Mustang fans will rejoice over the return of the 5.0-liter Mustang, expected to be unveiled at the North American International Auto Show in Detroit next month. The new 5.0-liter V-8 is derived from Ford's “modular” V-8 but boasts a number of engineering improvements, most notably Twin Independent Variable Camshaft Timing (Ti-VCT), aluminum four-valve-per-cylinder heads and composite intake manifold.

The new engine delivers 412 horsepower and 390 ft.-lbs of torque while offering improved fuel economy over the previous model. With the six-speed automatic transmission, the new 5.0-liter should get an estimated 25mpg highway and 17mpg city, according to a Ford press release.

Ford says that it is making other improvements to the 2011 Mustang including better handling, reduced noise and vibration and additional chassis stiffening for the convertible. Ford will also include Electric Power Assisted Steering which can be tuned for specific vehicle applications and offers quicker on-center response and reduced effort at low speeds.

Ford had the pony and muscle car markets to itself for years after Chrysler and GM abandoned their own offerings. Now that the Chevrolet Camaro and Dodge Challenger are back, competition is heating up and product improvements are coming faster. Nothing but good news for consumers.

The fruits of Fiat's product development plans for Chrysler won't begin hitting the streets for about year so America's number three car maker doesn't have a whole lot to show at the upcoming Detroit auto show next month. Chrysler won't even be holding a press conference during the press previews, a move that is puzzling industry observers. The Detroit News reports that Fiat does plan to show an electrified Fiat 500 and a Lancia Delta tricked up to look like a Chrysler.

This is a bit ironic. Fiat killed Chrysler's ENVI program which was developing prototype EV vehicles, although it did keep some EV engineering research going. And while a Lancia-based Chrysler would be an interesting exercise, there are no immediate plans to produce such a car. In fact, the company's long term plans, as revealed in November, call for some future Lancias to be based on Chrysler platforms, not the other way around. (Fiat-based Chryslers in the compact and mid-size segments begin arriving here further down the road, in two to four years. And, sadly, last year's stunning Chrysler 200C concept car does not appear anywhere in the company's future plans.)

Watch this space for reports from the North American International Auto Show press previews January 11 and 12.

Car shows are all about looking at, touching, drooling over, kicking the tires and stealing the radio knobs from an array of new cars on display. Everything but driving them. A few years ago Chrysler added a ride-along experience on an indoor track at the Chicago show and last year the Detroit show featured a similar track for eco-friendly rides.

GM hopes to take things a step further by allowing show goers a chance to actually drive select models on city streets in downtown Detroit. The Detroit News reports that the car maker is negotiating with convention center and city officials to make this happen. GM believes that a short test drive will persuade buyers to consider the auto maker's products when they make their next purchase.

Given the lousy weather Detroit experiences in January and the traffic congestion around Cobo Hall, one wonders if such a move is well advised, but, if approved, the program no doubt will be quite popular with attendee.

What could possible go wrong?

--M.D.

Ford confirms that it is on the verge of announcing the successful sale of Volvo to Chinese auto maker Geely. According to a Ford press release, all substantive terms of the sale have been settled and the final deal will be signed in the first quarter of 2010 after financing details and final government approvals are secured.

The announcement went on to say that Ford and Volvo would continue to cooperate in key areas but that Ford would retain no ownership interest in the Swedish car maker. Presumably, such cooperation would involve technologies related to auto safety and chassis development.

Chinese car makers have found it difficult to break into the U.S. and European markets. This deal will give Geely the toe hold it needs to be a presence in these important markets. It will also gain access to automotive safety technology, an area that has been a distinct weakness for Chinese car makers.

--M.D.

The continuing soap opera that is the SAAB sale . . . uh, continues. Hot on the heals of GM’s announcement that it was giving up on trying to negotiate the sale of SAAB, the Dutch car maker Spyker, which had the last offer on the table, said they’ve thrown down a new offer. Without giving specifics, Spyker says it has improved its lie vis-a-vis last week’s rejected deal.

Meanwhile, GM says that it has received several inquiries since last week’s Spyker deal fell apart and that it is currently evaluating those inquiries.

Please remain seated with seat belts fastened until the aircraft has come to a complete stop.

--M.D.

After several failed attempts to consummate the sale of its troubled SAAB division, General Motors has apparently thrown in the towel and will simply let the brand die a quiet death.

Or will it?

Rather than just turn out the lights and lock up, Automotive news reports that GM will probably liquidate SAAB’s assets, selling them for whatever it can get on the open market. China’s BAIC has already snapped up the tooling for the SAAB 9-3 and 9-5 and it’s likely that the rest of the company’s assets will end up in Asia, too. Whether that means the brand will live on remains to be seen. A Chinese buyer might just use the tooling and technology to build similar cars under its own brand.

But wait, there’s more.

Motor Trend says that the Swedish government is meeting with GM officials to make a last minute plea to keep the brand alive. If true, one has to assume that the Swedes are prepared to bring bags of money to the talks because that’s what it will take to change GM’s position.

Should we care? SAAB’s sales in the U.S. have never been more than a blip on the charts. To call it a niche manufacturer would be an overstatement. Its cars were quirky, maybe a little innovative but not particularly influential. Buyers of premium euro-cars aren’t really looking for quirky these days.

SAAB may have suffered from GM’s ineptitude, but it might have had trouble surviving in the modern automotive world, anyway.

--M.D.

This week Volkswagen introduces the Amarok, a sporty, mid-size pickup truck intended for a number of markets around the globe but not the United States.

The Amarok is patterned after the Ford Sport Trac with a four door cab and short cargo box sitting on a full frame chassis. Powered by a 163 horsepower four cylinder diesel, the Amarok is rated to carry 2300 pounds and tow 5600 pounds. Built in Argentina, it will be sold in South America, Australia, Asia, Africa and certain European markets. Volkswagen has no plans to send the Amarok to the United States.

Why not? Why bother.

Dominated by full-size pickups from Ford and GM, foreign competitors have had limited success cracking the American truck market. Volkswagen’s own experience with the Rabbit pickup in the late 1970s and early 80s wasn’t exactly game changing. The company’s plans for world domination of the car market will have to include expanding its presence in the United States and that means moving into new segments here. But it can do that without venturing into the pickup market, a conclusion that it seems to have come to itself.

--M.D.

Automotive News reports that the research firm Compete, Inc., which compiles data on online automotive shopping trends, has found that Ford seems to be closing the gap on top-ranked Toyota. Ford has a long way to go before it catches up with Toyota in actual sales, but apprently more and more buyers are looking at Ford when shopping for new cars. Edmunds.com also has found that shoppers are increasingly stopping at Ford’s web site to take a look.

That increased interest among shoppers may be translating into sales, too. Toyota’s sales lead over Ford has shrunk considerably during 2009. A series of recalls and fierce competition from the Korean brands have dulled Toyota’s luster while Ford is gaining respect for improved quality and exciting new products (not to mention turning down Federal bail out money).

Toyota’s Bob Carter downplays the importance of being number one. Yeah, right, and politicians don’t really pay attention to polls.

--M.D.

Volkswagen recently announced that it is acquiring a 19.9% stake in Japanese auto maker Suzuki, adding to the veritable food court of brands under its wing. At a time when other manufacturers are scrambling to pay the bills, why is Volkswagen going on a shopping spree?

Probably because it is a good time to buy and because this deal makes sense for both parties. Volkswagen is sitting on a pile of cash and is anxious to expand its market share across the globe and unseat Toyota as the world’s biggest car maker. China and India are, and will continue to be, the fastest growing car markets on the planet. VW is already strong in China while Suzuki practically owns the Indian market. Combined, they could become a juggernaut in these all-important markets.

Suzuki knows how to build small cars for emerging markets but needs access to “green” technologies to meet increasingly stringent environmental regulations, technologies at which VW excels. VW also has a high profile and credibility in the U.S. market, something that Suzuki lacks. An association with Volkswagen could get American buyers to take Suzuki more seriously.

A win-win for both.

--M.D.

Reuters reports that Detroit’s rush to bring out new small cars may lead to a glut in the market place. American auto makers will need cars such as the Ford Fiesta and Chevrolet Cruze to meet more stringent CAFE standards but buyers already have plenty of choices which means these new models will face stiff competition and profits may be elusive.

That may be true, but Detroit needs to be competitive in this segment. Gasoline is selling for well below its 2008 peak, so the winners in this segment will have to offer more than just high MPG ratings. By all accounts, the Fiesta and, to some extent, the Cruze are more exciting to drive than the typical Asian econo-box and have more distinctive styling, to boot. Those factors combined with unfavorable currency exchange rates for the Japanese could give the home team the advantage. Moreover, with the Korean brands nipping at Japan’s heals, Toyota and Honda may have more to fear from a small car glut than Detroit does.

--M.D.

GM and Chrysler are said to be taking a second look at their decision to close dealerships in the wake of their Federal bailouts and subsequent bankruptcies. The car makers insisted that the process is necessary to maintain profitability. Dealers who have been marked for closing maintained that the process has been unfair, arbitrary and shrouded in secrecy.

The two manufacturers are offering to enter into binding arbitration with dealers but dealers aren’t satisfied with the discussion points that would be part of those negotiations. Meanwhile, Congress is debating measures which would force GM and Chrysler to reinstate dealers who were axed. The car makers say they’ll withdraw the arbitration offer if such legislation passes.

--M.D.

The second and final press day of the Los Angeles Auto Show isn't over yet, but all the major manufacturers have had their chance to shine. Today, there were three presentations that merited a lot attention--one from Hyundai, one from Buick, and one from Subaru.

The day's festivities kicked off with the Audi A3 TDI being named "2010 Green Car of The Year" by Green Car Journal. Hyundai then got things going with the day's first manufacturer press conference, at which it unveiled the 2011 Hyundai Tucson.

Buick was next, and journalists finally got to see the all-new Buick Regal in person, as well as a sneak peek at an artist's rendering of an upcoming Buick compact sedan. Subaru then followed with the introduction of the WRX Limited Edition, WRX STI Special Edition, and the Hybrid Tourer Concept. Along with the unveiling of the concept, Subaru said it will have a hybrid boxer engine to market by 2012.

Beyond that, it was a quiet day in Southern California. Fitting, perhaps, for the final auto-press day of 2009. See you in Detroit.

The first day of the Los Angeles Auto Show is just about to wrap up, and it's been an interesting one. Today's themes have been alternative fuels, fuel economy, and surviving the economic downturn.

The day got off to an unusual start with General Motors Vice Chairman of Marketing Communications, Bob Lutz, filling in for ousted GM CEO Fritz Henderson at the keynote speech during breakfast. Other than expressing sadness over Henderson's departure, Lutz would not talk about Henderson leaving, and he stared down the one journalist who dared ask about it. After that, the real day's work began.

Much of the focus has been on Chevrolet's Volt extended-range electric car, but Chevy also showed off the U.S. version of its compact Cruze four-door sedan, which will replace the Cobalt. Volkswagen modeled a refreshed New Beetle and an urban runabout concept, while Toyota took the wraps off its next Sienna minivan.

Other intros of note included the much-awaited Mazda 2 and U.S.-spec Ford Fiesta small cars, as well as the 2011 Hyundai Sonata and 2011 Kia Sorento SUV. The remaining automakers on the schedule either showed pie-in-the-sky concepts or gave the American media its first look at cars that originally debuted earlier this year in Frankfurt.

What will tomorrow bring? Check back in the late afternoon Central time to find out.

I am about to trade 50 degree weather for 70 degree weather--that's right, I will be spending the next two days in Los Angeles, bringing the Zazhub community any and all interesting news of note from the LA Auto Show. So far we know that the 2011 Ford Mustang, 2011 Ford Fiesta, 2011 Audi A8, and 2011 Infiniti M will be among the new-car reveals. As we get more news, we'll be sure to share it, so please keep checking back here!