said, "Achieving these results in such a challenging economic climate is the best possible endorsement of the quality and the commitment of all the people of Ferrari and of our strategy focusing on innovation and exclusivity.

"Those guidelines will also allow us to tackle 2010. It will be a very difficult year and the first small signs of recovery will not come until next autumn."

Cadillac BLS replacement under development

According to a recent report, the Cadillac ATS will be available as a sedan, wagon, coupe, and convertible.

While details are limited, a source has stated "We're finalising the four-door showcar of the ATS first. Then we'll follow quickly after with a wagon, a coupe and a convertible." The concept will likely be shown at a motorshow later this year.

Perhaps the most interesting detail is the report of an ATS convertible. It seems that Cadillac hasn't decided whether to use a conventional canvas roof or a folding metal unit. As the source said, Cadillac is "not too sure about the compromises of a folding hardtop."

Expected to be launched as a 2012 model, the ATS will replace the Saab-based BLS. It will rival the BMW 3 Series, Saab 9-3, Volvo S60, Mercedes C-Class and Audi A4/A5.

Next generation Fiat Panda due in 2011

Fiat will launch a redesigned Panda in 2011, after CEO Sergio Marchionne lifted a 15 month spending freeze. Marchionne’s spending freeze ran from October 2008 to December 2009 and saw the delay of the new Panda, Alfa Romeo Giulietta and a replacement for the Lancia Ypsilon.

In a telephone conference with financial analysts, Marchionne said launching any major new models last year in the middle of the global financial downturn would have been a “waste”.

“That's the reason why I think we intelligently postponed a number of our programs to make sure that it coincided with what I consider to be a structural recovery in demand in 2011 and later years,” he said. Fiat’s investment in 2009 was 32% lower than 2008’s. In 2008, it stood at €4.97bn (£4.34bn) and will be €4.5bn (£3.93bn) this year.

The Alfa Romeo Giulietta will be launched in Geneva next month – a year later than originally planned. The Panda will be launched in 2011 – two years later than originally planned.

Although information on the forthcoming Panda is scares, it will underpin the current model – which has been on sale since 2003 and styling will be influenced by the current 500 city-car, which itself is based on the Panda.

Under the bonnet, we can expect a 65bhp naturally aspirated , 80bhp – 105bhp turbocharged, 0.9 litre two-cylinder MultiAir petrol engine to be used. On the diesel side, a 1.3 litre MultiJet engine producing 95bhp is expected to be lifted from the current 500. In addition to the regular car, the 4x4 model is in the pipeline, alongside a sportier Panda.

Marchionne has also revealed plans to extend Lancia’s European range by four models in 2011. Rebadged versions of Chrysler’s Sebring saloon and cabriolet, 300C and Voyager will all be added to the Lancia range.

Cadillac plans European return (EU)

Cadillac is planning to announce a new distribution arrangement for the UK and Europe before the Geneva motorshow. Cadillac is viewing ‘multiple proposals’ for the distribution arrangements, which are thought to include various different independent distributors and the possibility of Vauxhall/Opel taking over the responsibility itself.

"We’ve got multiple proposals along all those lines and we’ll make a decision soon. I’d like to be at Geneva with a solution,” said Cadillac general manager Bryan Nesbitt.

Cadillac needs a new distributor because its previous arrangement came to an end last year when its Dutch partner, Kroymans hit financial trouble. As a result sales are mothballed while Cadillac sorts out its future plans, but the company desperately needs new and solid distribution arrangements in Europe because a new range of cars with a more subtle design language are on their way.

These will more obviously target the three major executive car segments – in BMW terms, 3, 5 and 7 Series.

The 5.1m long XTS saloon concept shown at Detroit is the first sighting of this evolved design language which takes the heavily-creased Art and Science theme developed in the late 1990s. Although the XTS is sized around the Mercedes S-Class, it won’t necessarily be the flagship of Cadillac new range. Most immediately it will replace both the DTS and STS, but in pricing and positioning it still leaves room above for a super-luxury Cadillac saloon in the mould of the V16-powered Sixeen concept of a few years back.

“A real luxury flagship is still on our wishlist,” says Clay Dean, Cadillac design chief.

Lexus LFA demand set to outstrip supply

Lexus expects demand for its new £343k LFA supercar to outstrip supply when order books open in Spring.

Just 500 units will be produced, with around one-fifth of these assigned to Europe. European sales are taking place at Lexus’ Park Lane showroom in London and the car’s dedicated salesman, Devshi Varshani believes the LFA has already cemented its place among the great supercars.

“The level of interest we have witnessed reinforces just what an exceptional car the LFA is,” he said. “Even though few people have even seen the car in the metal, let alone experienced its breathtaking performance, it has quickly achieved the status of a truly rare and highly sought-after machine.”

Prospective buyers can register their interest in the LFA up until the end of the Geneva motorshow. So far, more than 500 people have expressed an interest, ensuring Lexus will have to hand pick who it sells each individual model to. After this registration process, Lexus will decide how to allocate the 500 models to the 56 countries where it will be sold depending on how much interest there has been in each region.

In the U.S, the LFA will be leased to customers and not sold, in order to avoid second-hand prices over-inflating and to keep the cars exclusivity.