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General Motors' small Cadillac will take aim at the BMW 3-series

The new Cadillac model that General Motors announced today will be aimed at the smaller models produced by BMW, Mercedes-Benz and other luxury brands. The rear-drive Cadillac is expected to be called the ATS and to arrive in showrooms in 2012 or early 2013, according to industry sources. “We will have a car positioned below the CTS in our lineup to compete with the BMW 3 Series and Mercedes-Benz C class.,” said Nick Twork, a Cadillac spokesman, during a telephone interview.

Call to pass on petrol price cuts

THE AA has joined calls for retailers to pass on a fall in the wholesale price of petrol to motorists. Pump prices have "barely budged" from the late summer high of just over 138p a litre despite a 2p-a-litre fall in the wholesale price of petrol a fortnight ago and a further 3p drop last week, according to the latest AA Fuel Price Report. Petrol averaged 132p at the start of the year, "and this is where it should be heading if the wholesale price collapse persists", the report said.

Lazzarini Design creates Ferrari-powered Fiat 500

If you saw the Fiat Abarth 659 Tributo Maserati car and thought to yourself, “That's just not enough razzle-dazzle,” then maybe this will strike your speed-seeking fancy. It's a Fiat 500 powered by one of the best engines in the world—the 4.5-liter V8 from the Ferrari Italia. Lazzarini Design came up with the concept, and the company says it's waiting for an investor with $550,000 burning a hole in his or her pocket to give building one a shot.