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New Smart ForTwo and ForFour set for 2014 unveil

Mercedes-Benz's struggling Smart city car division is seeking to add a new dimension to the urban driving experience with its third-generation ForTwo, currently undergoing the final phase of a three-year test and development program ahead of a planned unveiling mid next year. Set for North American launch in 2015, the ultra-compact two-seat hatchback represents a fresh chapter in operations for Smart, which has recently gained greater independence from parent company Mercedes-Benz as its boss, Annette Winkler, attempts to stem years of financial losses after almost a decade of rebuilding following its short-lived joint venture with Mitsubishi. The new ForTwo, known internally as project C453, has been developed in a joint engineering program with the upcoming second-generation ForFour and its sister car, the third-generation Renault Twingo.

Lexus GS-F to get LF-A V10

Lexus are said to be preparing a GS-F with the V10 from the LF-A (pictured) There have been rumours that Lexus are going to produce a range-topping GS-F for some time. But with car makers looking at downsizing and trying their best to stick smaller and more economical engines in its cars it seemed the possibility of an M5 competing Lexus GS were going nowhere soon. But according to Japan’s Best Car magazine that couldn’t be further from the truth.

Senate considers more funds for cash-for-clunkers program

The cash-for-clunkers program is running on fumes, and government officials are working to get more funds for the popular program before the end of the week. A plan to add $2 billion to the fund passed the House and is being considered by the Senate, where is appears to have support, Reuters reports. The initial $1 billion clunkers outlay is nearly exhausted.