Mercedes-Benz is considering building its new GLK compact SUV in the U.S. to take advantage of the low dollar and the vehicle’s expected popularity in the North American market. Despite the decline in the popularity of SUV models, the U.S. is expected to remain the single biggest market for the GLK and it has been revealed that production of the SUV could come Stateside.
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Following from last week’s rushed announcement for an extension of the existing employee discount program to friends and extended family of employees, General Motors has released a new memo to its dealers stating that it plans to offer a $4,000 bonus cash on the purchase of the 2008 GMC Yukon and Yukon XL, including the hybrid model, and an additional $2,000 of customer cash for the 2008 Yukon Hybrid – making a maximum discount of $6,000. Customers also buying the 2008 GMC Envoy SUV will also be entitled for the $6,000 saving.
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Update: Mitsubishi has announced pricing for its new 2009 Lancer Ralliart turbocharged AWD sedan, putting it in direct competition with the similar priced and specced Subaru WRX. Positioned between the Lancer 2.4 GTS and high-performance Lancer Evolution X, the new Lancer Ralliart comes with a 237hp (177kW) turbocharged four-cylinder - a detuned version of the same 4B11 found in the Evo X - and the same trick TC-SST dual-clutch gearbox. Pricing starts at $26,490.
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Soaring demand for compact and fuel-efficient vehicles in the U.S. has seen sales of the diminutive Smart ForTwo outstrip expectations, causing its distributor, Penske Automotive Group, to increase forecasts for 2008 sales. Original estimates for the ForTwo were pegged at just 20,000 units for the year when the car went on sale back in January. However, Penske has now revised that figure to between 24,000 and 27,500.
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Demand for the Toyota Prius in the U.S. is so high that most new models sit on dealer lots for an average of just five days, and waiting lists of or more than three months are becoming more and more common. Toyota is struggling to keep up with demand, and has started construction of several new plants in Japan to supply more nickel-metal hydride batteries for its hybrid vehicles.
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Updated with new images.

MTM is not known for its restraint - it is, after all, the same company that fitted two engines into an Audi TT to set a speed record at Nardo. Its engineers have now taken the tuner’s brand of high-power, no-holds-barred modification to the internal workings of the new Audi RS6 Avant, already one of the most powerful production cars on the planet, and managing to boost output to even more extreme highs.
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Saab is set to present a new offroad version of its compact 9-3 model, dubbed the 9-3X, at this year’s Paris Motor Show but according to latest reports the car could be joined by a concept version of the next-generation model. The new show car will be the third concept car from the Swedish carmaker, and once again its styling will be influenced by the original 2006 Saab Aero X concept (pictured), although it will feature a convertible body.
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Update: Yesterday reports emerged claiming Chrysler was in talks with Tata and Fiat over a deal to sell its Jeep Wrangler SUV in India and other parts of Asia. Latest reports indicate that Chrysler is still in talks with Nissan, and is even considering building a new pickup truck for the Japanese carmaker at a plant in North America.
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Carbon-fiber is seen by many in the auto industry as one of the most effective ways of reducing vehicle weight and improving fuel economy and emissions levels, but the relative expense of the material means that it’s still reserved for only a handful of high-end production cars. BMW has effectively used carbon-fiber roofs for its M cars to help lower their center of gravity, and Nissan and General Motors have used the composite material to help save weight for the GT-R and ZR1 supercars.
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General Motors is expected to announce heavy second-quarter losses tomorrow along with a new round of job cuts planned for North America. This time the cuts will effect salary workers, with latest reports indicating that up to 5,000 jobs, or about 15% of GM’s North American white-collar work force, will be cut as the carmaker attempts to restructure its business.
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Michael Schumacher’s spokeswoman has confirmed the retired seven time world champion was involved in a road accident in England.

A car dealer in Kent, a county in southeast England, told the Mirror newspaper that he was struck as a pedestrian on Sunday by a modest Fiat Ducato van - which had the former Ferrari racer at the wheel.

The dealer said Schumacher, who was on his way to a private jet at a nearby airfield, was overtaking a slower vehicle at the time.
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The 2009 Subaru Impreza WRX has had its internals and exterior tinkered with resulting in a performance upgrade from its predecessor. A 265hp (198kW) turbocharged intercooled boxer engine provides the grunt, while a retuned suspension system and wider, lower-profile summer performance tires improve the handling and ride.
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Following the call by Michigan members of congress for the government to support a multi-billion dollar aid package for the auto industry, Senate Democrats have approved a $6 billion package to secure low-interest loans for the Detroit Three.

The package will be financed by Congress for $900 million, in order to guarantee the $6 billion in loans, and Congress may consider further stimulus packages later this year.

If the entire $25 billion package were to be approved it would cost Congress a total of $3.75 billion - which will provide $25 billion in loan guarantees for auto makers who are retooling plants in order to respond to strict new government CAFE standards and changing consumer demand.

In addition to the $6 billion loan guarantee package, Senate Democrats have also agreed to put up $300 million in funding for research into an advanced battery.
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With its industry-leading hybrid program pushing it forward, Toyota has claimed the top spot in the annual CAFE fuel efficiency ratings in the U.S. The result confirms the company’s fuel-efficient image as legitimate, though both Honda and Hyundai trailed within just a few tenths of a mile per gallon in the final tally.
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Updated: General Motors announced today that it would stay in the leasing business through August at the least. The obvious implication is that the company, via its GMAC finance corporation, is considering getting out of the leasing business, much as Chrysler has done.

Ford’s choice to simply revalue the residuals in its leases effectively takes it out of the market as well, with the price rising enough to make buying a preferable alternative.

In addition to remaining in the lease business, GM will also continue to offer cash incentives, competitive interest rates and a variety of lease terms for ‘most’ 2008 and 2009 models, reports The Detroit News.
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