Toyota to debut new Prius in Detroit

Toyota is planning to unveil a new version of its best-selling Prius hybrid at the Detroit Auto Show in January.

The Japanese automaker has been tight-lipped about details thus far, but previous reports indicate that Toyota is actually planning two new versions of the Prius – one larger than the current model and the other smaller.

"It will be an all-new model with more comfort, better styling and more versatility," Don Esmond, senior vice president of Toyota Motor Sales told the Detroit Free Press. The news source speculated that the "more comfort" description could mean that the larger model will debut at the auto show rather than the smaller one.

Toyota has committed to green technology in recent months, with plans to unveil a number of models over the next few years. The company will debut a plug-in Prius hybrid next year. It's also working on an electric version of its RAV4 crossover.

The company has been working with luxury electric automaker Tesla Motors to develop its hybrid technology. Toyota recently invested $50 million in the small automaker to solidify their partnership.

Drivers interested in purchasing a car may want to consider a used Toyota, as the pre-owned models are less pricy than their newer counterparts. 

Toyota asks judge to dismiss lawsuits

In the latest twist in the Toyota unintended acceleration case, the automaker has asked the federal court to throw out the hundreds of lawsuits it is currently facing, calling them baseless.

The company was forced to recall millions of used Toyotas after it was found that a problem with floor mats could jam a pedal and cause the car to unexpectedly accelerate. Many have speculated that the issue might actually lie with the electronic systems in the car, but Toyota has denied this accusation repeatedly.

The plaintiffs in the class action lawsuit claim that they are filing on behalf of all Toyota owners who have an electric system in their vehicle. The automaker recently stated that this "defies common sense."

"Toyota is confident that its cars provide safe, reliable transportation and that the plaintiffs have no credible claims of loss or defect," said Cari K. Dawson, an attorney for Toyota, in a company statement.

Recent documents in court allege that Toyota knew about the acceleration issue well in advance of the recall and purchased vehicles back from complaining consumers. Those consumers then supposedly signed a non-disclosure agreement that stated they could not talk about the malfunctions.

Nissan planning several electric vehicles

Nissan is going all-in on electric vehicles.

The Japanese automaker has already gained a lot of attention for its Leaf, which will be the one of the first mass-produced fully-electric cars for sale. The company recently announced that it has plans for three more electric vehicles after the Leaf, including a smaller Infiniti model, commercial van and a micro urban car.

"We don't want EVs to be a niche product," said Corporate Vice President Hideaki Watanabe.

The company also unveiled a concept that it stressed was certainly not yet ready for production, but raised a few eyebrows. The "Nissan New Mobility CONCEPT" is a go-kart inspired vehicle that can hit 47 miles per hour and travel 62 miles on a single charge. The company is currently studying uses for the car, like amusement parks and certain cities.

Drivers interested in electric vehicles may want to wait until a few hit the used car market, as the novelty of the technology will likely make them quite expensive for a few years.

BMW recalling vehicles for fuel pump issue

BMW has announced that it will recall more than 150,000 vehicles due to two separate issues related to fuel pumps.

The first notice affects 130,000 used BMWs from the 2007 to 2010 model years. The luxury automaker says that the high-pressure fuel pumps in twin-turbo inline six-cylinder engines could possibly fail, affecting engine performance. The issue could cause the engine warning light to come on or the engine to possibly go into "safe mode," accompanied by a loud tone and malfunction light.

Models in the recall include the 2007-2010 335i; 2008–2010 135i, 535i and X6 xDrive35i; and 2009–2010 Z4 Roadster sDrive35i. Of these vehicle, BMW estimates 40,000 will need entirely new fuel pumps while the rest will just need updates to the vehicle's software.

In a separate move, BMW says there is also a issue with the fuel pump in approximately 20,000 X5 SUVs from 2008. This low-pressure fuel pump is actually a separate part with a different issue than the high-pressure pumps included in the first recall.

Drivers interested in a BMW may want to shop the used car market in order to save money on the luxury vehicle.

Honda expects profits to rise

Honda has revised its initial forecast for the year after surging second quarter profits boosted by significant tax breaks on green vehicles.

The Japanese automaker is currently in a neck-and-neck race with Nissan for the title of Japan's number 2 automaker. Nissan has yet to report its quarterly results, but they'll have to be great to close the gap on Honda, which recently reported that its profit more than doubled compared to the same period last year, taking in earnings of approximately $1.68 billion.

Tax breaks by the Japanese and U.S. governments helped the automaker move more green vehicles. Honda makes a number of hybrids in the U.S., with plans for electric vehicles in the near future. The Insight hybrid was a top seller for the company, along with perennial favorites like the Accord and Civic.

The results were so good that the company has revised its initial projection for the year, now believing it will take in $6.2 billion in total profit rather than $5.6 billion. If the company hits that total, it will be an 86 percent increase over the previous year's total.

Drivers interested in hybrid vehicles may want to wait until they are widely available on the used car market, as the technology is still rather expensive.

Lawsuit brings further allegations against Toyota

Since news broke of the unintended acceleration issues in their vehicles, Toyota has recalled more than 10 million vehicles. While the flaws have certainly done damage to the company's reputation, the hundreds of lawsuits filed in the wake of the scandal may pose more trouble for the automaker.

The recall affected both new and used Toyotas. The various lawsuits were recently combined into one case, which is currently being heard in California.

The Associated Press reports that documents filed in the lawsuit allege that Toyota had prior knowledge of the issues, but made no effort to correct them. Instead, the company supposedly bought back vehicles from any drivers who complained about the issue. In exchange, the company compelled those owners to sign a confidentiality agreement that prevented them from ever discussing the issue in public.

If the allegations are true, they would like cause more damage to Toyota's reputation, which it is working to rebuild. The automaker has yet to comment on the documents.

Drivers considering buying a used Toyota should ensure that the models they are considering have had the proper maintenance in the wake of the recalls. 

Microsoft develops new auto software

In-car technology has become increasingly popular, with software like Ford's Sync allowing drivers to download apps and integrate multiple devices. Microsoft recently unveiled its new auto software that will be used in both Sync and upcoming Nissan vehicles.

Microsoft debuted the new technology at SAE Convergence, a conference dedicated to both the tech and auto industries.

The first iteration of the software, known as Windows Embedded Automotive, was used in the Ford Sync system in 2007. Since then, other automakers including Hyundai and Fiat have licensed the technology for their in-car software.

The software giant claims that the new version allows automakers to use a more advanced graphics display, including 3-D visuals. The company has also vastly improved the speech-recognition technology, adding support for features like responding to text messages via voice commands.

It will take some years for the latest version to debut in actual cars, as the vehicles typically take 18 to 24 months to develop. Microsoft has announced that the Nissan Leaf will be the next vehicle to use the software, although it won't be the latest version that Microsoft used at the show.

In the meantime, drivers might want to try out Sync or a similar technology in their next car. Buying a used Ford equipped with Sync could be a good way for shoppers to save money off the big price tags put on these features when bought new. 

Audi helps charge Volkswagen profits

Volkswagen isn't performing up to past standards, but the company's Audi luxury brand is keeping profits high for the German automaker.

Despite being significantly smaller than the main Volkswagen brand, Audi accounted for nearly half of the company's total profits in the first nine months of 2010, with $3.1 billion of a total $6.6 billion. That's a significant turnaround from just $1.6 billion in 2009. The luxury automaker is currently on track for its best year ever in the U.S., on pace to break the 100,000 sales mark for the first time.

"All indications continue to point toward 2010 winding up as the best year Audi has ever enjoyed in the U.S. market," said Audi U.S. President Johan de Nysschen.

Unfortunately, the automaker got disappointing news this week when a Consumer Reports survey listed many cars in the fleet as having "below average" reliability. Audi had previously been enjoying a big year for awards, with the Audi S4 winning Esquire's Car of the Year award.

The next launch for the company is the A8, a redesign of the company's flagship sedan that's due in November.

Drivers may want to wait until they can buy a used Audi, as they'll be significantly more affordable a few years from now.

Battery company demonstrates 375-mile range on Audi

One of the caveats holding electric cars back from widespread adoption is the range limits that batteries impose. If the claims of a German battery company are to be believed, those problems could soon be a thing of the past.

DBM Energy recently held a road test for reporters to see if their batteries, which are primarily used in forklifts, could be adopted for road vehicles. The company modified a used Audi A2 for use in the test.

The results were somewhat jaw-dropping. Over 7 hours, the Audi A2 was able to travel 375 miles averaging 55 miles per hour. Perhaps even more shockingly, the battery only required a 6-minute charge. At the end of the ride, the CEO of the company, Mirko Hannemann, offered to charge the batteries of reporters' cell phones with the remaining juice.

At this point skeptics might assume that these batteries were highly expensive and years away from adoption. Yet DBM claims that it can manufacture the batteries for cheaper than the lithium ion solutions being used by cars like the Nissan Leaf and Chevy Volt.

If the company eventually does achieve a breakthrough, it could change the future of electric cars. Those interested in green technology may want to hold off on a new car purchase until the range is improved, instead buying a more affordable used car for the time being. 

Fun cars on the cheap

Just because a driver is limited by their budget doesn't mean that they have to settle for a boring car. In fact, shopping the used car market will give drivers years of options when it comes to vehicle selection.

Popular Mechanics recently listed the most fun used cars for under $3,000. These vehicles might not be running as well as they were new, but if buyers can find a model that's in relatively good condition with reasonable mileage, they can get a great deal on some truly enjoyable cars.

The BMW E30 was a high-end luxury vehicle in its heyday, but drivers searching the used car market will now be able to have these vehicles for less than $3,000. That price range typically means that drivers will be targeting cars from the late 80s or early 90s. For many models, finding running vehicles in this condition can be tricky, but BMW has a large number of fans who continue to support the older vehicles and keep them in good condition. Drivers should try to find an E30 with a 6-cylinder engine. If they find an E60i, they should jump on it quick, as these models are rare but offer increased performance.

The Toyota MR2 was a budget vehicle even when it debuted, with specs that, at the time, challenged high-end sports cars with its 145 horsepower. At the time, that was about half of what many Ferraris could produce. These vehicles can't compete with many modern entry-level cars in terms of pure power, but they still have the sports car handling that made the model famous.

When is a Mustang not a Mustang? When it's the Ford Probe GT. This car, built by Mazda and featuring front-wheel drive, was originally slated to be a Ford Mustang. But Mustang enthusiasts couldn't handle a non-American vehicle that didn't feature rear-wheel drive. Still, the mid-nineties Ford Probe is a fun-to-drive muscle car that boasts a 164-horsepower V6 engine.

The news source points out that drivers who don't pay a lot for their car are less likely to worry about it. Still, drivers should be sure that all the proper maintenance work has been performed so that they can avoid buying a lemon. If drivers already have a primary vehicle and simply want a car to fool around in, any of these vehicles could represent an enticing option.