A hybrid version of the Mercedes-Benz S-Class looks set to be revealed later this year.

A 3.5 litre V6 engine combined with an electric motor will produce 300 bhp, with a fuel economy of 35 miles per gallon. It will reach 60mph in 7.5 seconds and is expected to cost around  £70,000.Meanwhile a diesel version will be powered by a 2.2 litre four cylinder engine and Mercedes’ Bluetec technology. It is reported to be capable of returning 40 miles per gallon. The award winning Bluetec system significantly reduces the nitrogen oxide emissions of diesel engines and will allow the cars to comply with all upcoming European emissions standards. Lexus recently produced a hybrid model in the shape of the LS600h and the S-Class is intended to rival it in the luxury hybrid market. Both versions are expected to be unveiled at the Frankfurt Auto Show this September, eventually arriving as 2009 models.

Vauxhall is to release an SRi edition of the Corsa in September.The model will be available in three-door and five-door versions and is expected to cost around £13,500 with a petrol engine or £14,200 for the diesel edition. The 1.6 litre petrol engine will produce 148bhp, taking the Corsa SRi to 60mph in 7.6 seconds, with a top speed of 130mph. The diesel version will feature a 1.7 litre engine and will have a top speed of 121mph, reaching 60mph in 9.3 seconds.

Vauxhall has made the car sportier by lowering the chassis and adding front and tailgate spoilers. Other additions include 17 inch alloy wheels, chrome sports exhaust pipe and sports seats.Orders will be taken from June 23. Meanwhile Vauxhall are offering incentives for customers who scrap their ‘old bangers’ in exchange for their most fuel-efficient models. £1000 will be offered in order to reduce the number of heavily polluting vehicles on the roads. 

The low emissions cars included in the scheme are the Corsa 1.0 and 1.3 CDTi, Meriva 1.4 and 1.3 CDTi, Astra 1.4 and 1.3 CDTi, and Zafira 1.6 and 1.9 CDTi 120bhp.

Honda has announced that it plans to offer a greater range of hybrid fuel cars to the UK over the next two years.

The hybrid cars will initially utilise FCX fuel cells, with plans to manufacturer and distribute over 200,000 hybrid vehicles across the world by 2009.

Although fuel cells are generally regarded as uneconomical, Honda intends to apply a range of technologies and energy management systems to additionally improve the effectiveness of the vehicles.

They are already implementing similar systems into the latest BMW S Series, which have already shown fuel and emissions savings of up to 25%.

Known as EfficientDynamics, this includes a system called Stop & Go which conserves fuel when the vehicle is stationary.

In addition, another system call ed Brake Energy Regeneration redirects energy that would otherwise be lost when the car slows down.

While critics are uncertain whether fuel cells in themselves can become a primary source of energy for cars in the near future, Honda expects that production of hybrid fuel cars will be unable to cope to demand.

New research from Kwik-Fit shows that while it now costs less to buy a vehicle, running and maintenance cost have increased sharply.

According to the research, the cost of purchasing a vehicle has fallen by 26.1 per cent over the past ten years.

However total vehicle running costs increased by 52 per cent between March 1997 and March 2007 and vehicle maintenance costs rose by 64.8 per cent.

Tax and insurance costs increased 50.2 per cent during the period, while fuel went up 48.4 per cent.

With overall inflation during this period rising by 32 per cent, it is now significantly more expensive to keep a car on the road.

The latest figures from the Office of National Statistics show that the steady fall in car production since October 2006 finally came to a halt in March 2007.

UK motor vehicle production in the three months to March was unchanged from the previous three months.

Vehicle production for the home market fell 0.8 pct, while output allocated for the export market grew 0.3 pct.

Compared with same period in 2006, production fell 6.9 pct in the three months to March 2007. Production for the domestic sector was 8.8 pct lower while production for exports fell by 6.3 pct.

Commercial vehicle production in the three months to March fell 3.8 pct from the previous three months, but were 0.7 pct higher year-on-year.

On average, approximately 126,000 cars a month were produced in the three months to March. Around 93,000 cars were for the export market and around 32,000 were for the home market.

Rolls-Royce Motor Cars is planning to introduce a smaller model than the Phantom before 2011.

The new model, which will be Rolls-Royce’s cheapest car, will be priced somewhere between the Phantom, which can sell for around £260,000 and the BMW 7-Series which starts at around £50,000.

The company hopes the smaller car, which should appeal to a broader market, will help to double its overall sales, which currently stand at around 800 cars a year.

The design for the new model is finished and a prototype is under development and should be running soon. Rolls Royce plans to install a second manufacturing line at its factory in Goodwood.

The smaller car is expected to sell well in China, where a Rolls Royce costs around $900,000 on average. Rolls-Royce plans to open two more dealerships in China by the end of 2007.

Rolls-Royce revealed the plans at the Shanghai Motor Show.

The future of Vauxhall’s factory in Ellesmere Port, Merseyside, has been safeguarded with the news that it has been chosen to build the new Astra model.

General Motors, Vauxhall’s parent company, announced that the model will be manufactured at Ellesmere Port plus three more European plants: Bochum in Germany, Gliwice in Poland and Trollhättan in Sweden. The company is investing a total of €3.1bn across Europe.

Without the new business the Ellesmere Port plant would have faced closure, with the loss of thousands of jobs.

Around 2,200 workers are based at the factory, but their future had seemed uncertain after a shift was cut in 2006 with the loss of 1,200 jobs.

Productivity at the plant has improved by 13% in the past year, significantly enhancing the factory’s competitiveness.

The third shift will be reintroduced in 2010, when production of the new Astra is scheduled to start, but no extra jobs will be created. The plant will produce 180,000 of the new cars a year.

The Ellesmere Port factory has been manufacturing Vauxhalls since 1964.

Since the Mazda6 came to UK showrooms five years ago, it has become the UK’s fastest growing marque and is Mazda’s best selling car in the UK.

The brand’s popularity has been helped by low list prices, strong residual values and the fact that it is inexpensive to run.

Mazda has increased its UK sales by almost 250% in the last five years and now sells over 50,000 vehicles a year. Fleet demand for its cars has played a large part in boosting sales. The upper medium model has been particularly popular as a fleet car.

The Mazda6 still beats rivals such as the Citroën C5, Peugeot 407 and Renault Laguna in terms of residual value, which remains above 30% at three years/60,000 miles for most models.

The Mazda6 has a range of standard features including manual air conditioning, 16 inch alloy wheels, height/reach adjustable steering wheel, electric windows front and rear, a radio/CD unit with four speakers, remote central locking, six airbags and ABS anti-lock braking.

Nissan is demonstrating the new Infiniti G37 Coupe at the New York International Auto Show.

Luxury brand Infiniti, which will launch in the UK next autumn, promises to combine Lexus levels of service with BMW driving experience.

Key enhancements to the new second-generation G Coupe include a larger, more powerful 3.7-litre engine, available advanced 4-Wheel Active Steer system, a new exterior design and a re-designed interior with intuitive, integrated technology.

Other members of the Infiniti family include the recently released G35 saloon, and the FX, which will be launched later this year.

While the G37, G35 and FX are currently powered by V6 or V8 petrol engines, Infiniti is partnering with Renault to develop a V6 diesel which should be ready by 2010.

There are also plans for a petrol-electric hybrid and a BMW 5 Series-sized saloon should be available within three years.

Nissan is investing €500 million to produce the brand in Europe, with the company’s technical centre at Cranfield, Bedfordshire, heavily involved in the suspension work.

The UK is expected to be Infiniti’s top European market and eighty dealerships will initially be established across Europe.

The latest Subaru Impreza, which will be launched at the New York motor show on Friday, will be available in the UK only as a five-door hatchback.

The Impreza has previously appeared in the UK as either a saloon or an estate, but is now following the European trend for more practical hatchbacks.

The new style Impreza has been developed around the product concept of refined designs for comfort and features rich interior design, roominess and space. While it offers increased sophistication and elegance, its fans may miss the distinctive styling of previous models.

From 2009, the Impreza car will feature the horizontally opposed 2.0-litre diesel engine which was demonstrated at the Geneva Motor Show in March 2007. Until then the range will continue with the same petrol engines as the current car.

The new model has a lower centre of gravity afforded by a flat four engine mounted lower in the nose. Additional use of high tensile steel throughout makes the new body a stiffer overall structure than the previous model.

Subaru does not plan to make its new WRX model available in the UK.