Two special edition models are being launched by smart. The smart fortwo nightrun combines the entry level pure trim with elements of the Brabus high performance version. Powered by a 74 bhp Brabus engine, the specification includes 16 inch alloy wheels, sports exhaust, leather steering wheel with paddleshift, air conditioning, fog lights, and glass roof. Price is £10,425.

The smart fortwo truestyle is based on the 61 bhp version of the fortwo coupe and cabrio. Available in pure trim, the specification includes an exclusive metallic paint colour, ruby red, and, er, that's about it. Prices are £7,495 for the hardtop and £9,240 for the cabrio.

After years of missed targets, Chrysler finally has a hit on its hands. The company is increasing production of the 300C saloon in North America and will add a production facility in Europe.

Chrysler has signed a contract with Magna Steyr in Austria to manufacture both left and right-hand versions of the model for Europe (the company already assembles Voyagers and Grand Cherokees for Chrysler). The 300C is basically a rebodied Mercedes E-Class with a V8 petrol engine and has captured the imagination of the American public - Yankee swagger plus European engineering seems to be the message. As the European market for V8 petrol engines is disappearing faster than spring snow, a diesel 300C will appear in late 2005.

Proton, the struggling Malaysian manufacturer, has announced that it will start assembling Volkswagens for sale in Malaysia and other markets in South East Asia.

The plan is to assemble 15000 Volkswagens from imported kits in 2006, with sales increasing thereafter. It is hoped that VW will increasingly use components from local suppliers rather than importing all the parts. The attraction for VW is that Proton has a strong dealer network in Malaysia, which has traditionally been one of the most protectionist car markets in the world.

Both companies are stressing that there will be no cross-shareholdings, but a long-term deal transfer Proton to VW control cannot be ruled out. Proton has no long-term future as an independent manufacturer and there must be some Malaysians envious of the progress Skoda has made under VW control.

What would you imagine to be the fastest production saloon car in the world? BMW M5? Bentley Turbo? Apparently not - that honour belongs to a 2.0 litre version of a humble family saloon.

Of course, it helps that the humble family saloon in question is a Mitsubishi Lancer. The latest, most extreme version ever (and possibly forever), boasts an astonishing 405 bhp - surely the only production car ever to boast more than 200 bhp per litre. The so-called FQ-400 version (400 for approximate horsepower, Q for Quick and F for, well, we'll leave that adjective to your imagination) has a top speed of 175 mph, a figure only bettered by specially tuned models from the likes of AMG or Alpina. Its acceleration time of 3.5 seconds to 62 mph is in a class of its own - even the Ferrari Enzo takes 3.65 seconds.

The price is also rather extreme for a 2.0 litre - £46,999. However, that does include a three-years/36,000 mile manufacturer's warranty, which is impressive for a car with almost the same output per litre as a 1990s Formula One car. Remember, though: if you use its full potential on a racetrack, your dealer is not going to be impressed if you then try and claim for a blown engine.

  Jaguar Sees Losses Until 2007

Luxury car brand Jaguar will lose money for two years before breaking even in 2007, its chief executive has told the Financial Times. Joe Greenwell said losses will continue at Jaguar, owned by Ford, despite plans to shed 1,150 jobs at its main plant in Coventry.

"We are losing hundreds of millions of dollars," Greenwell was quoted as saying on Tuesday. "Frankly, the company is unsustainable and unviable at these levels."

He said he would listen to unions' ideas on how to avoid job losses, but warned: "We are still of the belief that our strategy is the right one."

Jaguar announced its cost cutting plans last month. It said it would stop Formula 1 motor racing at the end of the season. Ford bought Jaguar in 1989 for 1.6 billion pounds. Despite sales growth and high quality levels, Jaguar has been unable to keep pace with larger rivals in the premium car sector.

  Fiat Cuts Operating Loss

Fiat has posted a narrower third-quarter operating loss, but its core car-making unit has fallen short of forecasts and "remains a concern" for the group's CEO.

More lively sales of tractors and trucks helped Fiat pare its operating loss to 97 million euros (67 million pounds) from 285 million a year ago. A Reuters poll of 11 analysts gave a median foreacast of a 106 million euro loss.

Fiat Auto, which makes up some 42 percent of group sales, made a loss of 270 million euros against 314 million in the third quarter of 2003. Analysts had expected the 105-year-old carmaker to lose 250 million euros.

Fiat Chief Executive Sergio Marchionne said on Thursday he was "relatively confident" the component-to-combine harvester group would reach its target of breaking even at operating level this year, after booking a nine-month loss of 237 million euros.

But the picture was still grainy at Fiat Auto where some new models are lagging targets and older cars are under heavy price pressure as carmakers battle in a sluggish European market.

"Reaching a small operating loss in 2005 (for Fiat Auto) remains our biggest challenge going forward," Marchionne told a conference call, but said he would have to wait until the end of the year to give clearer guidance for 2005.

He expected Fiat Auto, which dragged Fiat to a record loss in 2002, to narrow its losses in the fourth quarter.

New, more expensive products helped tractor unit CNH Global and truck maker Iveco to shine. Strong markets should help them boost profitability in the rest of the year, he said.

CNH's third-quarter operating profit more than tripled to 90 million euros while Iveco posted a profit of 76 million euros from a loss of 2 million a year ago.

Cars Selling Slowly

In unit terms, Fiat's car sales rose 11 percent year-on-year in the third quarter but some new models are lagging targets. Since September 2003, Fiat has sold 67,000 Lancia Ypsilons against a sales target of 80 to 100,000 a year. So far in 2004, it has sold 49,000 of its mini-MPV Fiat Idea against a target of 100 to 120,000.

Chief Financial Officer Luigi Gubitosi said two thirds of the improvement in Fiat Auto's operating line was due to higher and more profitable sales in the booming Brazilian market. But investors and analysts said the Fiat Auto result was not as bad as it could have been and Fiat shares outperformed other European autos stocks to close 2.8 percent higher at 5.72 euros.

"Auto is slightly below expectations but it's still not too bad. They've made progress and that's something," said a car analyst in Milan who declined to be named. Analysts also welcomed the fact that Fiat's inventory was stable at 307,000 units.

Marchionne, who does not hold back in criticising the way Fiat Auto has been run for decades, said former BMW marketing whizz and Rolls Royce CEO Karl-Heinz Kalbfell would take over the underperforming Alfa Romeo brand in January.

Alfa sales have fallen 7 percent so far this year. Fiat's third-quarter group net loss widened to 554 million euros from 84 million a year ago, when the bottom line got a 781 million euro boost from the sale of its aviation arm Fiat Avio.