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Congress scales back tax break for car buyers

A proposed tax break for new-vehicle buyers is dramatically scaled back in the final version of the economic stimulus bill. Auto dealers and their allies had sought to make interest on auto loans and the sales and excise taxes on new-vehicle purchases deductible from federal taxes. Proponents say those measures are needed to boost showroom traffic and sales.

New Cadillac ATS to take on BMW 3 Series (+video)

Cadillac ATS - sorted at the Nurburgring GM has revealed that their new compact Cadillac ATS will debut at the Detroit Auto Show in January and go on sale in late 2012 as a 2013 model. The idea, just a few short years ago, that Cadillac could build a car that was capable of making the Germans look over their shoulder would have been laughable. But the new Cadillac ATS – debuting at Detroit in January – could do just that.

Honda to build subcompact cars in Mexico

Honda Motor Co. said Friday it will build an $800 million assembly plant in Mexico to produce subcompact vehicles for the Mexican and North American markets. The Japanese automaker said the plant is scheduled to begin operation in 2014 with an annual capacity of 200,000 units.