The Trade and Industry Committee of the House of Commons has published a new report into Britain’s car industry which urges companies and government to increase research and development to help protect jobs.

UK car production fell 10% in 2006 / 07, with a number of high-profile companies closing UK plants, including MG Rover and Ford’s Jaguar unit.

There is a trend for manufacturers to move production to countries where costs are lower. TVR Engineering Ltd., General Motors Corp.’s Vauxhall Motors Ltd. and PSA Peugeot Citroen are all scaling down UK production.

Part of the problem is overregulation, with European Union rules adding 5,000 euros to the average cost of a car made in Britain.

The report advises the industry that it will not be able to compete on the basis of low-cost and advise it to focus on high added-value processes and products which make the most of the UK’s strength in automotive design and innovation and its supply of skilled labour.

It suggests that the industry should adopt lean manufacturing techniques using modern equipment where it is feasible to upgrade facilities, and to strengthen the local supply chain.

Nanjing Automobile Group Corp. has unveiled the first MG cars to be made in China.

The company introduced the 1.8-litre MG TF roadster, and the MG 7295 and MG 7275 sedans, at its plant near eastern Nanjing city today.

The brand, which has been renamed `Ming Jue’ or `Modern Gentleman’, will be available in China in the second half of the year.

Nanjing Auto plans to use the brand as a platform to expand globally, as part of a strategy to offset increasing competition, which is squeezing profit margins in China. The auto market in China is the second largest in the world - it overtook Japan in 2006, with sales of 7.22 million cars.

Nanjing Auto plans to invest $2 billion in the MG brand and launch new plants in the UK and US. The company acquired MG in 2005 for $97 million after the collapse of the UK based MG Rover Group.

It plans to manufacture MG TF roadster convertibles at the former MG factory in Longbridge, where it will also open a new research centre.

The company, which can build up to 200,000 cars a year at its Nanjing plant, aims to export up to 60% of the MGs it produces.

Subaru revealed its R1e electric city car at the Geneva Motor show this month and the possibility of a UK launch is currently being evaluated.

If the project receives approval the R1e could find its way onto British roads within 12 months.

The Subaru R1e is an all-electric version of the Japanese market R1 “K-car”.

Subaru’s parent company, Fuji Heavy Industries, won Japan’s 2006 Commendation For Global Warming Prevention Activity award, for the production of the R1e, which was developed in conjunction with the Tokyo Electric Power Company.

The model has two doors, a 50-mile range when fully-charged and a top speed of 62mph. A high-speed charger is included, which charges the on-board lithium-ion battery to 80% capacity in just 15 minutes. The life of the batteries is estimated at over 10 years, or 124,000 miles.

As the car emits zero emissions it would be exempt from city congestion charges, making it ideal for use in urban areas.

The R1e will be built in Japan in right-hand-drive form only, increasing the likelihood of a UK release.

The first UK Hummer showroom has opened in Manchester, with others scheduled to open in 2007, but the brand is likely to receive a mixed reception.

In the US, Hummer has become one of the fastest growing companies - no doubt helped by the low price of fuel which is as low as $2 a gallon in some part of the USA.

The new H3 Hummers, which are destined for the European market from GM’s production facility in South Africa, make some concessions to higher fuel costs.

The model is powered by a 3.7litre, five-cylinder engine, which will manage as much as 20.5mpg on a good run. The model is also significantly smaller than the Hummer H2, and is also lower and narrower in order to suit smaller European road.

Off-road prowess has not been compromised though - the four-wheel drive system includes traction control, an optional locking rear differential and StabiliTrak stability control as standard.

GM is confident that the brand will achieve success in the UK, pointing out that the H3 meets all the emissions standards in the world, but its launch at a time when the chancellor is bumping up tax on ‘gas-guzzlers’ is bound to be controversial.

The first H3 models will be available in the UK this summer.

Russian car manufacturer AvtoVAS launched the Lada C Concept at the Geneva Motor show, but could the brand shake off its bad reputation if it came to the UK?

The C-Segment three-door hot hatch announced in Geneva, features a 2.0L four-cylinder petrol engine, model, giving it plenty of power.

AvtoVAZ collaborated with contract manufacturer MagnaSteyr on the C Concept, with AvtoVAZ designing the model and MagnaSteyr bringing the vehicles’s mechanicals right up to date and in line with European safety and emissions standards.

The show car’s new platform will form the basis for a family of cars to suit most uses, including a five-door hatch, a sedan, a compact MPV and an SUV crossover vehicle.

AvtoVAS has plans for a major export operation which could see new Lada models on European and perhaps UK roads in the not too distant future.

The vehicles will be built at a new plant being established on AvtoVAZ’s plant in Togliattigrad, which will be managed by MagnaSteyr.

Lada already produces around 700,000 cars a year in Russia, some of which are exported to left-hand drive markets in Europe and also has a joint venture with General Motors, building a version of the Chevrolet Captiva.

An architecture student from the University College for the Creative Arts in South East England, has impressed judges at the Design Council with his innovative automotive design.

James Williams won the Creative Innovation Award, a joint project between Kia Motors (UK) Ltd and the college, which aims to promote home grown design talent in the car industry.

The competition asked second-year BA students to design vehicles that could form part of a sustainable transport network.

James’s affordable and adaptable design was based on interchangeable panels. He impressed the judges with his knowledge of the production process and his enthusiasm.

James wins £1,000 and a fully funded summer placement within Kia’s new European research and development centre in Frankfurt, where he will work with leading designer Peter Schreyer, who designed Audi and Volkswagen models before joining Kia last September.

Kia and the University College for the Arts will announce details of the 2007 challenge later this year.

Renault has confirmed that its new Twingo model will be available in the UK from September.

Although the Twingo has been popular in Europe since 1993, it has never before been available in the UK, because of the costs associated with converting it to right hand drive.

The company unveiled the model at the Geneva Motor Show. It has been restyled with features that will appeal to younger drivers, such as iPod connectivity and Bluetooth hands-free telephone controls. It is also customisable with a range of transfers.

The three-door only car will have four independently sliding seats to make the maximum use of space and will also have ample storage space.

Two versions of the car will be launched - the Twingo Dynamique will feature a 1.2-litre, 16-valve, 75 hp petrol engine, while the GT version includes Renault’s new TCE (Turbo Control Efficiency) 1.2-litre, 100 hp petrol engine as used in the Clio and Modus.

The Twingo is expected to sell for around £8,500, although lower-specification versions will be available in other European markets and are expected to be introduced to Britain later, priced at around £7,000.

A Renaultsport variant is expected in summer 2008, with a tuned version of the GT’s turbo.

Aston Martin has announced that it has been sold by Ford Motor Co to a UK-led consortium for £470m.

The luxury car manufacturer was founded in the UK in 1913 by Lionel Martin and Robert Bamford, but passed into US hands in 1975. Ford Motor Co took a 75% stake in the company in 1987 and took full control in 1994. It put the company up for sale six months ago in order to raise funds. In 2006 Ford recorded a loss of $12.7bn.

Aston Martin has now been sold to a consortium headed by Dave Richards of Prodrive, the motor sport and engineering group that runs Aston Martin’s racing team. Mr Richards made his investment in a personal capacity.

The consortium also includes John Sinders, a banker in finance and shipping who collects Aston Martins and two Kuwaiti investment companies - Investment Dar and Adeem Investment. Ford is retaining a £40m stake in the company.

Aston Martin will remain at its headquarters in Gaydon, Warwickshire, where 1,800 people are employed and the acquisition is expected to provide additional capital to help with the firm’s growth.

The sale is expected to close during the second quarter of this year.

Fiat launched the new C-segment Bravo hatchback at the Geneva motor show and the model will be available in UK showrooms in July.

The model is powered with two new T-jet petrol engines with outputs of 120bhp and 150bhp, making the car economical to run and providing high efficiency and output. The engines comply with Euro-IV emissions standards and a Euro-V version is being developed.

The new Fiat Bravo has been awarded a five star Euro NCAP crash safety rating, placing it near the top of its category for safety.

Safety features include two front airbags with a two-stage bag for the driver, two front side bags, two window bags and a knee airbag for the driver. There are also three-point seat belts with pretensioners and load limiters, five head-restraints, and Fiat’s FPS fire prevention system.

The bodyshell, seats and steering column have all been designed with safety in mind and the car has the latest generation electronic braking and traction control systems to ensure safe dynamic performance.

Fiat expects to sell around 4,000 of the cars by the end of the year. The company developed the model in partnership with leading supplier MagnaSteyr.

According to the Daily Telegraph, Ford Motor Co will sell its Aston Martin division by the end of the week.

The details of the deal are being finalised and it should be signed on Friday in Detroit.

The ownership of the luxury car division will then pass to a consortium headed by David Richards, the founder of Prodrive which runs Aston Martin’s works racing team. The consortium also includes Egypt’s Naeem investment bank.

The Prodrive consortium secured the acquisition in an auction run by investment bank UBS AG. Second-round bidders also included UK buyout firm Doughty Hanson, and Syrian-born property tycoon Simon Halabi.

The price of the transaction is rumoured to be around £500m.