Porsche 911 GT3

The Series 2 997 GT3 performance car is unveiled

Porsche has revealed the new 911 GT3. It’s the second 997 iteration of our favourite real-world 911, but it’s more than just a mere facelift.

The headline news sits at the very back of the car. The engine is new; still a flat six, but up to 3.8 litres with power hiked 20bhp to 429bhp. Mid-range torque is also improved by tweaking cylinder head gas flow. It means performance gets a shove in the right direction: 0-62mph now takes 4.1sec, 99mph arrives in 8.2sec and top speed is up slightly at 194mph.

Porsche has also made moves to make this the hardest and most dynamic GT3 yet. There’s a new version of PSM (Porsche Stability Management) that allows the stability and traction control systems to be turned off completely. The rather similar sounding PASM (Porsche Active Suspension Management) boasts stiffer springs and anti-roll bars in sport mode but a more compliant ride for everyday use in its normal setting.

There’s modified aerodynamics with front and rear downforce boosted and boasts that overall air pressure pushing down on the car is more than twice that of the current 997 GT3. There are larger yet lighter brake discs that help lessen unsprung weight, which is also reduced via new, lighter alloys. PCCB (or if you prefer, ceramic brakes) is on the options list, with a version of the acclaimed braking system designed specifically for the new GT3.

There are options for the many 911 buyers who take their cars on the track, too. They can specify PADM – yet another acronym that basically stands for engine mounts. The regular, ‘elastic’ engine mounts can be replaced with harder, more resistant ones which reduce the effect of mass forces from the rear-mounted drivetrain, improving traction through bends and when accelerating. Also on the options list is a front-axle lift that raises ground clearance by a useful 30mm for bumpy surfaces and for aid in clearing inconvenient speed humps.

Not on the options list is PDK, Porsche's double-clutch gearbox. For now at least the GT3 is a manual-only car.

The mk2 997 GT3 will debut at the Geneva motor show on March 3, with UK sales kicking off in Autumn 2009. Prices start at £81,914, a rise of about £1300.

Jaguar's reborn XJ220

Bosses insist it doesn’t exist – but we lift the lid on big cat’s plans for stunning new 200mph Audi beater...

It’s set to be one of the fastest cars ever built, and positive proof that the future of the British motor industry has never been brighter…

Jaguar is getting ready to reinvent its stunning XJ220, Auto Express can sensationally reveal – and it looks likely to make a dramatic appearance at a major international motor show in the next 18 months.

According to our network of spies, the revolutionary sports car is being developed by the firm’s best engineers as a rival to the Audi R8. It’s based on an all-new aluminium chassis, which has been developed using the same know-how behind both the XJ and XK models.

The car will have aluminium panels stretched over an alloy and composite tub, while under the bonnet is likely to be a tuned version of the 503bhp 5.0-litre supercharged V8, set to power the eagerly anticipated XFR. A mildly modified version of this engine has already propelled a near-showroom-spec XFR to an incredible 225mph on the Bonneville salt flats in the US. The new supercar is likely to match this figure, while the sprint from 0-60mph should take less than four seconds.

The two-seater is tipped to be called the XE, and has been styled by a team led by Ian Callum. Our exclusive pictures offer a taste of what drivers can look forward to. Pulling together the very latest in design and combining it with influences from the company’s history, the model evokes the best of Jaguar’s past and present.

At the front, there’s an oval grille – inspired by that on the E-Type – framed by narrow, ultra-efficient LED headlamps. A steeply raked windscreen keeps the car’s overall height as low as possible, while the wide rear end supports buttress C-pillars, similar to those on the new Ferrari 599 GTB. As in the R8 and Ferrari’s F430, the engine will be visible through the rear windscreen.

Wide air intakes dominate the model’s front end, and deep scoops in the flanks help feed cooling air to the supercharged engine. Yet despite the new Jaguar’s huge performance potential, environmental credentials are set to be at the top of the agenda. CO2 emissions will be less than 300g/km, while the powerplant will be capable of running on biofuel-blended petrol – so the newcomer will be one of the cleanest high-performance cars money can buy. Liberal use of lightweight materials, including aluminium and carbon fibre, will further improve the machine’s fuel efficiency and performance.

Despite Auto Express’s scoop, Jaguar is denying this car exists. A spokesperson insisted that it was not in the company’s product plans… Speaking at the Detroit Motor Show, Jaguar managing director Mike O’Driscoll didn’t rule out the potential to add to the line-up, but claimed the company’s focus at present was solidly on the XK, XF and forthcoming XJ.

“I’d love Jaguar to build a sports car one day,” he said. “It would complement our flagship XK coupé. The brand is all about producing great sports cars and sports saloons.”

Murcielago SV

Lightweight SV version of Lamborghini Murcielago supercar

Rumours about a lightweight version of the Lamborghini Murcielago are thickening, with technical figures and styling details apparently leaked to online sources.

The Murcielago LP670-4 SV is said to produce 661bhp (the name once again denoting PS rather than horsepower), a healthy 30bhp more than the current LP640 (pictured) and even better when mated to the 100kg the SV will apparently drop from the 1665kg standard car. It means the 0-60mph sprint drops to 3.2sec and top speed rises to 213mph.

As the -4 suffix suggests, the car while remain all-wheel drive. Carbon ceramic brakes are said to be standard fit, too - probably helpful when it comes to hauling in a ton and a half of hypercar. Styling is likely to be much more aggressive to mark out the more hardcore Murcielago, with liberal use of carbon fibre and matte black paint suggested. Let's hope a big SV vinyl will be on the options list like it was with the stripped-out Diablos. Inside, expect a mix of carbon fibre and alcantara.

Prices are predicted to be around 25 per cent more than the LP640, meaning the SV should set you back £250,000 - not bad value when stacked up against a comparable Pagani. A March 2009 unveil is on the cards, apparently, which ties in nicely with the Geneva motor show. If the SV shows its face there, expect a very limited run of LP670-4s from the summer. The SV will most likely be coupe only.

Fiat plans to acquire 35% stake in Chrysler

Both Fiat S.p.A. and Chrysler LLC would fill significant gaps in their global businesses with the proposed alliance announced today.

The deal would give Fiat Auto, which sells virtually no vehicles in the United States, manufacturing capacity and a U.S. sales network. It also would give Fiat Auto the global automotive volume that Fiat Group CEO Sergio Marchionne says the company needs to survive.

Chrysler, meanwhile, could expand its product portfolio to include Fiat's small, less-polluting cars and gain distribution in Europe and Latin America. Chrysler could add volume to its U.S. plants by building Fiat vehicles for sale here.

One thing Chrysler doesn't get is money. The deal, which would give Fiat an initial 35 percent stake in Chrysler, involves no cash investment.

A joint statement by Chrysler, Fiat and Chrysler's majority owner, Cerberus Capital Management LP, said "the alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future."

The nonbinding agreement is subject to due diligence and regulatory approval.

It appears that Fiat's stake would come entirely from Chrysler's majority owner, Cerberus, and not from Daimler AG, which has been trying to sell its remaining 19.9 percent stake in Chrysler.

The UAW supports the deal.

Fiat Vice Chairman John Elkann told reporters today that the Italian group could increase its Chrysler stake from the initial 35 percent. According to press reports, Fiat will have an option to take as much as 55 percent.

"We can raise that" initial share, Elkann said, without being specific. "It's a good deal. ... We have already said that it's important to have consolidation in the auto sector."

The pact "would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrains and components to be produced at Chrysler manufacturing sites," the companies said.

Under the terms of the deal, Fiat would make available its distribution network in key growth markets. "Substantial cost savings opportunities" would be available to the alliance, the companies said.

Optimize global supplier base

The carmakers said a tie-up would allow them to take advantage of each other's distribution networks. They also said there would be opportunities "to optimize fully their respective manufacturing footprint and global supplier base."

Fiat Group CEO Sergio Marchionne said the alliance "confirms Fiat and Chrysler commitment and determination to continue to play a significant role" in the global auto industry.

That is consistent with Marchionne's view that the current economic crisis will reduce the number of global automakers.

In an interview published last month in Automotive News Europe, Marchionne said that within two years there could be only six global automakers.

"The only way for companies to survive is if they make more than 5.5 million cars per year," Marchionne told the publication, an affiliate of Automotive News.

In 2007, the most recent year for which global data are available, the two companies produced a combined 5,386,073 vehicles worldwide, which would have ranked them fifth globally. Fiat Auto produced 2,813,870 vehicles, and Chrysler produced 2,572,203.

Chrysler CEO Bob Nardelli says the alliance "creates the potential for a powerful, new global competitor." He said in a statement that Chrysler will benefit from "access to products that complement our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing."

Although Chrysler has expanded global sales in recent years, its limited presence outside the U.S. has been a longstanding weakness -- one that the acquisition by DaimlerChrysler, which unraveled in 2007, was meant to solve.

Nardelli also said the partnership would help solidify the future of Chrysler, which has received a $4 billion federal bailout loan, as well as a $1.5 billion federal loan to Chrysler Financial.

The Fiat alliance would "provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace, sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs," Nardelli said.

Ron Gettelfinger, president of the UAW, said: "This is great news for the UAW Chrysler team, and we look forward to supporting and working with them to ensure Chrysler's long-term viability."

A Daimler spokesman declined to comment on prospects for a combination of Fiat and Chrysler other than to say: "We welcome any initiative that serves to stabilize the situation at Chrysler and preserve jobs at the company."

Reuters contributed to this report

PRESS RELEASE: Fiat Group, Chrysler and Cerberus Announce Plans for a Global Strategic Alliance

Fiat S.p.A., Chrysler LLC (Chrysler) and Cerberus Capital Management L.P., the private investment majority owner of Chrysler LLC, announced today they have signed a non-binding term sheet to establish a global strategic alliance.

The alliance, to be a key element of Chrysler's viability plan, would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrain, and components to be produced at Chrysler manufacturing sites. Fiat would also provide distribution capabilities in key growth markets, as well as substantial cost savings opportunities. In addition, Fiat would provide management services supporting Chrysler's submission of a viability plan to the U.S. Treasury as required. Fiat has been very successful in executing its own restructuring over the past several years. The alliance would also allow Fiat Group and Chrysler to take advantage of each other's distribution networks and to optimize fully their respective manufacturing footprint and global supplier base.

The proposed alliance would be consistent with the terms and conditions of the U.S. Treasury financing to Chrysler. Per the U.S. Treasury loan agreement, each constituent will be asked to contribute to Chrysler's restructuring effort including: lenders, employees, the UAW, dealers, suppliers and Chrysler Financial. Such steps would greatly contribute to Chrysler's long term viability plan. Completion of the alliance is subject to due diligence and regulatory approvals, including the U.S. Treasury.

As a consideration for Fiat Group's contribution to the alliance of strategic assets, to include: product and platform sharing, including city and compact segment vehicles, to expand Chrysler's current product portfolio; technology sharing, including fuel efficient and environmentally friendly powertrain technologies; and access to additional markets, including distribution for Chrysler vehicles in markets outside of North America, Fiat would receive an initial 35 percent equity interest in Chrysler. The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future.

"This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process. The agreement will offer both companies opportunities to gain access to most relevant automotive markets with innovative and environmentally friendly product offering, a field in which Fiat is a recognized world leader while benefitting from additional cost synergies. The deal follows a number of targeted alliances and partnerships signed by the Fiat Group with leading carmakers and automotive suppliers over the last five years aimed at supporting the growth and volume aspirations of the partners involved," the CEO of Fiat Group, Sergio Marchionne said.

"A Chrysler/Fiat partnership is a great fit as it creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits, including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," said Bob Nardelli, Chairman and CEO of Chrysler LLC. "This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the Government Loan. The partnership would also provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace, sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs."

"This is great news for the UAW Chrysler team and we look forward to supporting and working with them to ensure Chrysler's long term viability," said Ron Gettelfinger, President United Auto Workers (UAW).

"We're on board with this important strategic initiative as it will help preserve the long-term viability of our great company, its brands and of course UAW-Chrysler jobs," said General Holiefield, Vice President, United Auto Workers (UAW).

Merger facts Italy's Fiat, which needs a partner to survive the auto crisis, has agreed to take a 35 percent stake in Chrysler LLC. Here are some key statistics about the two groups: FIAT • Key car brands are Fiat, Lancia and Alfa Romeo. • Also owns luxury sports car makers Ferrari and Maserati. • Has a market capitalization of about $7.5 billion. • Trading profit for the entire group including Iveco trucks and CNH tractors was 802 million euros ($1.04 billion) in the third quarter on sales of 14.3 billion euros, up from 13.9 billion a year earlier. • Main markets are Europe and Brazil. Nearly all of the profit for Fiat Auto comes from Brazil. • Founded in 1899 and steered from 1902 by Giovanni Agnelli whose grandson Gianni, chairman from 1966, was a legend of Italy's corporate scene, known as much for his society lifestyle as his business acumen. • Has struck a series of alliances with other manufacturers, including India's Tata and China's Chery. • In 2000, in the midst of a debt crisis, Fiat struck a deal with General Motors in which the U.S. car maker took a stake. The agreement was dissolved in 2005. • Current CEO Sergio Marchionne took over in 2004 and put in place a plan to turn the car maker around which was successful, but the company has suffered like others in the current global crisis. CHRYSLER • Founded in 1925. • Best-known models include Dodge, Plymouth and Jeep. • Bought by Germany's Daimler in 1998 in a $36 billion deal. • Daimler sold 80.1 percent of Chrysler in 2007 to Cerberus Capital Management LP for $7.4 billion. • Daimler retains a 19.9 percent stake which it said on Tuesday it still wanted to sell. It has been in talks with Cerberus about the stake. • In October, Chrysler held merger talks with GM. • Chrysler has taken $4 billion from the U.S. government as a loan to help it cope with the current global crisis and has also received $1.5 billion for its finance arm. Source: Reuters research, company Web sites

New Volvo S60

Concept car previewing 2010 S60 saloon replacement

Volvo has revealed pictures of its S60 saloon concept. The car which will appear at the January 2009 Detroit motor show and give major hints as to what to expect from the 2010 S60, which is only the second version of the saloon - the outgoing car will be a decade old by the time it is superceded.

It has remained on sale virtually unchanged thanks to its well proportioned looks but also due to Volvo pushing funds towards developing a more expansive range - including a new S40, V70, the C30 hatchback/coupe and the all-new XC60 SUV. The bigger XC90 will also be over ten years old by the time it is replaced as the brand concentrates on developing the new S60.

If it looks anything like this concept, Volvo will be onto a winner. Although the suicide rear doors are destined to be lost, the four-door coupe looks, in the same vein as the VW Passat CC, would be sure to stand out alongside more traditional saloon rivals such as the BMW 3-series and Audi A4.

The lines that sweep from the headlights to the back of the car are inspired by Swedish coastlines, apparently, while Volvo says the car will deliver a sporty drive like no other Volvo before. Fingers crossed...

Mid-engined Jaguar flagship on the way

Big Cat reveals shock plans for a stunning rival to Audi's R8 – and Auto Express has the low-down!

Auto Express has learnt that Jaguar is working on an all-new, mid-engined coupe which is set to make its public debut in just 12 months time.

Aimed at the likes of the Audi R8, the top-secret machine has apparently beaten the long awaited F-Type in the race to be the first new sportscar launched by the company since its acquisition by Indian conglomerate, Tata. It revives plans for a flagship sports car, which were first revealead way back in 2001 with the R-Coupe (pictured).

Based on the current XK, the newcomer will also be the first mid-engined model from the Coventry car builder since the XJ220…launched 18 years ago in 1991.

Tipped to be called the XE, it will first appear as a concept, possibly at the Geneva Motor Show in 2010. Set to combine a dramatic silouhette with an imposing nose, the model is expected to be the most forward looking model the firm has yet produced.

Under the bonnet, the car is likely to use a tuned version of the XF-R's 503bhp 5.0-litre supercharged V8 engine. Jaguar’s managing director Mike O’Driscoll said: “XK is the car that began a revolution for us, but it’s not the end of the story. I firmly believe the best car we could build to compliment this is a flagship coupé.”

For the full story, make sure you buy next week's issue of Auto Express, out January 21st.

Honda S2000

Honda postpones roadster replacement but boosts current car

Not long after ditching its F1 team and canceling the new NSX supercar, Honda has called time on several more of its less mainstream models. A convertible version of the CR-Z hybrid is no more, while Acura badged rivals for the BMW 3, 5 and 7-series could be cancelled too. The biggest loss for us though is the S2000 roadster, which is set to cease production this year with no new model or replacement to step into its shoes.

In the meantime, though, Honda is gracing the Tokyo Auto Salon with a bunch of Sports Modulo concepts. Essentially tweaked and body kitted versions of its existing range (its Japanese Domestic Market ones, at that) it is nonetheless a brighter bit of news from Japan.

The S2000 Sports Modulo (main picture) gets a neat exterior bodykit, some funkier lights (including the obligitory LEDs) and a luxury brown leather and carbon fibre-clad interior. No news on if there's any performance tweaks to the standard car's 237bhp 2-litre yet.

Among the other models gaining Sports Modulo attention are the JDM Civic Type-R (our preferred flavour of hot Honda) which is pictured here in Championship White while the Jazz supermini (the amusingly named Fit in the Far East) has been Tangoed inside and out for the Tokyo show. Again, no word on performance or whether any of the tweaks will filter down to production Hondas, but we'd advise crossing your fingers.

Daimler denies interest in acquiring Volvo

wDaimler has no interest in acquiring Ford Motor unit Volvo, a Daimler spokesman said on Saturday following a magazine report that the German carmaker had examined its Swedish rival.

"We were never interested in Volvo," the spokesman said.

German weekly magazine Der Spiegel reported on Saturday that Daimler had carefully looked at a possible deal in recent weeks but had rejected the idea.
Der Spiegel cited no sources for its report, which was released ahead of publication on Monday.

Ford is considering strategic options for the Volvo brand and expects a lot of interest, Ford CEO Alan Mulally said last month.

Volvo has been put up for sale by Ford, which along with its rivals General Motors Corp and Chrysler is trying to survive a deep downturn in U.S. vehicle demand.

A Chinese newspaper last month named Ford's China partner Changan Automobile Group as a potential buyer for Volvo. Ford declined to comment on the report.

Ford and Mazda Motor Corp operate a car venture with Changan's listed arm, Chongqing Changan Automobile, which makes mid-sized Focus sedans and Volvo S40s, among other brands.

Sweden has said it will provide up to 25 billion crowns ($3.20 billion) in credit guarantees and emergency loans to its ailing auto industry but has no plans to buy stakes in Volvo or GM unit Saab.

Porsche raises stake in VW to over 50%

Germany's Porsche Automobil Holding has raised its stake in Volkswagen to more than 50 percent, triggering a mandatory takeover offer for Sweden's Scania as a result.

Porsche's purchase of further ordinary shares in Volkswagen means it now holds a 50.76 percent stake, Porsche said on Monday. It held 42.6 percent previously.

The additional stake of 8.16 percent was worth about 6.1 billion euros ($8.49 billion) on the stock market on Monday, according to Reuters calculations, considering that Volkswagen shares closed at 254.74 euros, down 1.7 percent.

Porsche had initially planned to raise its stake above 50 percent by the end of last year, but a massive short squeeze in late October briefly made VW the world's most valuable company, when its share price rocketed to just over 1,000 euros from 210 euros in two trading sessions.

Porsche's Chief Financial Officer Holger Haerter hence said in November it was "increasingly unlikely" that Porsche would take majority control by the end of December, but added he expected to do so by early 2009 at the latest.

A Porsche spokesman confirmed that the sports car maker still planned to increase its stake in VW to 75 percent at some point this year, given a favorable market environment.

As a result of its stake hike on Monday, Porsche now has indirect control of Swedish truck maker Scania, in which Volkswagen holds about 69 percent of the voting rights.

Porsche is required by Swedish law to make a mandatory takeover offer, but the German sports car maker said it had no strategic interest in Scania and was not interested in acquiring Scania shares.

It said it was not bound by pre-acquisition prices and was only obliged to offer the minimum price prescribed by law.

In December, German industrial conglomerate MAN underscored its long-term strategic interest in Scania, saying it had bought call options on Scania's stock, giving it access to more than 20 percent of Scania's voting rights.

The deal marked another step toward a three-way truck deal that analysts expect to emerge among MAN, Volkswagen and Scania.

Volkswagen is the biggest shareholder in both MAN and Scania.