Group Lotus, with the help of its parent company Proton Holdings, plans to implement some massive changes to fully utilise the synergies between the two companies. Proton plans to introduce a new division to be staffed by people from both companies in attempt to turnaround the financial status of Group Lotus over the next five years.

Plans include introduction of a new lightweight sports car similar in ethos to cars like the Elise and Exige, and increased production of vehicles wearing the Lotus badge. Lotus has always been a very innovative company, using its expertise in engine and chassis engineering to co-develop new vehicles with the Nanjing Automobile owned MG Rover. They’ve also recently won a deal to build American company Tesla Motors’ awesome electric roadster.

We can expect to see a whole new range of cars in the near future with the superb handling dynamics that Lotus is renowned for.

Pictured above is the new Lotus Europa, a more practical sportscar that’s easier to live with on a day-to-day basis.

We reported earlier that Audi was planning to release an entire range of new RS tuned vehicles. We can now take a look at some of the cars the new performance range will be based on thanks to these images from WorldCarFans. Considering the success Mercedes Benz has had with its sexy CLS coupe and the legion of fans BMW has with its 3-series coupes, it was only a matter of time before Audi released its own iteration of the classic coupe design.

The new Audi models will include the A5, a coupe version of the A4 sedan to be based on the next-generation A4 platform due at the end of 2008. There will possibly be a Sportback variant of the A5 car as well, to enter the burgeoning crossover market. Audi is so confident on the crossover market taking off that there are even rumours there might be Sportback version of the A8. Then there will be a new A7 to compete with the likes of the CLS and upcoming Porsche Panamera. The A7 will be a four door sedan with a coupe styled roofline. For the traditional SUV market, Audi is developing a mid-sized Q5 model and perhaps even a smaller Q3 model to be based on the A3 platform.

In the sports car division, Audi has confirmed production of its R8 supercar which will share its underpinnings with the Lamborghini Gallardo. The Gallardo’s 5.0-litre V10 will be slightly detuned to 450bhp (336kW) and a V8 engine may also be on the cards. Pricing should be inline with the Porsche 911 and Aston Martin Vantage. Other cars include the new S3 and roadster versions of the TT captured in our previous spy shots posts.

[Source: WorldCarFans]

This is an image of what the new Audi S3 will look like. Not surprisingly, there’s little difference to the spy shots that were published several weeks ago. The car will be launched later this year as a three-door only model. The more aggressive grill and S badges give it away immediately as a performance model, but in true Audi form, styling remains subtle.

The car is to share the same 2.0-litre TFSI direct-injection four-cylinder engine from the Golf GTi but with 272bhp (203kW) and driven through all four wheels. This won’t be a Quattro model though, like the engine, the AWD system is to be shared again with the Golf GTi. Rumour has it that Audi is planning a V6 version developing more than 300 bhp (224kW) and to wear the potent RS badge.

[Source: Autoblog.it]

Click here for some larger images.
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In terms of bodywork modifications, this jewel encrusted SL500 is probably as excessive as they come. No doubt the creation of some eccentric Arab Sheik or Russian mafia boss, this SL in concept strikes us as shocking and gaudy, but in the metal, so to speak, actually looks kinda appealing. This car has been shown before, but we couldn’t resist these high-res images taken in Japan.

Complete with fully modified interior with plush seating and jewel-lined instruments, the SL500 just goes to show how fanatical some car fans are. It also shows that there are some people with way too much time and money on their hands. There’s just one thing we can’t quite grasp - why isn’t this a SL55? Surely a real pimp would be able to afford one….

[Source: Nihon Car & Bike]

Click here to see some larger images courtesy of Nihon Car & Bike.
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Update: Official images of the VW Iroc have been released. You can view them here.

Recently there were computer renderings of Volkswagen’s Scirocco coupe concept circulating round the net. Now it seems that VW may actually display a concept model at this years’ Paris Motor Show, but instead of Scirocco, the new concept will be called the IROC. Styling will be heavily influenced by the earlier, Eco-Racer and Concept A models. Expect the car to be a front-wheel drive sports coupe with a possible GTi badge thrown in the works.

Apparently the car has been given the green light and production is set to start at VW’s Portugal facility late in 2007. Currently the car is to be a Europe only model but the IROC could make an appearance in the lucrative US market should the demand exist. Maybe it needs a new name as well.

[Source: VWVortex]

Click more to see images of VW’s Scirocco and Concept A prototypes.
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These days, spending more than $50,000 on a luxury vehicle doesn’t even ensure that you’re buying something that’s reliable. In fact you could be buying a car that rates lower in terms of overall quality than a humble Corolla. Unfortunately that’s the case with some cars as identified in a J.D. Power and Associates survey on quality.

Some of the faults found in luxury vehicles are problems that are unacceptable by today’s standards. In fact, some issues were unacceptable back in the 80’s. Faults included components that stop working or trim pieces that break or come loose. The biggest culprit seems to be the increased use of electrical components which are prone to faults.

The people over at Forbes.com have put together a list of some of the least reliable cars of 2006. The list includes two Land Rover SUVs, a Lincoln, a Saab and a Volkswagen Touareg.

What doesn’t come as a complete surprise is that four of the vehicles listed as the Least Reliable Luxury Cars of 2006 are SUVs – the former cash cows of the automakers. Why is it that car makers slack off so much when building SUVs? Perhaps they’re making an assumption about the types of people who buy these kinds of vehicles.

[Source: Forbes.com]

Who will win in this challenge between two of the fastest German supercars?

We will soon be able to drive cars that will know if we’ve had a rough day or a car that can tell if we’re about to fall asleep behind the wheel. That’s the premise of a new technology being developed by scientist Peter Robinson at the University of Cambridge. Though the idea seems rather far-fetched, it seems that a Japanese automaker has been in contact with the professor with plans to introduce this technology into their future models.

Such features include a system that reacts according to the driver’s mood. For example, if the driver is feeling sleepy, a camera built-in to the dashboard would pick this up and ring a warning bell. Or if the driver was in a bad mood, the car could sense their feeling and react by playing some ambient sounds. Toyota is just one manufacturer that is serious about introducing such technologies. Their prototype Pod car would change colour based on how you feel.

Another interesting concept is a car that displays the driver’s mood externally. For example, if the driver’s angry because someone cut them off, the car’s lights can angle upwards to form an angry face while the front of the car gives off a red glow to complete the menacing look. The technology is at least five years away but in terms of a safety aspect we’re sure we’ll see this in cars in the not too distant future.

[Source: TechnoRide]

Click here to see more images of Toyota’s crazy Pod car.
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These are the first renderings of BMW’s upcoming 3-series cabriolet with a retractable hard top. Previous BMW cabrios have had soft-top covers, but competition from Volvo in the form of the new C70 may have spurred them to change.

According to TopSpeed, the cabrio will share most of its mechanicals with the 3-coupe and will have the same wheelbase length, which has enough space to seat four people. Most of the engine range will be the same, but there will be a new 3L model with 272hp (200kW) and better economy. It’s expected to hit the streets in March next year, with a M3 version following in 2008.

Check out TopSpeed for higher-res versions of these images.

When we first saw images of the Glickenhaus Ferrari, we weren’t as excited as we thought we’d be. However, with more and more images cropping up, this Pininfarina designed beauty is really starting to grow on us.

Though nothing can replace the pure athleticism and rawness of the Enzo, on which it’s based, the 612 P4/5 does have an allure of its own. After the jump are some high-res images of the car undergoing testing and actual construction at the Pininfarina workshop.

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Audi is about to embark on an all-out performance onslaught with the release of an entire range of new RS models. RS is Audi’s performance arm, similar to the M division of BMW. Manufactured by Audi’s quattro GmbH subsidiary, the RS series of vehicles are some of the fastest performance saloons on the market. The previous RS6, based on the A6 was faster than its rival, the E39 M5 and the current RS4 is sure to be a serious threat to the new V8 M3.

The next wave of RS models that are planned include an RS3, RS5 (based on the new A5 coupe), RS6 and possible even a TTRS. At the top of Audi’s performance hierarchy will by the R8 supercar. It’s going to be interesting to watch the power struggle amongst the German automakers unfold – we can’t wait.

More images after the jump.
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We’ve been very impressed with Fiat’s latest models, especially their small Punto hatch. It’s little wonder that the Italian marque is now making some serious profits. Only 18 months ago the carmaker was struggling with losses of $12 billion dollars over the past six years.

Restructuring and a rekindled spark in design has seen revenues jump 21% to $14.8 billion for the first half of 2006. Now that there’s cash in the bank, we can expect a rush of new vehicles. After the amazing success of the Punto, Fiat is preparing to launch its successor to the Stilo compact for 2007. Expect it to go head-to-head with the Volkswagen Golf. There might even be a giant killing GTI version.

What we’re really looking forward to is what Fiat can do with their legendary Lancia brand. Cars will be styled by one of the famed Italian design-houses such as Pininfarina, Bertone, and Giugiaro. Expect some seriously gorgeous vehicles.

Two brothers from a town east of Beijing have fulfilled their dream of building their very own personal Forumla One car. The car was constructed from scrap metal, but from the images, we think these guys have done a pretty good job. The idea was to build the first F1 car in China.

The two brothers, ZHAO XIUGUO and ZHAO XIUSHUN, built the car to commemorate the 30th anniversary Tangshan earthquake in 1976, the province in which they live. They were quoted as saying “Everybody has his own dream though. I just love (building Formula 1 cars), and I am crazy about it.”

Performance wise the car is no match for Schumacher’s, but the car is fully road legal.

More images after the jump.

Images: Reuters

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Hairdressers will soon have their new dream auto. Seen here cold weather testing is the cabriolet version of the new Audi TT. From the images it’s clear that Audi will forgo the folding metal roof and stick with a cheaper and lighter electric soft-top. Due to the space needed for the roof when it’s down, the convertible version of the TT will be a strict two seater. It’s also likely that some boot space will be required as well.

Powerplants will be the same as those featured in the new coupe, so expect the 2.0-litre turbo and 3.2-litre V6 petrol engines with either front-wheel drive or the Quattro AWD. The cabriolet will also feature Audi’s excellent DSG transmission, dubbed S-tronic. New to the TT range will be a performance variant known as the TT-S. This new car will have the numbers to rival cars like the BMW M Roadster and Mercedes-Benz SLK55. Maybe we should become hairdressers too.

In related news, Audi won’t outsource construction of its new A5 convertible, but will build it in-house instead for release in 2008. The new car will replace the A4 softtop which is currently manufactured by Germany’s Karmann.

While the Prius gets most of the limelight for being economical thanks to its legions of Hollywood fans, Volkswagen’s Polo Blue Motion costs just under $20,000 but manages to get a mpg rating of 72, and a range of over 700 miles.

The Blue Motion is a slightly modified version of the Polo 1.4TDI, which uses a 3-cylinder turbodiesel engine developing 80hp (60kW). VW has optimised the 5sp gearbox, improved the aerodynamics, and fitted 14-inch low resistance tyres to achieve the remarkable economy figures. Normally this would be cheating, but the fact that this car is going on sale shows VW is serious about high economy small cars.