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Mercury dies off, Lincoln to benefit

Ford's brand portfolio is set to get smaller by the end of the year. Following the sale of Aston Martin, Land Rover, Jaguar and most recently Volvo (to Chinese automaker Geely), the Blue Oval has now announced the demise of its 'middle of the range' Mercury brand, with production of the last vehicles set to cease at the end of 2010. In a statement released to media, Ford announced that the shuttering of the 71-year old Mercury brand was in the interest of focusing on Lincoln, the automaker's only remaining premium brand.

Audi A1 Quattro models ‘on the way’

Audi has confirmed it is testing four-wheel drive Quattro versions of the A1 – indicating an imminent expansion of Audi’s supermini range. Although showcased as this one-off at a Quattro publicity event in Montreal, Canada, to celebrate 30 years of the all-corner drive system, Ingolstadt acknowledged at last autumn’s 2010 Paris motor show that Quattro versions of the A1 were in the pipeline. The production A1 Quattro will use the Haldex differential to split drive to both axles; it’s a similar technology to that found in A3 and TT Quattros, as opposed to the mechanical Torsen diff found in larger Quattro models.

Porsche and Mercedes-Benz proposals for China Family Car Project explored

Today's Chinese car industry is barely recognizable from that of 20 years ago, and the country is now the biggest market in the world. But in 1994, when the industry was still in its relative infancy, the Chinese government launched the 'China Family Car Project', inviting 20 major Western carmakers to develop proposals for a five-seat, cheap and environmentally-friendly family car for the Chinese market. The chosen proposal would be made in China under a joint venture with First Auto Works (FAW).