Google targeted in e-mail scam

Google's web-based e-mail system, Gmail, has been targeted as part of an "industry-wide phishing scheme".

The firm said that it had immediately safeguarded the affected accounts.

BBC News has seen two lists that detail more than 30,000 names and passwords from e-mail providers, including Yahoo and AOL, which were posted online.

The lists also include details of thousands of Microsoft Hotmail users. Google said fewer than 500 of its accounts had been affected by the scam.

However, the search giant revealed that it had discovered a third list, but would not say how many accounts it showed.

Phishing involves using fake websites to lure people into revealing data such as bank account details or login names.

"We recently became aware of an industry-wide phishing scheme through which hackers gained user credentials for web-based mail accounts including Gmail accounts," said a Google spokesperson.

"As soon as we learned of the attack, we forced password resets on the affected accounts. We will continue to force password resets on additional accounts when we become aware of them."

The firm stressed that the scam was "not a breach of Gmail security" but rather "a scam to get users to give away their personal information to hackers".

'Industry problem'

The phishing scam was originally thought to target just Hotmail users.

It was brought to light when 10,000 Hotmail addresses were posted online at Pastebin, a website commonly used by developers to share code.

The list was reported by technology blog Neowin.

However, a second list of 20,000 names has since emerged containing e-mail addresses and passwords from Hotmail, Yahoo, AOL, Gmail and other service providers. A third list, which has not been seen by the BBC, was discovered by Google.

This should be a wake-up call to Google and Microsoft to educate their users Carole Theriault Security consultant Phishing attack targets Hotmail

Some of the accounts on the list of 20,000 names appear to be old, unused or fake. However, BBC News confirmed that many - including Gmail, Yahoo and Hotmail addresses - were genuine.

Other addresses on the list include Comcast and Earthlink accounts.

It is not clear whether the new lists was part of the same phishing attack that collected the Hotmail addresses or a separate scam.

A spokesperson for Microsoft said phishing was an "industry-wide problem".

"Our guidance to customers is to exercise extreme caution when opening unsolicited attachments and links from both known and unknown sources, and that they install and regularly update their anti-virus software."

Both lists can still be accessed online.

A spokesperson for Yahoo urged consumers to "take measures to secure their accounts whenever possible, including changing their passwords".

Carole Theriault of security firm Sophos agreed.

"Getting access to one password can give someone access to lots of things," she said.

People should change their password on any other site where they use it, she added.

A recent report by the firm said that around 40% of people had the same password for every website they used.

"People need to see a difference between an online bank account and booking cinema tickets online," she told BBC News.

But, she said, blame did not rest with the users of the e-mail services, who likely clicked on a link in a scam message.

"Phishing attacks are very subtle these days," she said. "People do all kinds of tricky things."

Fake websites, which ask for a users login details, can be made to look like those of reputable companies.

"This should be a wake-up call to Google and Microsoft to educate their users," said Ms Theriault.

VW to buy 42% stake in Porsche sports car unit

WOLFSBURG/STUTTGART, Germany (Reuters) -- Volkswagen AG agreed today to buy a 42 percent stake in the sports car unit of debt-ridden Porsche Automobil Holding SE in another step toward combining the two German carmakers into a European automotive giant.

VW will pay up to 3.3 billion euros ($4.7 billion) this year for the initial stake in the unit, Porsche AG, paving the way for the creation of an integrated automotive group by the end of 2011, VW and Porsche said in statements after board meetings. Volkswagen CEO Martin Winterkorn, who is poised to run the combined entity and was named head of Porsche SE on Thursday, said the deal marked "a new era" for both companies. "Porsche is a real enrichment for our company's portfolio," he said. The combined company will have 10 brands, adding the Porsche marquee to a stable that already includes Audi, Bentley, Bugatti, Skoda, Seat and Lamborghini. To finance the purchase, Volkswagen plans a capital increase of preference shares in the first half of 2010, VW said.

Piech's triumph Porsche's surrender comes at the end of a months-long power struggle that eventually led to the departure of Porsche CEO Wendelin Wiedeking. It marks a triumph for Volkswagen CEO Winterkorn and VW Chairman Ferdinand Piech. Porsche had sought to seize control over Volkswagen -- already Europe's biggest carmaker -- as a way to gain access to key components and technologies it needs to meet stringent new pollution rules. That left it with just over half of VW votes. But Porsche's takeover attempt backfired after it took on more than 10 billion euros in debt, forcing it to seek help from Volkswagen. VW supplies components for about a third of all Porsche cars, including bodies of the four-door Cayenne and Panamera models. VW's powerful labor chief welcomed the agreement. "Today industrial history was made," Bernd Osterloh said. In a further step to alleviate Porsche SE's debt, Porsche's controlling families will sell their automobile trading business Porsche Holding, Europe's largest dealer group, to Volkswagen. The business, with an enterprise value of 3.55 billion euros, will be sold by 2011. Porsche also aims to raise capital by issuing new ordinary and preferred shares, probably in the first half of 2011.

Qatar stake The Porsche and Piech families will remain the largest shareholders in the company to arise from the combination of VW and Porsche SE, Winterkorn said. VW's home state of Lower Saxony, which owns a stake of 20 percent in Volkswagen, will retain the right to block important decisions and to nominate two members of the supervisory board. The completion of the sweeping deal depends on the approval of Porsche creditor banks and a final clarification of structural issues, Porsche said. The deal is set to make the Gulf state of Qatar the third-largest investor in the combined company, VW's CEO said, without specifying how large a stake the state will hold.

Volkswagen CEO Winterkorn to be Porsche SE boss, sources say

Volkswagen AG CEO Martin Winterkorn is set to also become CEO of Porsche Automobil Holding SE, two people familiar with the matter said.

One source said that Winterkorn wants to "assume responsibility" at Porsche SE, which owns the Porsche sports car company and holds Porsche's 51 percent stake in VW.

The holding company was forced by debt troubles to abandon efforts to seize full control of Europe's biggest carmaker.

The supervisory boards of both German carmakers were poised to address the issue at separate meetings on Thursday, one of the sources said.

Volkswagen's supervisory board is also set to approve the purchase of a minority stake in family-owned Porsche SE's healthy sports car business, Porsche AG, as a first step in integrating the two German carmakers.

At Porsche SE, Winterkorn would succeed Wendelin Wiedeking, who was CEO of the holding company and Porsche AG but departed after losing a power struggle with VW.

Wiedeking's post as the head of Porsche AG was filled last month by Michael Macht.

Two VW supervisory board members told Reuters on Wednesday that Volkswagen and Porsche had broadly agreed on details for a deal to combine two of Europe's most storied automakers.

Volkswagen is set to buy a stake of up to 49 percent in Porsche AG in a first step toward creating an "integrated" automotive group by the end of 2011.

Analysts value Porsche's sports car business, which makes the famed 911 models, between 8 billion and 11 billion euros ($11.4 billion and $15.7 billion).

Porsche, VW May Be Dubbed 'Auto Union'

As Porsche and Volkswagen work out details of their eventual merger, Reuters reports the companies may resurrect the Auto Union name. The moniker was previously used in the 1930s for the company that evolved into Audi.

Porsche and Volkswagen continue to work on a deal.

Porsche and Volkswagenhave broadly agreed on sale terms, and the name Auto Union may be resurrected, Reutersreports.

The new entity could be led by Volkswagen CEO Martin Winterkorn, and Porsche would retain some independence — similar to Audi's setup within the Volkswagen Group. Porsche would be the 10th brand in the company.

VW would buy up to 49 percent of the Porsche sports-car business, the first step in an integration of the two companies that would be completed in 2011, according to Reuters.

Auto Union is a famous name that dates to the 1930s, and its cars were legendary racers. The company has since evolved into Audi.

The sale is a reversal after Porsche's attempts to take over its much larger rival, VW, failed.

Fiat approved to buy Bertone coachbuilding business

Fiat S.p.A.'s bid for Carrozzeria Bertone S.p.A. was approved by Italian Industry Minister Claudio Scajola Thursday.

Fiat will invest 150 million euros ($215.9 million) over three years in the struggling contract manufacturer that has produced models ranging from the Lamborghini Miura to the Volkswagen Polo during its 96 years in business.

The other bidders for the coachbuilder included Italian entrepreneurs Gianmario Rossignolo and Domenico Reviglio.

Fiat CEO Sergio Marchionne says that the automaker is interested in Bertone's Turin plant for niche vehicle production.

Fiat declined to say which niche model or models it would make at Bertone's Turin factory. The only detail the company gave was that the vehicles would be sold in Europe and North America.

Fiat has a controlling stake in Chrysler Group and plans to relaunch the Fiat brand in the United States in early 2011. The U.S. relaunch of Fiat-owned subsidiary Alfa Romeo is planned for the end of 2011.

The Italian press has speculated that starting in the second half of 2011 Fiat could use the Bertone plant make everything from convertibles to large sedans.

Rossignolo planned to use the plant to produce up to 10,000 units a year of a luxury sedan and SUV.

Finally got it

The Bertone family lost control of the coachbuilding business when bankruptcy administrators took control in February 2008. The Bertone design business, which remains in the hands of the Bertone family, was not affected by the collapse of the contract manufacturing unit.

This was Fiat's second attempt this decade to take control of Bertone's coachbuilding business. In 2006, Fiat started negotiations to buy a controlling stake in the company. It planned to make a coupe cabriolet for the Lancia brand at the plant.

For undisclosed reasons, the talks between Fiat and Bertone collapsed in spring 2007. Shortly after that, Fiat scrapped plans to make the coupe cabriolet, which was known as the Fulvia.

Bertone, founded in November 1912, is Italy's oldest contract manufacturer. The company stopped volume production in December 2005.

Bertone still employs about 1,140 people, down from the 1,450-person work force it had at the end of 2007.

Volvo S60

Volvo's latest 3-series rival photographed

The Volvo S60, only previously seen in concept form has been snapped (but only just) on a road in England.

The heavily disguised prototype doesn’t give away much about the car but it is expected to look like a slightly toned down version of the S60 Concept that debuted at the Detroit Motor Show.

Onboard technology will include Volvo’s Collision Warning With Full Auto Brake. Several cameras will sense if the car is about to have a collision and will then take evasive action. The S60 also comes with a pedestrian detection system that can sense and avoid pedestrians.

Expect power to come from a fuel-efficient 1.6-litre turbo mated to a dual-clutch transmission. More details will be confirmed as the S60 approaches its expected release date in 2010.

Co-owner is confident that Koenigsegg can rescue Saab

Koenigsegg Automotive believes it can rescue General Motors' loss-making Saab unit, a co-owner of the Swedish luxury sports car maker said.

"We think it is possible (to rescue Saab) and we have several good solutions to bring into Saab," Baard Eker, who holds 49 percent of Koenigsegg, told the Dagbladet newspaper.

General Motors is close to selling Saab to Koenigsegg, a source familiar with the talks told Reuters last week. Saab sought protection from creditors in February and has been granted an extension of its business reorganization until Aug. 20 to line up a new owner and restructure.

"Let me make one thing clear -- we are not buying Saab only to chop it up," Eker said, referring to what he calls "poisonous comments" in Swedish media.

Eker, a Norwegian entrepreneur, said obstacles may still emerge which could potentially stop the sale, but he did not reply negatively when asked about Saab's comments that a deal could be in place next week, according to the paper.

Eker confirmed that several investors are willing to finance the acquisition, but declined to name them or how much money they would contribute.

When asked what was the most important thing that he and Christian von Koenigsegg, the sports car company's founder, could bring in as new owners, Eker said: "Culture and technology. Saab needs to be more innovative."

Eker also said it was not their intention to let "many people go," but declined to be more specific.

Koenigsegg's hand-built super cars are in Forbes magazine's list of the world's 10 most beautiful cars. The company has less than 50 employees and turns out only a handful of $1 million cars a year.

GM, which filed for Chapter 11 protection June 1, put Saab up for sale after deciding to cut its 20-year ties with the brand.

Saab produced nearly 100,000 cars last year, about 1 percent of GM's global output. GM has held talks with a number of potential buyers, including Fiat and Chinese automakers.

GM taps Swedish sports car maker as top Saab bidder, reports say

General Motors has chosen Swedish luxury sports car maker Koenigsegg Automotive AB as the preferred bidder for the Saab brand, news reports said. Koenigsegg and Norwegian investors have signed a letter of intent to take over Saab, Swedish television said today, attributing its report to unnamed sources. "The deal is there now and a few minor details remain," a source told Reuters. The reports follow earlier statements from Saab spokesman saying an announcement on the top finalist could come as soon as this week. GM, which filed for Chapter 11 protection June 1, put Saab into the equivalent of bankruptcy in February after deciding to cut its 20-year ties with the brand. The shedding of Saab underscores GM's intensified global effort to jettison non-performing brands and business lines. Over the last two weeks, the automaker has announced preliminary agreements to sell Hummer to a Chinese suitor and to sell Saturn to Roger Penske's Penske Automotive Group Inc. On Monday, GM said it would terminate its medium-duty truck business after trying to sell it for four years. A deal to sell the unit to Navistar Inc. fell apart. GM spokesman Chris Preuss declined to comment on the Saab bidding. Koenigsegg was one of three Saab finalists named in recent published reports. Bloomberg News, citing one person familiar with the talks, said Koenigsegg was picked because it's an automaker and because it is committed to investing in Saab.

The Financial Times reported on Tuesday that Merbanco, a group of Wyoming investors, is interested in Saab, as is U.S. billionaire Ira Rennert's Renco Group. The FT said GM would provide $500 million in assets and cash, plus production equipment for a new Saab model as well as $150 million of cash already in Saab's account. Under the deal, the new owner is to pay GM back if it succeeds in turning around Saab, the report said. Cash amounts pledged by the three bidders vary, but it is smaller than the amount GM is contributing, the paper said.

Wiedeking's future is in the balance

Porsche's plan to merge with Volkswagen has intensifed a power struggle that could see the spectacular fall of the sports car maker's CEO Wendelin Wiedeking.

The German press says that Wiedeking faces his Götterdämmerung after his plan for Porsche to take control of Volkswagen, a company 15 times Porsche's size, was abandoned.

Laden with debts of 9 billion euros ($11.99 billion) from its acquisition of 51 percent of VW shares, Porsche Automobil Holding on Wednesday halted its original plan to seize control of VW, which is Europe's largest automaker, by raising its stake to 75 percent.

Instead the Porsche-Piech clan, which controls Porsche, wants to merge their Stuttgart-based sports car business with VW under a new holding company. Porsche would become the 10th brand in VW group alongside units such as Scania trucks, Skoda, Seat, Bentley and Lamborghini.

Winterkorn favorite

It's not clear who will run the new company. German press reports say VW group CEO Martin Winterkorn, 62, is favorite because Wiedeking has made too many enemies with his outspoken attacks on the way VW is run.

“Wiedeking has broken too much china,” said Stefan Bratzel, head of the Centre of Automotive Research at the University of Applied Sciences in Bergish-Gladbach, Germany.

Winterkorn also is a protege of VW Chairman Ferdinand Piech, who wants Wiedeking and Porsche's Chief Finance Officer Holger Haerter to be fired for amassing huge debts at Porsche, according to German media reports.

Wiedeking admits that a merger with VW is not what he hoped for. “It's not a marriage made in heaven, more a marriage of convenience,” Wiedeking told Porsche's 3,000 employees in Stuttgart on Thursday.

When Porsche first began building up its stake in VW in 2005, Wiedeking upset Wolfsburg's powerful trade unions by calling for “sacred cows” to be slaughtered.

He challenged VW's labor agreement that pays the company's German workers above the industry average and called for the abolition of the so-called VW Law. The law gives the north German state of Lower Saxony where VW is based a blocking minority on strategic decisions because it has a 20 percent stake in VW.

Wiedeking also upset Piech by criticizing as cars, which the VW patriarch had championed, such as the Bugatti Veyron and VW Phaeton.

Until the extent of Porsche's debts became clear in recent weeks, Wiedeking, 56, had seemed untouchable.

He was praised as one of the auto industry's brightest stars after turning Porsche from a bankruptcy candidate into the world's most profitable carmaker. His salary of 80 million euros last year made him Germany's highest paid boss.

Wiedeking loses key ally

Now some of Wiedeking's staunchest supporters are distancing themselves from him.

Porsche's labor boss Uwe Hueck was previously a key ally of Wiedeking's in challenging VW's trade union leaders and the VW Law. Hueck now says he wants a similar law at Porsche to protect its workers..

“I am concentrating on the workforce, the bosses are secondary,” Hueck said.

Porsche's workers are disillusioned. “Porsche is finished. We're VW now,” one worker told reporters at the factory gates.

Lower Saxony and VW labor leaders have threatened to block a VW-Porsche merger unless they win key concessions.

Lower Saxony Premier Christian Wulff insisted on maintaining the state's blocking minority stake, two seats on the supervisory board, and a veto on plant closures. He added that a merger was by no means a done deal.

VW's employee leaders said labor should continue to have a major say in how the new company is run.

Porsche will struggle to dictate terms of how the new company will look, analysts and bankers close to the deal say.

"Volkswagen and Lower Saxony are now in the driver's seat," Credit Suisse analyst Arndt Ellinghorst said on Thursday. "Porsche needs VW's cash, and VW doesn't need Porsche's debt."

Baby Audi’s a Mini marvel

Ultra-efficient city car takes firm into new territory – and could be the true spiritual successor to the Mini!

IT’s the all-new Audi that claims to pick up where the original Mini left off! This is the E1 – an ultra-efficient city car from the German firm and a model which is being hailed as a spiritual successor to Alec Issigonis’ masterpiece.

Sharing its platform with VW’s forthcoming up!, the newcomer takes Audi firmly into new territory. It’s designed to sit below the Polo-based A1 – due next year – as the entry point into its model line-up, and is aimed at the likes of the new Fiat Topolino and MINI Spirit (revealed in Issue 1,056). Signifying the launch of a new wave of hi-tech Audis, the E1 goes on sale in 2011 and will be the first car from the company to wear the ‘E’ tag.

It will be closely followed by a full range of E-badged models over the next five years. And with a hybrid version of the A1 due shortly after the standard supermini’s 2010 launch, Audi is clearly readying itself for an assault on the eco-friendly small-car market.

However, despite its diminutive size, the E1 will remain a premium product that fits in with the brand. Although its proportions are reminiscent of those of the VW up!, the familiar mesh-styled grille, short overhangs and huge front badge make the electric three-door instantly recognisable as an Audi. Futuristic front and rear LED light clusters, large alloys and a sharply rising waistline that meets a neatly kicked-up C-pillar complete the E1’s look.

Inside, buyers can anticipate more of the same, with a cabin that boasts the usual premium levels of material quality but with a more creative design. As previewed on the A1, the E1 will get a development of Audi’s new mobile device – essentially a hand-held portable sat-nav, phone and MP3 player with touchscreen display. The gadget replaces the key and plugs into the centre console.

The E1 will be packaged similarly to Toyota’s iQ, which means customers can expect a 2+1 layout with plenty of room up front and enough space in the back for luggage or one small passenger.

A variety of engines will be offered, although the star of the show will be an electric powerplant. It incorporates lightweight lithium-polymer batteries and a punchy electric motor driving the front wheels.

So the small, agile car will be ideal for city motoring, delivering 0-60mph in around 10 seconds. And with a full charge providing enough energy to travel up to 100 miles helped by regenerative braking, the plug-in machine will have real all-round ability.

In addition to the electric variant, there will be petrol and diesel versions, using new 600cc two-cylinder turbo units. These will aim to offer sub-100g/km CO2 emissions and economy of 94mpg. A 1.2-litre three-cylinder petrol is under consideration, too.

The E1 will be built at VW’s plant in Bratislava, Slovakia, alongside the up! as well as Skoda and SEAT variants. Audi’s version will carry a price tag of around £12,000, which will pitch it against rivals such as Smart’s electric ForTwo and Fiat’s forthcoming hybrid 500.

The electric E1 will be eligible for a Government grant worth up to £5,000 which will be made available to all buyers of electric cars and hybrids from 2011.

Bugatti Veyron Centenaire

New special edition Veyrons influenced by classic Bugatti Type 35 grand prix car

A special edition car is normally the sign of a model at the end of its life, manufacturers clamouring to sell the last few before ushering in a replacement. Not so for Bugatti. It has announced another four unique Veyrons, following on from numerous other special editions and limited colour combinations.

The Veyron Centenaire comes in four different flavours, the full set being revealed at the Concorso d’Eleganza supercar and classic show at Italy’s Lake Como. Each is a one-off, too, making this the rarest of special Veyrons, although it wouldn’t be a surprise if all four fall into the hands of existing Veyron owners.

The less than subtle colour scheme is a mix of garish polished aluminium and one of four hues from Bugatti’s classic Type 35 grand prix car. The latter is perhaps the brand’s defining moment, and its grille and wheels have had subtle influences on the Veyron’s design.

As well as being matched to a particular Type 35, each Veyron Centenaire also represents a driver from Bugatti’s illustrious racing past (2000 wins in ten years). As such, the cars bear the racing colours of each driver’s country as well as having their signature stitched into the headrests.

If you want to be patriotic, pick the green car, which represents England and Sir Malcolm Campbell. You also have the choice of red (Achille Varzi and Italy), blue (Jean-Pierre Wimille and France) and white (Hermann zu Leiningen and Germany).

As you may have guessed from the name, the Veyron Centenaire is celebrating 100 years of Bugatti. There’s more partying to come, too, with the next event at California’s Concours at Pebble Beach on August 16. More special editions? You wouldn’t bet against it…

Bugatti unleashes four-door Veyron

Royale shares coupé’s vast W16 engine, whilst mixing huge pace with more space and luxury

It's the Veyron for all the family! This is our best look yet at the stunning Bugatti Royale – a four-door four-seater that’s set to take the famous firm into a new market.

With the £900,000, 253mph Veyron 16.4 already crowned the world’s most expensive and fastest supercar, Bugatti is seeking to go a step further: it will celebrate its 100th anniversary by unveiling this hyper-saloon at the Frankfurt Motor Show in September.

Inspired by the legendary 1927 Type 41 Royale, the new model would be as expensive as its brother and be available in a very limited production run for the company’s most loyal customers. As you can see, the exterior echoes the Veyron’s, while inside the cabin will offer unparalleled luxury, with the finest leather, suede and metal trim in addition to seating for four people and a luggage compartment at the rear.

Bugatti won’t be embarking on the project alone, though. It’s rumoured that the firm will team up with fellow VW Group luxury manufacturer Bentley in developing a new front-engined limousine platform. As well as underpinning the Royale, the chassis would be used on the next Arnage. However, the new Bugatti will keep much of the technology seen on the Veyron, such as its four-wheel-drive set-up and 8.0-litre quad-turbo W16 engine, although this will be mounted at the front.

With the same 987bhp and 1,250Nm of torque, the Royale should cover 0-60mph in three seconds and hit a 250mph top speed, making it the fastest four-seater in the world. It will also feature the same seven-speed twin-clutch transmission – developed by UK firm Ricardo – along with that Haldex clutch-equipped all-wheel drive. There will be active aerodynamics, a Veyron-style hydraulic rear wing that rises at speed, huge carbon composite brake discs and adaptive dampers, too.

The current economic downturn means the Royale is still some way off. But with McLaren Automotive boss Ron Dennis predicting a return to growth in 2011, just in time for the launch of his company’s P11 supercar (see Issue 1,060), expect the four-door to go on sale in three years’ time.

In further celebration of its 100th birthday, Bugattiis also planning to launch a 1,350bhp ‘super’ Veyron later this year, along with additional special editions.

GM prepares to announce Pontiac closure next week

General Motors is preparing to announce early next week that the Pontiac brand will be eliminated, said a source familiar with the company's plans.

The announcement will be made as part of an updated viability report to the U.S. auto task force, the source said. A second source indicated earlier this week that GM, surviving with $15.4 billion in U.S. bailout funds, was considering phasing out Pontiac instead of sticking with a plan to have it continue as a niche brand.

In its proposal to the U.S. Treasury on Feb. 17, GM said Cadillac, Chevrolet, Buick and GMC would be its four core U.S. brands. On March 31, the task force told GM that its restructuring plan wasn't aggressive enough and denied a request for $16.6 billion in additional aid.

Pontiac spokesman Jim Hopson declined to comment on Pontiac's future.

"I can't speculate what next week is going to hold," he said. "When we were asked to go back and look at the viability plan, everything went back on the table. We're reviewing everything. Nothing is sacred. We're still under the original viability plan until told otherwise."

The U.S. today granted $2 billion to keep GM operating while it prepares for a new, June 1 restructuring deadline. GM has been staying afloat with $13.4 billion in U.S. loans granted in December by President George W. Bush.

Bloomberg News said GM is expected to tell the government that it will stick with plans to keep GMC, Buick, Chevrolet and Cadillac.

Saab, Hummer and Saturn are for sale.

Muscle-car icon

Pontiac, which launched the 1960s U.S. muscle-car era with the GTO, sold 267,348 vehicles in the United States last year, less than a third of its 1978 peak of 896,980. This year's volume dropped 43.5 percent through March as industrywide demand fell 38.4 percent.

"Pontiac is one of my favorites -- I especially like the G8," said John Pitre, general manager of Motor City Auto Center in Bakersfield, Calif., which sells Buick-Pontiac-GMC and Saturn. "I would be sad to see it phased out. However, if some of those products became part of the Buick brand, I could understand GM's logic."

Chris Haydocy, who owns a Buick-Pontiac-GMC store in Columbus, Ohio, said Pontiac isn't essential as long as the revamped sales channel provides most of what customers are looking for.

Said Haydocy: "I think you need 10 or 12 models to do that."

Killing Pontiac would make sense, said George Peterson, president of marketing and product consulting firm AutoPacific Inc.

"It's sort of a shadow of itself," he said. "All of the Pontiacs, except for the G8, are copies of Chevrolets or GMCs, so there really isn't any reason to keep Pontiac around.''

GM introduced Pontiac in 1926. GM decided to kill Oldsmobile in 2000, three years after its 100th anniversary.

Tokyo go, go for storming Lexus supercar

V10-engined LFA will be star of Japanese expo.

It's the news every supercar fan was desperate to hear: the Lexus LFA is going into production! Although Honda has canned plans for a new NSX, the wrap,s will be taken off the LFA at October’s Tokyo Motor Show.

The two-seater flagship will feature a 600bhp V10, giving 0-60mph in less than four seconds and a 200mph-plus top speed. Expect a light carbon fibre body with a pop-up wing, rear-wheel drive and an F1-style paddleshift box.

A replacement for the Celica will also be revealed at Tokyo. This rear-driven coupé is the result of a joint project by Toyota and Subaru, and features an Impreza platform and drivetrain. But the show could be short on launches from other makers. Ford, GM, Chrysler, Mercedes, Renault, Volkswagen and Lamborghini have all pulled out of the expo, blaming the economic downturn. This follows news that the British Motor Show has been cancelled for similar reasons.

MR2 set to return as Prius coupé?

Production of MR2 stopped in 2007; new car will be a coupé instead of roadster

The MR2 is making a comeback, Auto Express can reveal. Toyota is developing an exciting performance hybrid which would revive the much loved sports car and rival Honda’s upcoming CR-Z.

It’s set to swap its predecessor’s roadster shape for that of a compact coupé. Under the skin will be a rear-wheel-drive chassis, a paddleshift gearbox and a specially developed version of the Prius’s hybrid powertrain.

The new model will boast an amazing blend of performance, economy and low emissions, all wrapped up in a stunning body. It would be a fitting successor to the MR2, which ceased production in 2007.

Speaking exclusively to Auto Express at the Geneva Motor Show, Toyota executive vice president Masatami Takimoto said: “We are aware of the fondness with which the MR2 is held in the UK and Europe, and are developing a small hybrid sports car.

“We have set a tough price point (expected to be around £20,000), as it will be easier to sell if it is affordable. It has to be fun to drive, too, which means the hybrid set-up must be different to the Prius’s, with greater responsiveness.”

These artist’s impressions give you an idea of how it will look. At the front it mixes cues from Toyota’s FT-HS sports car concept with a deep lower air intake, while the side has a kick up on the door towards the roof. At the rear are lights from the FT-HS and a neat diffuser-style lower bumper.

The key challenge for Toyota will be developing a powertrain that’s sporty to drive. It will have to improve the rate at which the batteries charge and discharge, for razor-sharp responses.

If the company gets it right, the car could do 0-60mph in seven seconds, yet return 60mpg and emit less than 100g/km of CO2. A new MR2 would be a desirable addition to the range, but Toyota is concentrating more on family hybrids at the moment, with 10 being launched over the next 12 months.

MINI Spirit returns

British legend's big plans for new small car are exclusively revealed

It’s MINI’s biggest ever secret – and autoexpress.co.uk has all the details.

We’ve uncovered a bold plan by the British car maker to develop a new family of city cars, including a zero emission flagship powered by an advanced electric engine.

Though exact details remain scarce, it’s believed that the ultra efficient model line up will also offer drivers fuel sipping petrol engines as MINI owner BMW seeks to build an army of green machines aimed at beating tough legislation on CO2 and other gas emissions due in 2012.

Set to hit the road as early as 2011, it’s been confirmed to Auto Express that the top-secret machine is being developed alongside two new models from a joint venture between Fiat and BMW that’s tipped to mark the return of the famous BMW Isetta and Topolino nameplates

Aimed at a fast growing family of soon to be launched rivals – including Volkswagen’s Up! and a new family of small electric cars from French maker Reanult, MINI is promising to return to its roots with a lightweight model the promises to be every bit as innovative as the 1959 original.

It’s said to be no accident that MINI has chosen its 50th year to begin to develop such a ground breaking new model.

With its engine in back, petrol models will offer four seats and easy to access four door cabin. Individual chairs for driver and passenger will ensure safety is first rate, while the car’s wheel at each corner stance promises to ensure the car feels secure and stable on the road.

Plenty of effort is being poured in to ensuring that visibility is as good as it can possibly be with a large glass area set to ensure that the car is as easy as possible to drive on congested city roads.

Also under consideration is lightweight, tough plastic bodywork, like that fitted to the Mercedes Smart, while the car’s chassis will mix aluminium and composite materials like carbon fibre to deliver enormous strength and light weight.

Electric models could further improve the car’s interior space by locating the batteries in a thin sandwich under the car, and placing electric motors in all four wheels.

Technology to propel this version of the machine is reportedly already well advanced, and has already been publicly trialled in a prototype MINI called the E. This machine, which uses a battery and engine set up similar to that developed by American sportscar firm Tesla is set to be made available in small numbers in both the USA and Germany.

There’s no word on pricing for the newcomer, but given the advanced technology it’s expected to offer, it’s likely that flagship models will cost at least £20,000. A concept paving the way to full production is tipped to make an appearance at this year’s Frankfurt Motor Show.

Dealers aim to raise 400mn euros to buy Opel/Vauxhall stake

Opel/Vauxhall dealers plan to raise 400 million euros to buy a minority stake in the troubled General Motors-owned brands.

Euroda, which represents 4,000 Opel/Vauxhall dealers in 25 European countries, plans to establish a fund to take a stake in the brands.

Each dealer would pay 150 euros into the fund from profits on each car they sell over the next three years in return for a stake in a new Opel/Vauxhall company.

GM Europe, which runs Germany's Opel and UK-based Vauxhall, is asking European governments for help to finance a 3.3 billion euro cash shortfall. The automaker has said it is open to discussions on partnerships or equity positions.

Euroda acknowledged that its fund would only raise enough cash to finance a minority stake in the automaker but said its plan would give a clear signal of support to governments, Opel/Vauxhall workers, and -- above all -- customers.

Opel/Vauxhall dealer associations in different countries will vote on the proposal in the coming weeks and a final vote will be held at the next Euroda meeting on May 15.

Euroda Chairman Jaap Timmer said: "Opel/Vauxhall dealers have 125,000 employees and they are responsible entrepreneurs who want to preserve these jobs as well as their investments."

Last week, GM Chief Operating Officer Fritz Henderson said that GM Europe would run out of money early in the second quarter if it did not receive financial support.

GM delays innovative new diesel truck engine

General Motors' deteriorating financial situation has caused the company to delay one of the most advanced engines that it has ever designed, a 4.5-liter diesel for light-duty trucks.

"We have to make tough decisions right now," said GM Powertrain spokeswoman Susan Garavaglia.

Truck enthusiasts were eagerly awaiting the engine, which would have started production next fall at GM's plant in Tonawanda, N.Y. The engine has unique cylinder heads that eliminate the intake and exhaust manifolds. Its lightweight block has advanced castings for the crankshaft-bearing journals and oil-circulation system.

GM had planned to install the engine in the Chevrolet Silverado and GMC Sierra pickups. The result would have been a fuel-efficient truck priced for less than the heavy duty diesel-powered trucks available now.

The move comes three weeks before a U.S. auto task force is set to determine whether the automaker deserves an additional $16.6 billion in federal aid. GM, kept afloat by $13.4 billion in U.S. loans received so far, is trying to shed brands, sell assets and curb spending as it battles a worldwide collapse in auto sales after four profitless years.

Selling the rights? GM has been awarded several patents for the engine design, and early tests have shown the new motor to be as smooth and quiet as a gasoline engine. Development of the engine was far along when the decision was made to put the program on hold. Rights to the engine may be sold to another company, Garavaglia said. If GM decides to revive the engine, it would likely take at least a year for it to enter production. Meanwhile, GM will not be out of the diesel truck business. The company will continue to offer the 6.6-liter Duramax engine in heavy-duty pickups and modify it as necessary to meet tougher emissions standards. GM also has just launched Two Mode hybrid versions of the Silverado and Sierra, which get an EPA rated 21 mpg city and 22 mpg highway. The 4.5-liter diesel would have raised the trucks' fuel economy into the mid to high 20s mpg. Last month, GM scrapped plans to build an engine plant for the upcoming Chevrolet Volt plug-in hybrid and Cruze small car. Instead, the engines will initially come from a European factory while an existing factory in Flint, Mich., is retooled to make the new engines. GM Powertrain Group Vice President Tom Stephens recently said that all of GM's future production plans are constantly being re-evaluated.

Mercedes Gullwing

Merecedes confirms plans for thrilling new gullwing model at Geneva Motor Show

It’s official! Mercedes has finally confirmed its plans to launch a new AMG supercar at this year’s Frankfurt Motor Show.

The all-new machine, called the Mercedes SLS AMG is said to represents ultimate in AMG driving dynamics and performance, according to company chairman Volker Mornhinweg.

Smaller and lighter than the McLaren-Mercedes SLR, the SLS is based on a new aluminium spaceframe chassis.

Developing around 570bhp at 6800rpm, Mercedes claims the 6.3-litre V8 machine will sprint from 0-60mph in 3.8seconds while top speed is electronically limited to 196mph.

Drivers will get a 7-speed dual-clutch transmission (first seen in the SL63 AMG and located in the rear transaxle) while the engine is dry-sumped in order to keep the centre of gravity as low as possible.

Supension matches conventional coil springs with twin aluminium wishbones at each corner, lightweight ceramic brake discs are an option.

There;s still no clear word on price, however the car is due to go on sale in summer 2010.

A source close to the project suggested drivers could expect to pay around 150,000 euros - less than half the price of the outgoing SLR.

Renault's electric future

You wait years for an electric Renault and then several turn up at once!

In a shock revelation to Auto Express in Geneva, top brass at the French firm has revealed more than one battery-powered model will be unveiled at the Frankfurt Motor Show in September.

And that’s not all, they also confirmed we’d have the chance to drive them before the year’s out.
In an interview with Renault design chief Patrick Le Quément, he revealed that the first electric car will be based on a soon to be launched petrol-powered car – likely to be the facelifted Clio – whereas the other models will be designed from scratch, specifically to run on batteries.

“Designing electric cars is a completely new challenge,” said Le Quément. “Factors such as the positioning of the power packs and the need for a reduced glass area mean conventional-looking designs simply don’t work.”

It also appears that the firm is set to take an equally innovative approach to selling its vehicles too, hinting the production cars could be cheaper to buy than their petrol equivalents.

The firm is looking to adopt a system which would see the cars sold to customers without expensive batteries included. These would then be leased. While it's not clear how much this would cost, Renault has promised that the eventual outlay required would be less than the cost of fuelling the vehicle with Petrol.

This system would also allow drivers to drop in on specially adapted charging stations, where depleted batteries could either be charged, or simply swapped for a full one.

Aston Martin DBS Volante

Making its debut at the Geneva Motor Show next month, the new drop-top will line up alongside the V12 Vantage and new Lagonda luxury saloon, giving show goers a triple treat of fresh metal.

Described by Aston Martin as the “the ultimate open air motoring experience”, the DBS Volante gets the same mighty 6.0-litre V12 as the coupe and stunning looks with a fabric hood that closely follows the silhouette of the coupe.

Capable of dropping at the touch of a button in just 14 seconds and at up to speeds of 30mph, the roof automatically stows under a re–sculpted tonneau cover, which maintains the slick look of the coupe. And as you can see, all the styling cues from the storming DBS coupe are carried across.

The front end gets sleek air intakes, a low splitter and bonnet air vents, the side skirts are lower while at the rear are clear lens covers for the taillights, a subtle boot-lid spoiler and a diffuser. While the bonnet, front wings and boot lid are made from carbon fibre, the DBS Volante is quite a bit heavier than the coupe.

To cope with the loss in stiffness associated with the removal of the hard-top, extra strengthening – including a rigidly mounted rear subframe – has gone into the bonded aluminium chassis chassis. As a result the Volante tips the scales at 1810kg – some 115kg more than the coupe.

Despite this extra weight, performance isn’t really affected. Under the bonnet lies the same 6.0-litre V12 as the DBS coupe. Based on the same unit that powers the DB9, it gets an uprated airbox, which takes peak power to 510bhp and torque to 570Nm. Standard transmission is a six-speed manual gearbox with the option of Aston Martin’s semi-automatic Touchtronic ‘box.

The Volante posts almost identical performance figures to the coupe, accelerating from 0-62mph in just 4.2seconds (0.1seconds down) and hitting the same top speed of 191mph. Carbon ceramic brakes do the stopping while adaptive dampers and double wishbone suspension with 20-inch alloy wheels and sticky Pirelli P-Zero rubber should mean the Volante is prodigious around corners. Inside the luxurious 2+2 cabin gets a bespoke Bang and Olufsen sound system as standard.

On sale this autumn, the DBS Volante is expected to cost around £170,000 – some £11,000 more than the coupe.

Bentley Supersports

Meet the fastest, most powerful Bentley in history – the stunning Continental Supersports!

Packing a 621bhp 6.0-litre W12 engine, the brutish two-seater coupe can accelerate to a top speed of 204mph. But it’s also green too, as it’s capable of running on renewable biofuel as well as petrol.

Making its worldwide debut at the Geneva Motor Show in March, the mighty machine will go on sale in the UK in Autumn, where it will sit above the 200mph Continental GT Speed as the flagship sports car in the Bentley range.

The result of two-year project by a small number of Bentley designers and engineers, the Supersports is the fastest and most driver-focused Continental yet.

As well as more power, it gets uprated brakes and suspension, a ‘Quickshift’ automatic gearbox and a tweaked four-wheel drive system. It has also undergone an extension weight-saving programme, with lightweight components such as carbon-fibre seats helping it shed 110kg over the GT Speed on which it’s based.

The most obvious change is the muscular bodykit, which packs flared rear wheelarches and wider side sills to cover an increased rear track, larger twin exhaust pipes and a modified rear valance, plus 20-inch 10-spoke alloy wheels. A new dark-smoked steel finish is applied to all exterior ‘brightware’, including the front grille, lamp bezels, window surrounds and wheels.

At the front are a host of intakes and twin bonnet vents, which help provide 10 per cent more air to the uprated 6.0-litre twin-turbocharged W12 engine. With increased turbo-boost pressure, it produces 621bhp at 6,000rpm – 21bhp more than the GT Speed – and another 50Nm of torque taking output to a staggering 800Nm between 1,700-5,600rpm.

Together with the weight loss and the Quickshift transmission, which reduces shift times by 50 per cent, the Supersports does 0-60mph in 3.7 seconds, 0-100mph in 8.9 and jumps from 50mph-70mph 2.1 seconds. With a top speed of 204mph, the Supersports is the fastest Bentley ever made.

The engine is also Bentley’s first ‘FlexFuel’ unit, capable of running on E85 bioethanol or petrol or a combination of the two. The firm has committed to making its entire range FlexFuel-compatible by 2012 and claims that biofuel reduces CO2 output by 70 per cent from its production to its use in a car. Although it’s unlikely the Supersports is much cleaner than the xxg/km GT Speed at the tailpipe, or any more economical.

Positioned as the most driveable Continental GT ever, the Supersports’ rides 10mm lower at the front and 15mm lower at the rear. The anti-roll bars get new geometry, there are new bushes to increase stiffness while the power steering system has been tuned for improved feel.

The Continuous Damping Control (CDC) system has also been tweaked for better response, while the four-wheel drive system now sends power 40:60 per cent in favour of the rear wheels, rather than 50:50 of the standard GT Speed. Ultra-sticky Pirelli tyres, standard fit carbon ceramic brakes and a revised traction control system, which allows more wheelslip, complete the dynamic upgrades.

“The Supersports is an immensely capable real-world supercar with agility and traction in all driving situations”, says Brian Gush, director of chassis and powertrain engineering. “The new rear-bias all-wheel drive and retuned ESP allows the driver to fully exploit the potential of the W12 engine and optimised chassis.”

As you’d expect, the cabin is luxuriously trimmed, but the Supersports uses new, non-traditional Bentley materials including carbon fibre and Alcantara suede. A strict two-seater, the rear seats are replaced by a luggage area while up front, the lightweight sports shells feature carbon-fibre backs and can be individually tailored to the owner.

The headlining, rear compartment and the seat centre panels are finished in Alcantara high quality suede-like material, while the seats get soft-leather with a ‘diamond’ upholstery pattern as do the steering wheel and gear lever. Carbon-fibre replaces the wood veneer on the centre console and facia.

No prices have yet been revealed but the Supersports is expected to cost in excess of £150,000. A limited production run is likely too.

Renault Clio

Sharpened up Clio arrives with an all-new look and a hot GT model...

Take a look at Renault's new family favourite. This is the facelifted Clio, which has been revealed here for the first time in sporty new GT guise.

The refreshed supermini lands in May with a face to match that of the new Megane and Laguna, lowering the main radiator grille below the bumper to give it the same sleek look as its bigger brethren.

The Clio outsells the next most popular Renault by two to one in the UK, but last year sales fell by over a third compared to 2007. The new GT will help stem the losses by creating a bridge between the rampant Renaultsport hot hatches and the more sensible models below.No engines have been announced, but we’re expecting to see the 138bhp two-litre petrol and the highest power 1.5-litre diesel under the bonnet.

The GT’s suspension will be stiffer and lower compared to the regular Clio and you’ll spot plenty of visual clues to its sporting pretensions, including extensions to the sills and lower grille, and twin exhaust pipes. Inside, the seats loudly proclaim the GT status and there’s also drilled aluminium pedal covers.

Meanwhile the whole range comes with the option of cut-price in-built sat nav. Thanks to a tie-up with TomTom, the usually steep bill has been slashed to “hopefully well below £500”, according to a Renault spokesman.

The fixed system can be updated on-line via a removeable SD card and it comes with traffic warnings, speed camera locations and speed limit information. Engines are expected to follow the current line-up, dominated by the 1.2 petrol and 1.5-litre diesels. Only the lower powered diesels fall into the £35 band-B tax bracket at the moment, but that could change with the launch of the new model.

New interior trims will be offered, but any owners of the current car looking to swap will be hoping Renault has cured the misting problem highlighted by several Clio III drivers.

Aston’s fastest Vantage roars in

V12 supercar promises 190mph top speed and will features lighter, more muscular body.

Meet the fastest, most powerful Vantage ever! This is Aston Martin’s new V12-engined supercar – a striking machine which packs race-derived technology into a stunning body. And Auto Express has been given access ahead of its world debut at next month’s Geneva Motor Show.

The V12 Vantage was first seen as the RS concept in 2007, and the production version has lost little in its translation from dream to reality. Under the many bonnet louvres lies a mighty 6.0-litre V12 producing 510bhp and 570Nm of torque. That’s 90bhp and 100Nm more than the regular 4.8-litre V8 Vantage. The powerplant is hooked up to a six-speed manual gearbox driving the rear wheels. This means the new model does 0-62mph in 4.2 seconds and accelerates on to a top speed of 190mph.

The new hand-built unit has been developed from the same V12 found in the bigger DB9, as well as the LMP1 Le Mans 24 Hours racer.

Engine airflow is improved by an intake bypass that opens up at 5,500rpm, along with a revised induction system and re-profiled inlet ports. The bigger unit is 100kg heavier than the V8, but by fitting carbon ceramic brakes, new 19-inch 10-spoke aluminium alloys, lightweight inner body panels and optional carbon and Kevlar seats, Aston has kept overall weight gain down to only 50kg.

The rear suspension is more compact to accommodate wider wheels and tyres, while the ride height is lowered by 15mm. In addition, the springs have been stiffened by 45 per cent, and the front and rear anti-roll bars by 15 per cent and 75 per cent respectively. As a result, the V12 Vantage is said to generate up to 1.3G of cornering force.

Most of the body panels are new, and the car looks just as aggressive as the concept. More muscle has been added to the standard model’s meaty shape, with some inspiration from the N24 race car.

At the front is a new splitter, while the bonnet features neat louvres, the side skirts are deeper and there’s a pronounced boot spoiler.

These changes are designed to improve the aerodynamics, although there are plenty of stylish updates, too – such as neat spotlights in the front spoiler and clear lenses in the tail-lamps.

Inside, the instrument dials are easier to read, while carbon fibre door pulls are accompanied by Alcantara suede. The new centre console also features a Sport button which sharpens throttle response and opens up baffles in the exhaust, giving the car a sportier sound.

A three-stage traction control system is also added to the mix. In normal mode, the Dynamic Stability Control package is automatically on, but selecting ‘track mode’ raises the level at which it intervenes, allowing the driver to slide the car more before the system cuts in.

Aston Martin says it will limit production to 1,000 models, with deliveries starting towards the end of the year. Prices haven’t been confirmed, but it is expected to cost just under £140,000.