This sleek four-door, four-seater concept is the first glimpse of Peugeot's new 608 luxury sedan.

After the lacklustre response by buyers to the 607 here and in some European markets, the French carmaker has rethought the design direction of the big sedan.

It will be unveiled as the RC concept at the Paris Motor Show in October.

Peugeot has such prestige Germans as the Mercedes-Benz CLS in its sights.

The RC's unique selling point will be Peugeot's latest hybrid fuel technology.

Peugeot Automobiles Australia spokesman Mathew McAuley says the hybrid powertrain is the direction in which Peugeot is going.

McAuley says he also believes there is room in the local line-up for a big luxury sedan despite the lacklustre sales of the 607.

However, he could not confirm if Australia would get such a car.

“We'll have to wait and see,” he says.

Peugeot has sold 293 607s here since 2001 and sales have never really sparkled.

Last year 25 were sold and so far this year only 12 buyers have put a $73,500 3.0-litre V6 into their garages.

The RC concept is the work of Peugeot's new design boss, Jerome Gallix.

It follows a stream of RC show cars, including the RC Spade and RC Diamond concepts from 2002, and the super-sleek rear-engined V12 turbo-diesel 908 RC that was unveiled in 2006.

Like the previous RCs, the latest version has glamorous looks but the hybrid powertrain is a first for an RC concept.

Peugeot describes the concept as a working laboratory that brings together several stylistic, engineering and technological ideas in a single vehicle.

The car is designed to provide a high level of efficiency in performance and environmental impact.

Peugeot has not yet released engine details, but says the hybrid powertrain develops 233kW and emits only 109 g/km of CO2 when on the combined fuel cycle, or zero CO2 when used only in electric mode.

Gallix has made the trademark Peugeot grille and headlights more aggressive in keeping with the car's sleek profile.

When the 608 does go into production it is widely expected to be built off the same platform as the Citroen C5 and feature a similar line-up of turbodiesel and petrol engines.

However, there is speculation it could also use C6 underpinnings.

The 608 is expected to be launched with a choice of 2.0 and 2.2-litre four-cylinder HDi diesels. Flagship variants will be available with a 2.7-litre V6 oil-burner, an engine shared with Land Rover and Jaguar.

The car is expected to go on sale in Europe late next year, the hybrid powertrain later.

The LS460 has just been revealed and has jumped to the top of the local Lexus wish list.

“It's under discussion for Australia, but there is no decision yet. We want it, but it's a decision that will be made in Japan,” Lexus spokesman Mike Breen says.

“We have requested it and we are waiting for confirmation from Toyota Motor Corporation.”

The 460 AWD has just been unveiled at the Moscow Motor Show, where Lexus was over-run by luxury-car buyers keen to get something special to combat Russian winter weather.

The car is almost identical to the regular LS, apart from an all-wheel-drive system that picks up the mechanical package fitted to the hybrid LS600hL. This uses a Torsen limited-slip differential to split torque between the front and rear axles.

“It's another option for a vehicle in that segment of the market. Our competitors have all-wheel drive and we'd like to offer our Lexus customers the option,” Breen says.

Several other LS upgrades are being considered for Australia's LS460, including an electric Ottoman that puts a business class-style airline seat into the back of the LS behind the front-seat passenger. It is already popular with LS600hL buyers here.

“Other upgrades are being considered, but we have nothing yet to announce,” Breen says.

Australians have confessed to a wide range of dangerous deeds, from speeding to drink driving in a survey of driving behaviour.

But most agree on one thing — driver error is the biggest cause of crashes.

Almost half of all crashes are put down to driver error in the 2008 AAMI Crash Index, the 14th time Australians have been polled on a wide range of motoring issues.

“Absent-mindedness is a factor in 44 per cent of all car collisions, with drivers much more likely to crash due to their own inattention than from speeding, fatigue and alcohol combined,” AAMI's public affairs manager, Geoff Hughes, says.

Though speed, fatigue and alcohol are factors in 37 per cent of car crashes, AAMI's research shows inattention is the main reason drivers crash into another vehicle or stationary object.

The survey reveals 81 per cent of drivers have been involved in a crash, with AAMI records showing the crash rate in the past year was the highest since 2001.

Consulting psychologist John Cheetham says the results reflect Australia's driving culture.

“The lifestyles of working professionals, stay-at-home parents and even secondary and tertiary students, is such that when they get in their car they have a tendency to go into auto-pilot, leaving them free to concentrate on everything else that is happening in their lives when they should be thinking about their driving,” Cheetham says.

“To improve their concentration and prevent avoidable crashes, drivers must use good judgment and not drive when their minds are highly focused on work or social issues.”

The survey shows that almost half of drivers who have had their licence cancelled or suspended say it was because of speeding. And 40 per cent lost their licence after drink driving.

“This sort of willingness to get behind the wheel, when all the signs say you shouldn't, suggests some drivers are either ignorant of the law, or just plain stupid,” Hughes says.

DRIVER SURVEY DATA

34 per cent of drivers admit driving while knowing they are over .05

15 per cent admit taking a different route to avoid breathalysers

10 per cent admit they exceed the speed limit “most of the time”

17 per cent attribute crashes to speed

11 per cent attribute crashes to fatigue

9 per cent attribute crashes to alcohol

Source: 2008 AAMI Crash Index

In a time of seismic change in the car industry, Honda has decided its refreshed Civic will soldier on with a light makeover.

But Honda Australia is keen to push the refreshed Civic's hybrid credentials, spokesman Mark Higgins saying the current Civic hybrid has turned into the quiet achiever, with sales up 20 per cent this year.

It has sold 603 so far this year, up from 501 last year and interest has increased in direct correlation to the rise in fuel prices.

“In June we actually outsold the Toyota Prius in the private sector for the first time,” he says. “Toyota has done a great job of promoting hybrids, like we have, but most of their sales are to fleets rather than private buyers.

“Our sales are mostly to private buyers.”

Higgins says a positive in the Civic hybrid's favour was that it looked like the normal petrol sedan.

“The critical thing is that our car looks like a normal Civic and drives like the normal sedan.”

He says local dealers have been constrained by a lack of hybrid supply, he says.

“The bottom line is that if we could get more we could sell more,” he says. “But in the past six to nine months there has been a huge demand for that car in America and they're taking most of the production now.”

The upgraded Civic sedan will arrive in local showrooms early next year, sporting mild visual changes and the same 1.8-litre and 2.0-litre petrol engines as well as the 1.3-litre hybrid four-cylinder available now.

The biggest improvement is expected to be the fitting of electronic stability control — Honda calls it vehicle stability assist — as standard.

However, Higgins says final specifications are yet to be determined.

“VSA is already standard on the Civic Sport,” he says. “We're hoping to introduce it across the range, but that is yet to be confirmed.”

The Civic is a key car in Honda Australia's line-up and has benefited from a swing to smaller economical four-cylinder cars. Demand this year is up 15 per cent and the range is responsible for a third of total Honda sales.

Honda's other ace up its sleeve is the natural gas Civic, which is selling in record numbers in the US but is unlikely for Australia.

“It drives and rides just like a normal Civic,” Higgins says. “And it's the cleanest internal combustion engine in the world.”

A family feud has erupted over the future of Suzuki small cars in Australia.

The European Splash is being pitched against the Asian Alto to decide the car that will lead a sub-$15,000 onslaught next year.

Suzuki Australia is assessing the two against a strict set of local targets and is giving nothing away after the unveiling this week of the latest Alto.

The new baby will go public at next month's Paris Motor Show after being set as a tease with the A-Star concept.

“We'll make the decision before the Sydney Motor Show,” says Suzuki Australia general manager Tony Devers. “We're working through it all now and plan to announce the car in October,”

Devers has already been to Hungary to see the Splash being built and is planning a similar visit to the Alto factory in India early next year.

“I think we have the opportunity to create a new segment below light cars,” he says.

“So we're looking at the internal space in the car, benchmark safety with curtain airbags and electronic stability control, great quality and fuel efficiency about 4.6 litres/100km.”

They plan the same fuel economy as a hybrid for one-third the price.

Suzuki has given no mechanical details of the Alto and Devers is also keeping quiet.

But Devers believes the Alto and Splash are very close and the final decision will come down to supplies and price.

“The cars will be much the same except for styling,” he says. “They are very similar in most areas.

“We know the quality of both plants is fine. The Hungarian plant is already doing the Splash for Europe and the UK. It's as much about the pricing structure we can get.”

He refuses to be drawn on price but it is likely to be well below the Hyundai Getz, which points to something in the low $13,000s.

“We'd price it far enough away from Swift to not cannibalise sales,” he says.

Safety is the new buzzword for the Holden Barina. After scoring a two-star rating in ANCAP testing, a new and improved Barina is now claimed to be better in a crash.

The Barina is still basically a Daewoo carryover design, not one of the forthcoming global GM vehicles, but it has been upgraded with side airbags and more body reinforcement in a mid-life change that includes the predictable facelifting work to the body and cabin.

“We are trying to address the safety in the car,” GM Holden's director of marketing, Phil Brook, says.

“In our view, we have made some significant improvements from a safety point of view. It's the only car in its class with standard side airbags — and has some changes to the structure of the car. It's a way of addressing any concerns about safety.”

Brook says Holden will not donate a car for an updated NCAP test because it believes its work is more than good enough.

“We design the car for real-world tests and NCAP is only one measure. Obviously, we would prefer a better safety image.”

The latest Barina comes with a slight price increase at a time when GM Holden says it is struggling to keep pace with Australian demand for the car.

“We have people screaming for them,” Brooks says. “Given we have them, the car is good for probably 1200 units a month. It varies from 900 to 1200, depending on stock.”

Brooks says Holden has lifted the bottom line on the Barina, but the increase is down to improvements and the costs of the airbags and raw materials.

“It's up at retail by about $800. It's to cover the cost of a number of changes,” he says.

The latest Barina has a new grille and changes to the headlights and tail-lights, as well as a cabin including an updated instrument panel, console and new seat fabrics.

The new-look dash has a four-circle instrument cluster with matt-chrome trims.

Prices run from the three-door hatch, from $14,490, to the four-door sedan and five-door hatch from $15,990. The major option is anti-skid brakes with alloy wheels at $1190.

“It's what we would call a minor change to this particular generation of Barina,” Brook says, hinting that the all-new replacement is about two years away and definitely part of the global GM product push.

Bugger it, go out and buy a new Jag. They're not as expensive as you might think

The Jaguar XJ is for the gentleman (or lady) of a certain age - a sensitive subject at my time of life.

He (or she) is probably a company executive who, on the way up, has become accustomed to comfort and the finer things in life.

Employing a driver, he probably never gets behind the wheel, spending his time in the back seat doing what captains of industry do in the rear of their company cars.

In these taxing economic times, those from the big end of town and others need not feel guilty about travelling in this flash car.

This is no million-dollar Maybach or Rolls-Royce. The 3.5 litre Jaguar XJ V8 (the test vehicle) would cost the company $159,990 plus on-road costs.

If times are tough there's always the economical 2.7 litre XJ6D diesel at $154,900 or, if shareholders are on side, the 4.2 litre Super V8 long wheelbase at $234,900, still only a quarter the cost of the ultimate limo.

The 2008 XJ enjoys significant improvements to its interior thanks to extensively redesigned front seats which are standard across the range and offer even more comfort and support. Rear seat passengers can relax with greater leg and foot room following changes to the backs and lower cushions of the front seats. Wall-to-wall leather, it's all very gentlemen's clubby.

On the other hand, business is never far away, an upgraded Bluetooth connectivity system allowing users to hook up to five approved mobile phones to the car's own in-car telephone system.

Oh, gawd! You can run, but you can't hide.

On the outside the XJ has been given a fresh look with an all-new, distinctive design which includes a new bumper with reshaped upper and lower mesh grilles and a new Jaguar Growler badge, giving the 2008 model a purposeful appearance.

Adding to this is the Jaguar Leaper, a bonnet mascot that stands alongside the Rolls-Royce Spirit of Ecstacy and Mercedes-Benz three-pointed star in the automobile lexicon of calling cards.

Adding a further touch of attitude, side power vents match those introduced on the XK sports car and there are lower body sills and a subtle rear aero spoiler.

New door mirrors maintain the automotive fashion with integrated indicator lights, while upgraded alloy wheels add to the saloon's sporting appearance.

The XJ test car rolled on new 19in Polaris alloy wheels — the XJR features 20in Cremona alloys and Super V8 features 20in Calistos.

The Germans are sold, so it seems, the Jaguar XJ winning the annual `Autonis' design award - 16,000 readers can't be wrong - for a luxury car from German car magazine Auto Motor und Sport, ahead of home-grown models from BMW, Mercedes and Audi.

Under the bonnet was a new engine — a 3.5 litre V8 producing 190kW power and 335Nm of torque.

Other power plants on offer are the highly acclaimed economical 2.7 litre V6 twin-turbo diesel and high performance 291kW 4.2 litre supercharged petrol V8.

A six-speed automatic transmission provides smooth and slick gear changes while handling the high torque of the engine, meaning higher gearing can be incorporated, helping to cut fuel consumption.

When Jaguar's ground-breaking all-aluminium XJ luxury saloon range was launched in 2003, its lightweight body helped the car set new standards in handling, precision and refinement.

The latest aluminium monocoque is even better, being 60 per cent stiffer and 40 per cent lighter than that of the model it replaces.

Every XJ comes with sophisticated safety features such as computer active technology suspension, automatic speed limiter and tyre pressure monitoring system.

An adaptive restraint technology system uses ultrasonic means to calculate appropriate airbag deployment and force, based on passenger weight and position.

Side-curtain airbags, front seat thorax airbags and energy absorbent front seat backrests ensure a safe driving experience for all occupants.

The cabin is an oasis of calm, extensive sound insulation and sealing seeing to that.

It's the perfect ambience for thinking and making decisions . . . even driving.

It's low, a purposeful two-door coupe sitting on big wheels with a sleek body and it promises super performance. But what is the car in our picture - an Aston Martin, Jaguar XK, maybe a Ferrari?

Nope. It's from Japan and from a company known for building luxury cars, Lexus.

This Lexus LF-A is arguably the first supercar from a Japanese brand since the Ferrari-challenging Honda NSX of 1991-2005, but with a lot more power than the NSX.

Lexus has aimed “to build a supercar with world-class performance that is uniquely Lexus”.

It features a five-litre, V10 engine developed for high revs. Power output is 370kW and early track testing shows a 320km/h top speed is within reach.

The engine is mounted in front of the two-seat passenger compartment but behind the front axle line. LF-A engineers call it a `front-mid” configuration.

The transaxle is rear mounted, providing the rear-wheel drive that enthusiasts prefer -

and helping the weight distribution. As an aid to even weight distribution over each end of the car, two cooling radiators are mounted in the rear.

It means the nose of the car can be kept low and designed for optimum aerodynamics - a science which often is compromised by having airflow into radiators.

In this case, large intake ducts are just ahead of the rear wheel on each side of the car and feed air to cool the radiators.

Aerodynamics, including the car sticking to the road at high seed, is helped by venturi-effect underbody shape as used on race cars.

The rear bodywork has a pair of large grilles as exit vents for hot air from the radiators.

The Lexus LF-A bodywork is built of aluminium and carbon-fibre. The rear section has a speed-activated spoiler.

Gearshifting will be via paddleshifts.

Lexus started with a fixed-top coupe in developing its LF-A, which is now well beyond concept stage but also has created a Roadster convertible as a show car. Both versions are just 122cm tall.

Wheels? Try 20in diameter turbine-styled alloys - special 265/35 tyres on the front and 305/30 on the rear.

Production of the two local heroes will continue into the next decade at the earliest, according to the president of the Ford Motor Company, Alan Mulally.

But the long-term future of local carmaking under the blue oval is likely to be with the smaller European-designed Focus, which will run side-by-side with the local family fighters on the Broadmeadows production line from 2011.

"I think there will always be a Falcon-sized vehicle. There is a market for Falcon, both here and overseas," Mulally said in Melbourne this week.

But he would not confirm a local production future for the Falcon that will eventually follow today's FG, or even the chance of it being designed in Australia. And he refused to be drawn on the potential for an imported car wearing a Falcon badge after 2012.

"There will be no new announcements today," Mulally said.

The worldwide Ford chief hit Melbourne the morning after lobbying Federal ministers in Canberra, including Prime Minister Rudd, for what he described as a `pause' in the planned cut in import tariffs on motor vehicles from 10 to five per cent in 2005.

"The key thing about the pause is the near term. It's an important time right now to take this pause. Right now I think it's a critical piece," Mulally said.

"Clearly, we are at a real transitional time in the auto industry worldwide. Our commitment is to continue to invest.

"Our real plan is to create a viable, complete business in Australia.

Australia is a tremendous opportunity for us."

Ford has already announced the end of local engine assembly and a switch to an imported V6 from 2010, then the start of Focus production in 2011, as the local operation is integrated into the One Ford global plan.

Mulally said he had good news for local workers as he headed for a staff briefing at Broadmeadows, although he could not rule out any additions to the 350 job losses announced last week as the company adjusts Falcon and Territory production to falling sales.

"We will size our production to the demand," he said.

Mulally said Ford Australia is strong and viable despite its recent troubles, including the resignation last week of company president Bill Osborne.

"You guys have got to be bullish on your industry. For where we are, in a terrible business environment, it's doing extremely well," he said.

The switch to Australian production of the Focus, which is currently imported, is part of a regional export plan for the car.

"In all honesty, Australia's connection is to Asia-Pacific. We need a strong export program. And we need to export into Asia," the executive vice-president for Ford in Asia-Pacific and Africa, John Parker, said at the Mulally briefing.

"It is absolutely critical that our Australian operations make the transformation from only building large cars, which have only one way to go which is down, to making cars which are relevant to what the Australian customer wants and what the AP customer wants.

"We can have scale. That was the big decision in driving Focus here."

^{Michael Schumacher talks about testing the new Ferrari California.}

Ferrari's former F1 champion gives California the thumbs up.

Michael Schumacher just can't leave Ferrari alone.

The retired racer has been back in action in the Italian team's latest Formula One racer this year and has now logged seat time in the road-going California convertible, which he drove at Ferrari's F1 test track, Fiorano.

Schuey compared notes with the company's regular test drivers, Dario Benuzzi and Raffaele De Simone.

As the car continues down the road to full-scale production, testing has already revealed a 0-100km/h sprint time better than four seconds.

Not surprisingly, Schumacher had good things to say about the car — which is already a sellout for next year in Australia — after testing every recent Ferrari road car including his personal Enzo supercar.

“As with the 430 Scuderia, taking part in the project since the very beginning has been really fascinating and great fun,” he says.

“Though the cars are very different, both offer unique driving pleasure because of the inherently sporty character of all of the cars that come out of Maranello. The 430 Scuderia is, of course, a more extreme model that focuses on cutting-edge performance.

“However, though the Ferrari California is very much a grand tourer in terms of its usability and high level of interior comfort, it is still surprisingly sporty and fun to drive under all conditions.”

^{Gran Turismo brings you a Virtual Reality Tour of the Ferrari California.}