Designer Tom Matano part of start-up car company in Louisiana

A new auto company backed by Texas billionaire investor T. Boone Pickens and staffed by former Mazda design chief Tom Matano plans to build "environmentally friendly" vehicles in Louisiana. V-Vehicle Co., of San Diego, will bring about 1,400 workers to a Monroe plant that once belonged to General Motors, according to a statement Wednesday from the Louisiana Economic Development Web site.

General Motors recalls Chevrolet Impala police cars to repair suspension part

General Motors is recalling 36,413 Chevrolet Impala police vehicles from model years 2008 to 2012. The problem is with the front lower control arm, which may fracture. GM says it may cause tire chirping at low speeds and could result in loss of control of the vehicle at higher speeds, leading to a crash.

Audi develops new A2; plans for U.S. unclear

Audi is developing a reincarnation of the A2 small car that will slot between the A3 and the A1 minicar introduced in Geneva last week. "There's clearly room for another product and another concept between the A3 and A1," Audi CEO Rupert Stadler said on the sidelines of the Geneva auto show. Michael Dick, Audi's board member for technology, said in an interview that the company's push to add electric variants will play a role with the next-generation A2 "in the near future." The German media have reported that the A2 is expected by 2014.