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Volkswagen to launch budget brand, priced from £4800

Volkswagen is planning to launch a new budget brand to challenge the likes of Dacia – and the bargain basement minis will be sold in Europe too. Prices for the yet-nameless new cheap VWs will start from just €6000, or £4800, according to paperwork seen by CAR. How can VW build city cars so cheaply?

Renault Clio

This is the new, fourth-generation Renault Clio and the first production car to feature the brand's new design language under Laurens van den Acker. Its grille and lamp graphics are a clear relation to the Dezir concept first shown in Paris 2010, while the rear feature lines and lamps have shades of the Captur concept. The new Clio will only be available in five-door format although its rear door handles are hidden in its C-pillars.

Audi S3 (2012) first official pictures

Audi has revealed official pictures of the new S3 ahead of its debut at the 2012 Paris motor show. Audi should know what matters when it comes to hot-hatches, with two generations of S3s occupying a 13-year stretch of Audi history. On first impressions, the new model’s restrained styling fits well with the S3’s history of subtle sporting luxury rather than out-and-out hot hatch thuggery.