General Motors’ UK subsidiary, Vauxhall, has announced the arrival of its flagship model, the VXR8.

The new saloon, which is based on the Australian Holden model, is priced at £34,995. It is powered by the same 6.0-litre V8 as the outgoing Monaro VXR, which it replaces, but the engine has been revamped to make it significantly more efficient.

It now develops 420PS and 550Nm of torque, allowing it to accelerate from 0-60mph in a mere 4.9 seconds. The VXR8 will also be the first VXR model to be offered with an automatic gearbox at a cost of £1,400. A manual override ensures optimum control and a sports setting makes sure that performance isn’t compromised.

The model features leather upholstery. Climate, traction and stability controls are fitted, while satellite navigation and 20-inch wheels are offered as optional extras.

The VXR8 should be available in the summer.

Subaru (UK) Limited, the all-wheel drive specialist, has opened a new a £10m corporate headquarters in Coleshill, West Midlands.

The building, which is located near Birmingham Airport was officially opened by Mr Tomohiko Ikeda, Corporate Vice President and Chief General Manager, Subaru Overseas and Marketing Division.

Around 70 staff are already based in Coleshill with a further 30 due for transfer by the end of March. Approximately 70 employees will remain at the company’s site in West Bromwich.

Subaru (UK) Limited, which started importing the Japanese brand to the UK in 1977, is planning to launch several new models in 2007 and 2008.

The company will reveal its first diesel engine at the Geneva Motor Shown in March.

The ‘boxer’ is the world’s first horizontally-opposed turbo diesel engine. According to Subaru it gives exceptional refinement and smoothness, with low levels of noise and vibration.

The boxer engines are more compact than in-line units and provide a lower centre-of-gravity, enabling superior handling and safer cornering.

The first Subaru to feature the new boxer engine will be available early in 2008.

Huge changes are on the horizon for Chrysler, including a split from Daimler, a possible takeover and major restructuring plans.

The company’s sales have slipped alongside the decline in popularity of SUV’s and trucks and a move towards more fuel-efficient vehicles.

Chrysler is working with its investment bank, JP Morgan Chase, to develop a prospectus for potential suitors, which at the moment are believed to include four private-equity firms - Apollo Management LP, the Blackstone Group, the Carlyle Group and Cerberus Capital Management LP - plus General Motors Corp.

In a telephone conference call with dealers, Chrysler Chief Executive Tom LaSorda, said that parent company, DaimlerChrysler AG, has endorsed Chrysler’s restructuring strategy which is expected to return the company to profitability by 2008. Chrysler lost $1.475 billion in 2006.

Chrysler’s efforts to reduce costs are expected to include the loss of 13,000 jobs representing 16% of its global workforce, the closure of its plant in Newark, USA, and shift reductions at others.

Volkswagen AG, Renault-Nissan and Hyundai Motor Co. have all said that they would not be interested in acquiring Chrysler.

BMW has added a new specification to the 3 series Coupe © and Convertible ranges: the M sport.

The M Sport is offered on all engine models, and includes a more comprehensive selection of equipment as compared to the SE standard editions.

Aerodynamic body styling comes with a 15mm lower sport suspension gives the car a sportier look and feel. An additional 19 inch double spoke alloy option and high-gloss shadow line around the windows complete the more distinctive look.

Blue shadow Alcantara cloth is upholstered upon the seats with anthracite headlining, leather steering wheel and brushed aluminium completes the interior.

The M Sport options in BMW’s other ranges have also been particularly popular, and BMW no doubt hopes that the 3 series Coupé and Convertible ranges will be no different.

As the extension of the London congestion charge zone is extended tomorrow, Honda expect this to push sales of greener hybrid cars in the capital.

Sales already show the percentage of hybrid cars in London rose over 2005-2006 from 1% to 2%.

Honda are predicting that an additional 6,500 hybrid fuel models will be sold in London alone over the next 2 years.

Although many people think of hybrid cars as essentially exotic, Honda has now sold over 185,000 worldwide.

Of its UK sales, a third are purchased from people living in London and the South East of England - and Honda believe that congestion charges on traditional pertrol and diesel cars are the reason for this.

It’s not just consumers who are buying them - the Metropolitan police has already ordered 177 hybrid fuel Honda Civics, and national corporations are ushering them in.

In the meantime, Honda are building a sports car to extend its market reach beyond the traditional saloon style.

Concerns have been raised about the future of the Daimler Chrysler relationship, after the Chrysler division shed more than 13,000 jobs on Valentine’s Day.

Dubbed a second “Valentine Day’s Massacre” by local workers unions in Michigan, in reference to an infamous 1920’s mob shooting, the massive job cuts come as Chrysler struggles with a $1.4 billion debt.

It’s news that continues to hit Michigan hard, the home os US car manufacturing. A general decline in traditional car sales have seen all the major US car makers struggling. Ford and General Motors are already shedding around 70,000 jobs them and closing a string of production plants.

It also raises questions about the overall strength of Daimler’s relationship with Chrysler. Daimler, the German division, can only be expected to help buoy their US counterpart for so long.

Meanwhile, Chrysler continues to restructure the company, apparently known as Plan X within the company.

The question remains as to how much time is required before serious questions about the relationship translate into serious actions that could sever it.