The Commodore has had its V6 engine tweaked to improve economy and cut emissions, with the V8 to follow in January with a major technological change which will cut cylinders during low-load running for even greater efficiency.

Official details of the engine update will be announced by GM Holden later today, but the company claims a cash saving of more than $1.50 a week for an average family Commodore running an average of 20,000km.

The improvement could mean a 60-litre saving on fuel use a year, with a CO2 reduction of close to 170kg.

But there is a price to pay — the V6 will lose 5kW of power, reducing output to the level of the 2004 Commodore at 175kW. It means the Holden will trail well behind the rival Ford Falcon, even though it easily outsells it in showrooms.

“You would have to be a race car driver to feel it. The fuel economy benefits far outweigh it,” GM Holden spokesperson Kate Lonsdale said last night. “The big focus at the moment is on fuel efficiency and emissions.”

Ms Londsale said the improvement in economy is up to 0.4 litres/100km, or more than 2.5 per cent.

The LPG Commodore has received an even bigger tweak with an improvement of 1.3 litres/100km for the sedan, and slightly less for other models.

The Japanese brands like Subaru and Mitsubishi give you a choice of both from the all-wheel drive WRX and Lancer Ralliart to the pipping hot STi and Evo.

The Europeans find a middle ground with cars like Volkswagen's R32 and the silky 3.0-litre sixes that BMW slots into things like the 130i.

Audi's distinctive S3 three-door leans towards the pipping hot category.

Now the S3 range has just gotten a whole lot warmer with the arrival of the five-door S3 Sportback.

Priced at $68,310, the S3 Sportback is $1907 more than the three-door and a whopping $11,820 more than VW's R32 all-whee drive five-door hatch.

Along with the extra doors, the S3 Sportback is available for the first time with Audi's magnetic ride system and a parking assist system similar to that available in some Volkswagen models.

The Sportback shares its turbo-charged direct injection 2.0-litre four cylinder with the three-door, mated to Audi's quattro Haldex all-wheel drive system and a six-speed manual transmission.

An electronically-controlled, rear-mounted hydraulic multi-plate clutch, distributes the torque as required.

The 2.0-litre delivers 188kW at 6000 revs and 330Nm between 2500 and 5000 revs.

The Sportback can hit 100 km/h in 5.8 seconds and has an electronically limited top speed of 250 km/h.

Despite the grunt, the high-tech four delivers a combined economy figure of 8.5 litres/100km.

Apart from the engine, the five-door shares much underneath with the three door, from its aluminium swivel bearings and wishbones that reduce unsprung weight to the stiffer chassis bearings, 25mm lower ride height, beefy brakes and electro-mechanical steering.

At 4303mm the five-door is 72mm longer than its three-door stable-mate and 3mm higher while width remains the same at 1765mm.

Visually, the Sportback shares the “S” styling cues of its three-door brother including the chrome-plated radiator grille, vertical double bars, and a front bumper with powerful spoiler lip.

The foglights get chrome rings, there's a platinum grey rear diffuser and twin oval exhausts at the back, along with redesigned tail-lights.

S-specific exterior mirrors with indicators round out the design. Fitted as standard are new S design 18-alloys and Xenon-plus headlights with LED daytime running lights.

Inside, there are Nappa leather sport seats, S design multi-function leather sports steering wheel, Bose stereo speakers and Bluetooth.

Aluminium-look pedals and door sill strips complete the look.

There is a full complement of safety gear, from airbags to electronic stability control incorporating anti-skid brakes, traction control, and an electronic differential lock.

The S3 Sportback goes on sale next month.

Audi Australia expects the five-door to account for almost 70 per cent of all S3 sales over the next 12 months.

Since 1999, 650 S3s have been sold nationally.

The current generation S3 three-door, which was launched mid-2007, has sold more than 260 to date.

The magnetic ride suspension is a $2400 option, along with the $950 parking assist system.

Causing the frustration is the failure to develop right-hand drive capability for two of the Korean marque's most exciting new vehicles.

The stylish new Genesis Coupe, unveiled in Korea last week, and the exciting LPG Hybrid Elantra currently on sale in Korea have both been tagged unavailable for the Australian market much to the annoyance of the local operation.

"There are a couple of cars that we would love to be able to get but, at least for the moment, we can't because they are not available in right-hand drive," Hyundai Australia's new product manager Manuel Tyras explained.

"We know we can't get the LPG Hybrid Elantra and just at the moment it is not looking good for the Genesis — at least in the short term."

Tyras said Hyundai Australia would not be giving up the fight for its wish list, particularly for the stunning Genesis Coupe which will offer a replacement option for the aging Tiburon sports car.

"It is an amazing car ... it is the perfect car we need to provide a brand halo and as an eventual replacement for the Tiburon," Tyras said. "We certainly haven't given up on it and we are planning to carry on the fight for as long as it takes."

A delegation from Hyundai Australia is expected to take another submission for a right-hand drive Genesis to Korea in the coming weeks and is also expected to push hard for a right-hand drive option in any future development of the LPG Hybrid program which could include i30, Grandeur and the Santa Fe and Tucson SUVs.

The Genesis Coupe takes Hyundai into new territory with its rear-wheel-drive architecture and sports performance from an all-aluminium 231kW 3.8-litre DOHC V6, while at the entry level the engine is a 166kW 2.0-litre turbocharged four. The V6 features dual continuously variable valve timing and with 361Nm of torque on tap the car will set behind a 0-100km/h sprint 6.3 seconds.

The V6 is mated to a six-speed ZF automatic. A six-speed manual is also available and features a short-stroke shifter, optimised gear ratios and triple cone synchronisers.

Much closer to a place in the Hyundai showroom are a trio of small cars, two of which are certainties and the third is under serious consideration.

First to arrive will be the i30 CW wagon, adding a new dimension to the award-winning i30 hatchbacks.

"Sometimes you follow a trend, other times — if you are lucky — you can set one," Hyundai Australia's sales boss Kevin McCann said. "With the i30 wagon we are hoping to lead the way into a segment I believe is about to really grow."

McCann said the decisions by Toyota and Mitsubishi to cease their small wagon trade in Corolla and Lancer has opened a door for the i30 CW. "I feel that the time is right and that this is the right car for people who may find a hatch just a little small but don't want to take the step up to a larger segment or an SUV."

Pricing for the wagon, which is due to arrive early next year, has yet to be set but it is expected to be very competitive with the i30 Hatch, possibly carrying a premium of around $1000.

That will be followed next year by the smaller i20 which has rapidly moved from a possibility to a car with an almost certain future in Australia. The Getz-sized style leader will not replace Hyundai's light car in the price-sensitive segment but rather sit as a premium offering. Most likely the ageing Accent will be moved aside to make room for the i20.

Less certain but definitely under consideration is the baby i10 sub-compact. Built in India the i10 would most likely come to market with a choice of 1.1-litre and 1.2-litre petrol and diesel engines and priced in the low $12,000 range.

It's a one owner, one-off machine that has only had one driver, and he just happens to be the legendary Peter Brock.

The last Holden that Brock drove, and the last car that he ever competed in on a circuit has been put up for sale.

Owner and old-Holden restorer Phil Munday, who built the 1948/215 Holden from a shell into a retro racing car for Brock to race in 2006, is asking for "$600,000 plus”.

Brock raced the car at the Goodwood historic racing festival in England in 2006.

After returning to Australia several days later he competed in a Targa rally in Western Australia where he was killed in a racing crash.

Spokesman Tim Pemberton says it is an unique car, particularly for Brock fans.

"He is the only bloke who drove it,” he says.

"And it's personally signed by Brock on the roof."

"It's his last Holden and his last circuit car."

But is it worth $600,000?

"It's hard to put a price on these things. It's worth what people are prepared to pay,” Pemberton says.

"But, Peter Brock memorabilia is selling extremely well at the moment."

Pemberton says a collector paid $550,000 last year for the Torana XU-1 that Brock drove in the 1973 Bathurst 1000.

He says the retro Holden race car has already attracted contact from "three or four interested parties”.

However the current credit crisis had forced them to renegotiate their funding.

Since returning from England the car has been stored and put on display at various car shows.

The old Holden was a personal favourite for Brock.

Before going to Goodwood he told Carsguide: "It's the best early-model Holden that's ever been built. I don't think anyone has got any more out of that engine ever.

"I owned a lot of them. I had 48-Series Holdens before I turned 20 and I got my CAMS (racing) licence driving one."

The VW-owned Czech brand has given its strongest hint yet that it will take on the small car market in Australia next year as it looks for a way to increase its volume after what has been a mediocre rebirth of the brand in this country.

Skoda has been struggling as a niche player in the increasingly crowded Down Under market - its sales volume so far this year of just 575 units puts it behind its established European rivals Alfa Romeo, Saab, Fiat and Jaguar. Skoda sells the Octavia liftback and wagon, Roomster hatch/people mover and Scout crossover wagon.

An upbeat Skoda Australia boss Matthew Wiesner says the brand will weather the financial crisis and should finish the year with about 850 sales, which is well down on its earlier market penetration forecast.

He admits the range is predominately top heavy and needs an entry in the light or small car market to increase volume.

"The next step is to broaden our range; obviously we need a smaller entry car, that's where the volume will come from," he told CarsGuide.

The availability of a direct shift manual/automatic transmission (DSG) across the range is also expected to win the hearts of buyers, especially women.

He revealed at the launch of the Octavia RS Tdi this week he had meet with Skoda officials at the Paris Motor Show - the one hour meeting extending to three hours as he successfully argued the case that Australia needed to diversify.

The small Fabia, a five-door hatch and wagon, will likely go sale here by the third quarter next year to take on the likes on Peugeot's 207/307, Honda Jazz and Citroen C3/C4.

"It's looking (the arrival of the Fabia) more likely. We had a good and long meeting in Paris. We are now down to talking about models, transmissions, engines and specification," Wiesner said.

But price may be the sticking point.

`We would love to get the Fabia at $19,990, that seems to be the starting point nowadays, but the spread of models will fit in the low to mid $20,000 bracket."

And a slow down in production at the Skoda plant near Prague because of a fall in demand for new cars in Europe due to the economic crisis may work in Australia's favour, he said. It would free up space on the production line for right-hand drive models.

Mr Wiesner says Australia still has its hand up for Skoda's forthcoming Yeti, the brand's first proper SUV.

Meanwhile, Skoda Australia is planning to freshen and widen its existing line up next year.

From February, the existing petrol Octavia RS will come with the availability of a manual/automatic DSG gearbox for the first time; it and the diesel version will gain audio controls and DSG paddle shift mounted on the steering wheel.

Skoda will add the larger four-cylinder Superb mid year and follow that with a V6 flagship model at the end of next year - a saloon which will be optioned with a self parking guidance system.

Meanwhile a restyled Octavia, shown at the recent Paris Motor Show, will arrive in March and will feature a new 1.8-litre engine and a seven-speed DSG transmission A new RS model, based on the new Octavia, will come later in the year but retain its six-speed DSG gearbox, not the seven-speed which will be fitted to base models.

x

With images of the heaving seas and elegant, minimalist ocean-going yachts, Volvo is launching two special versions of the XC70 and XC90 models to celebrate the staging of the 2008/2009 Volvo Ocean Race.

Honouring a race that will take competitors on an eight-month extreme adventure covering 37,025 nautical miles and visiting ports including Cochin in India, Galway in Ireland and Rio de Janeiro in Brazil, the limited edition Volvo Ocean Race XC70 and XC90 models capture the spirit with materials that echo those used in the magnificent vessels that compete in the event.

The stitching on the upholstery traces its roots to sail making.

The aluminium detailing on the mats resemble clews, and the design of the unique wheels has been inspired by the movement of the ocean's waves, says Lennart Stegland, president of the special vehicles division at Volvo Cars.

The Volvo Ocean Race XC70 embraces 3.2 and 3.2 LE models, as well as D5 and D5 LE, while the XC90 Volvo Ocean Race includes 3.2, D5 and V8 models.

Both models will be offered in a choice of two exclusive Volvo Ocean Race colours: Ocean Blue or Electric Silver.

The Volvo Ocean Race XC90 model uses unique-design, six-spoke 18-inch alloy wheels in Silver stone/Diamond cut with Ocean Blue body finish, or Light grey/Diamond cut with Electric Silver finish.

The XC90s bright chrome outer air intake, side window trims and tailgate mouldings are compli-mented by silver-painted aluminium roof rails, while alloy-look front and rear skid plates emphasize the adventurous nature of the car.

Inside, the XC90 Ocean Race model's leather seats, in Soft Beige or Off Black, utilise special cross-stitching and are complimented by unique door panels, along with brushed aluminium inlays in the glove compartment, rear tunnel and centre console.

The XC70 Ocean Race features unique 17-inch seven-spoke alloy wheels, colour-matched like the XC90 Ocean Race with Ocean Blue or Electric Silver external finish.

Exterior highlights on the XC70 include bright chrome side window trims, silver painted aluminium roof rails and front and rear skid plates.

The XC70 Ocean Race interior also features cross-stitched leather upholstery in Soft Beige or Off Black, unique Ocean Race door panels and tread plate, and a cross-stitched luggage area cover with a brushed-aluminium cassette bearing the VOR emblem.

Both XC90 and XC70 Ocean Race models also feature special VOR badging on the front guards.

Pricing

XC70 3.2 VOR - $61,200

XC70 D5 VOR - $63,200

XC90 3.2 VOR - $73,200

XC90 D5 VOR - $76,200

XC90 V8 VOR - $89,200

But the arrival last week of the Lancer Ralliart is a bellwether of things to come from the importer.

Mitsubishi Australia executives believe the Lancer Ralliart will send a strong performance message to enthusiasts and enhance a lineup that already consists of the Lancer Evo, Colt Ralliart and soon a Triton Ralliart.

The company is also looking at the possibility of a Outlander Ralliart but more work is needed before it becomes part of the lineup.

In Europe Mitsubishi has just announced that the 2.2-litre Di-D turbo-diesel Outlander, an engine still under consideration locally, will soon get the Evo's SST six-speed gearbox.

On the back of an energised Ralliart business, Mitsubishi Australia present, Rob McEniry, is looking to the future, with the prospect of a bigger commitment to local rallying.

McEniry admits competition is a key part of Ralliart's future, "but not just yet".

"We'd love to," he says.

"Where we can we support some privateers but it's very low key.

"But we'd like to get back to being a little more up front about it.

"But to do that you really have to put a team together and get sponsors and a team."

McEniry believes a performance side of Mitsubishi's business "is very important".

"That's what attracts people and it certainly acts as a halo for the brand," he says.

McEniry is confident he can sell 3000 Ralliart models a year.

Dealers are confident too.

There are 80 TMR dealers nationally, up from the original 27 at launch.

The arrival of the Evolution has spurred interest.

The company's manager, product strategy, Chris Maxsted, says the $71,690 Evolution MR sedan has become hot property, selling out until next month.

"It's running ahead of our plan," Maxsted says.

Maxsted says he expects to sell about 150 Lancer Ralliarts a month, against about 150 Subaru WRXs and 200 Golf GTis.

In the short term, McEniry sees exchange rates and the slump of the Australia dollar as critical to the car business.

"I think the market will take some price increases and I don't think that's a bad thing as the market has taken some hits with specifications and pricing," he says.

However, he has ruled out de-specing cars to achieve competitive pricing.

"Quite the contrary, at least for us," he says.

As an importer, Mitsubishi is tracking well this year despite the recent new car slump.

It has an overall market share of 6.1 per cent.

"We have been well ahead of the market for most of the year and we expect to stay well ahead of the market," he says.

"We are lineball with 2007, just a couple of hundred units off and considering we had 5000 380s in the '07 figures, things are pretty good."

A new 370Z is on the way and will get its first public airing at next month's Los Angeles Motor Show.

As these photos show, the car is more evolutionary than revolutionary and remains faithful to the previous coupe's styling.

However, Nissan's designers have managed to make the car more contemporary and aggressive with flare wheelarches and a C-pillar kink through the rear side window.

The chunky vertical chrome door handles carry over and at the back the deep-set hatch is more sculptural and has an integrated spoiler.

At the front, the headlights give the car a dramatic look and are now a major focal point of the new Zed's styling.

In addition to their new zig-zag shape, the headlights are believed to use the latest-generation LED technology.

Inside there are lashings of leather, scalloped sports seats and deeply recessed gauges that evoke the dashboard styling of the original 240Z.

Nissan Australia spokesman, Jeff Fisher, says the car is expected to go on sale here mid-next year.

"The Zed is iconic," he says.

"It was the car that symbolised Nissan's return to health years ago and it is a strong favourite with buyers."

Nissan Australia sells about 60 a month and Fisher expects sales to lift with the new car.

"Given that it's now a five-year old car, it's still selling well," he says.

Although specifications are yet to be determined the 370Z will get reworked version of the VQ35R 3.5-litre V6, bumped to 3.7-litre with a lift in power and torque.

The engine is tipped to developing around 246kW and like the current car, drive the rear wheels.

Like the current car, both Touring and Track models will be available.

The car is shorter than the current model but sits on a wider track, using double wishbones up front and a multi-link rear suspension.

Brembo brakes, as well as 18-inch and 19-inch wheels are also expected to be part of the 370Z's arsenal.

Nissan is believed to have put the 370Z on a crash diet too, shedding weight in an attempt to deliver a quicker and crisper handling car.

It has used the famous Nurburgring in Germany to hone the car's handling up to the limit.

The coupe, codenamed C53D, arrives first, followed by the Roadster convertible.

Although unconfirmed by Nissan Japan, there are reports the car will be available with a 4.5-litre V8.

With sales down 25 per cent this year on the back of the fallout from the new luxury car tax threshold and now the global and local economic situation, Mercedes is hoping the facelifted M-Class will reinvigorate interest in its off-roader.

The five-model lineup remains unchanged, starting with the $81,000 ML 280 CDI and rising to the stellar $167,500 ML 63 AMG.

Prices have shifted slightly, up $255 to $3022 depending on the model but equipment upgrades make up for the differences.

Apart from more equipment, the big wagon gets a distinctive remake of its front end and revised rear. Larger exterior mirrors complete the exterior makeover.

Inside there is a new four-spoke multi-function steering wheel with standard shift paddles, new trim, redesigned seats with four-way lumbar support as well as the option of new two-tone dashboards.

There are also new wheels _ 18-inch alloys on the ML 280 CDI _ with the option of 17-inch wheels for off-roading, as well as 19 and 20-inch combinations.

Mechanically the car remains unchanged with the same V6 petrol and diesel engines and V8s as previously.

The latest generation of Mercedes-Benz telematics system has been improved with an integrated iPod connection with steering wheel controls and displays on the instrument panel and centre console.

A premium 12-speaker Harman Kardon surround-sound package with an output of 610 watts is $1600.

The range opens with the 140kW/440Nm 3.0-litre V6 turbo-diesel ML280 CDI, which gets an upgraded audio system with a colour monitor and Bluetooth.

The 3.0-litre turbo-diesel develops 140kW at 4000 revs and 440Nm from 1400 revs and returns 9.6 litres/100km.

The 3.5-litre V6 petrol ML350 and 3.0-litre V6 diesel ML320 CDI boast the latest voice activated COMAND APS system, which adds navigation, an SD card slot and 4GB hard-disc.

The 3.5-litre V6 develops 200kW at 6000 revs and 350 Nm between 2400 and 5000 revs, returning 11.7 litres/100km.

The ML 320CDI shares the same 3.0-litre V6 as the 280 but develops 165kW and 510Nm.

Moving up to the 5.5-litre V8 ML500 and buyers get a wood and leather steering wheel, sunroof and 20-inch alloys.

The ML500 delivers 13.4 litres/100km.

The range-topping ML63 AMG carries over the 6.2-litre petrol V8, while returning 16.5 litres/100km.

The ML63 develops 375kW at 6800 revs and 630Nm at 5200 revs.

In keeping with its AMG heritage the big V8 gets a more muscular front end treatment and larger grille.