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Mercedes-Benz has big plans for small cars

Breaking outside its American position of rear-wheel-drive luxury vehicles, Mercedes-Benz will launch its new front-wheel-drive architecture in the United States in the next three years in the form of a coupe, SUV and possibly a small wagon or compact hatchback. Joachim Schmidt, Mercedes' global sales and marketing boss, said Mercedes is developing at least four models based on its MFA, or Mercedes Front-wheel-drive Architecture. "We will introduce the next generation of our MFA family to the U.S.," Schmidt said in an interview.

Ford and Geely agree on Volvo sale, could finalize deal in early 2010

Ford expects to sign a deal to sell its Volvo car unit to China's Zhejiang Geely Holding Group by the first quarter of 2010 and close the deal in the second quarter, the U.S. automaker announced today. Ford said that all of the deal's key commercial terms have been settled.

AUCTION GOES BANANAS FOR CLASSIC VW

A VINTAGE 1950s Volkswagen Beetle owned by a pensioner will go under the hammer at an auction later this month. The classic car, which has picked up a number of awards, is expected to fetch around £9,000 when it appears alongside a selection of rare art and antiques in the McTear's Collectables sale in Glasgow on September 29. The 1953 Beetle, which is a 1200 Deluxe model, has been in the hands of 72-year-old Willie Black since 1966, the same year that VW gave it the Best Beetle in Britain accolade.