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Friedrich-Wilhelm Lenz, left, managing director of Volkswagen Russia, and Martin Winterkorn, chairman of Volkswagen AG, celebrate the debut of VW production in Russia. (Photo courtesy of Volkswagen of America, Inc.)

KALUGA, Russia — Volkswagen, Europe’s largest auto company, on Wednesday launched production at a new ultramodern plant here, about 75 miles south of Moscow, hoping to become a serious player in the booming Russian automobile market.

Volkswagen is starting with kit assembly of the Passat sedan and the Skoda Octavia in the spring. The company said Thursday that new cars will only be on sale in Russia early next year, “after building sizable stock.” No model will be sold in Russia priced above $15,000, VW vows.

The company later plans to add production of the Skoda Fabia and a Russian remake of the VW Polo model, expected to be priced in the $10,000 range.… Read the rest of this entry

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The heart of an American muscle car and the looks of a European GT. Geiger Cars\’ Corvette Biturbo has the performance and style of a true exotic. (Photo courtesy of Geiger Cars)

MUNICH, Germany — With a combined power output of 1,165 horsepower, Geiger Cars\’ modified Corvette Z06 and new Corvette Biturbo offer performance figures that match the supercar elite.

The standard Z06 is hardly a car we\’d call a slouch. With its 505-horsepower 7.0-liter V8… Read the rest of this entry

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At least from the front the CEO is much less a copy of the X5. We doubt that will placate BMW’s lawyers. (Photo courtesy of China Automobile Deutschland)

AUGSBURG, Germany — Get your driving gloves ready and keep your lawyer on speed-dial, because China Automobile Deutschland is moving forward with plans to import the Chinese-built CEO and UFO sport-utilities into Europe.

The trucks were widely panned at the 2007 Frankfurt Auto Show in September as being shameless copies of the BMW X5 and Toyota RAV4. China Auto’s vehicles seemed to draw more attention from corporate lawyers than any potential customers. Plans to import the Smart Fortwo-aping Noble city car have already been put on indefinite hold following legal threats from Smart’s parent company, Mercedes-Benz.… Read the rest of this entry

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Ford is offering $500 off new Ford products to owners of 1990-2000 Explorers in certain states to help settle class-action lawsuits related to the Bridgestone Firestone tread-separation debacle. Pictured: a 2000 Ford Explorer. (Photo courtesy of Ford Motor Company)

DEARBORN, Mich. — Customers in four states who owned or leased Ford Explorers in the 1990s will be eligible for $300 to $500 in discounts off a new Ford under terms of the automaker’s class-action lawsuit settlements announced this week. The discount certificates are to be given to nearly a million customers who were affected by the massive 2000 recall of tires for tread separation problems. The settlement reflects claims for lost value on the cars in the wake of the problem and its attendant publicity.

The settlement would be extended to people who owned or leased Explorers in California, Illinois, Texas and Connecticut in the decade… Read the rest of this entry

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On the other hand, the J.D. Power Avoider study learned that imports such as the 2008 Infiniti FX (pictured) are looked on favorably by many younger buyers. (Photo courtesy of Nissan Motors Corporation Inc.)

WESTLAKE VILLAGE, Calif. — In a major warning to Detroit, J.D. Power and Associates on Thursday reported that young consumers have a strong bias against domestic vehicles, according to its 2007 Avoider Study. The Hummer H3 took a real hit in this new report, earning the dubious title of “most-avoided model” in its segment.

“Among import buyers, for example, the younger the person is, the more likely they are to avoid models because they are of domestic origin,” J.D. Power and Associates said in a statement. The 2007 Avoider Study is based on responses from more than 35,000 owners who registered a new vehicle in May.

A key finding… Read the rest of this entry

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The OnStar telematics system will be rolled out in China in 2009 on Shanghai GM vehicles. It’s the first time the system has been distributed outside North America. (Photo courtesy of OnStar)

SHANGHAI, China — OnStar, which has become a mainstay feature in GM vehicles in the U.S., will make its debut in China in 2009, General Motors announced on Thursday. The automaker said the news marked a major milestone since “This is OnStar’s first venture outside of North America in its 11-year history.”

The telematics feature will initially roll out on vehicles manufactured and distributed in China by Shanghai GM.

It will include similar services to those provided by OnStar in the U.S., including roadside assistance, remote door unlock, hands-free calling, vehicle diagnostics, turn-by-turn navigation and advanced automatic crash notification.

The telematics joint venture among General Motors, Shanghai Automotive Industry Corporation Group and… Read the rest of this entry

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Based on the spy photos, we expect the next-generation X3 to be bigger than the current model. (Photo by KGP Photography)

MUNICH, Germany — The first prototype for BMW’s all-new 2010 X3 has broken cover, and spy photographers caught it in action yesterday on the streets of Munich.

Despite the heavy camouflage, the sleekness of the revamped X3’s new shape is unmistakable. From this first look, it seems that a little more “sportwagen” has crept into the new X3’s exterior design. The X3 continues to ride on a BMW 3 Series platform, but it has been stretched and widened for additional functionality.

From an earlier X3 test mule cloaked in 3 Series wagon sheet metal, we have already surmised that the future X3 will get a redesigned suspension setup compared to the current model.

Expect additional mechanical specifications to continue to… Read the rest of this entry

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The GMC Terrain, a compact crossover ute, made its debut at the Kuwait Auto Show. It’s a Saturn Vue with some GMC design cues that GMC calls “the smallest member of the GMC family.” (Photo courtesy of General Motors Corporation)

KUWAIT CITY, Kuwait — General Motors apparently wants to build up the GMC brand in the Middle East. How else to explain the introduction of the “new” GMC Terrain here at the Kuwait International Automobile Exhibition?

If the Terrain looks familiar, check out the Saturn Vue. Or the Opel Antara. Or the original — the Daewoo Winstorm. It appears that the corporate parent simply borrowed some front-end design cues from the much larger GMC Acadia and applied them to this compact crossover.

GM’s press release from Kuwait touts the Terrain as “the smallest member of the GMC family.” In the Middle East, it will be… Read the rest of this entry

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The Barenaked Ladies will make the gala “a standout event,” say organizers of the Detroit Auto Show. We will not touch that one. (Photo courtesy of Sony)

DETROIT — Mid-January weather in Detroit would not seem to be a hospitable environment for a group called the Barenaked Ladies. Nevertheless, the Canadian rock group will be the headliners at the 2008 Detroit Auto Show’s black-tie preview party on January 18.

The group will perform for a wandering audience of formally dressed executives, socialites and other VIPs who pay $400 per ticket — $390 of which is tax-deductible — to attend the event. The proceeds are earmarked for various Detroit-area charities, and the evening is scheduled to be broadcast on Detroit television.

An auto show spokesman said the organization is “thrilled” and says the participation of the (all-male) rock group should make the evening “a standout event.”… Read the rest of this entry

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Opel GTC Concept (pictured) from the Geneva auto show is said to give the styling inspiration for the forthcoming Insignia. (Photo courtesy of Opel)

RUESSELSHEIM, Germany — Opel has announced that the successor to its midsize Vectra will be renamed Insignia. The new range will make its debut next July at the London Motor Show and will be sold across Europe with both Opel and Vauxhall badging.

Insignia will be among the first General Motors vehicles to use the updated Epsilon II global midsize platform. It will be a sibling of such Epsilon-based models as the Chevrolet Malibu, the Saab 9-3 and the Saturn Aura.

Insignia will provide the mechanical base for the next-generation Aura, which is slated to hit the U.S. market in late spring 2009. The 2010 Aura is expected to use much of the Insignia’s sheet metal, with a Saturn face replacing… Read the rest of this entry