According to Motor Trend, Cadillac has been given the green light to start producing a smaller 3-series size RWD sports sedan.

Cadillac's current entry-level model is the CTS, which, although priced to compete with the 3-series, is actually the size of the 5-series. The model above is the STS which is priced to compete with the 5-series, when it is the size of the 7-series.

The propsed model, which will ride on the Alpha platform, will be similar in size to the 3-series, but will be significantly less expensive (think Infiniti G37 price range). Although starting with a sedan the model line could be increased to include a coupe and a convertible.

Due to slow sales, GM will be temprarily stopping production of the Corvette for the week of October 6th. Production will resume the next week, but at a reduced volume of 15 vehicles per hour, down from 18.5 vehicles per hour.

GM has also stated that layoffs will accompany the slow down. 75 workers will be layed off a the Bowling Green facility where the Corvette is made.

 Sales of the Corvette are down by 8.5 percent through August 2008.

Rumour has it that the Europeans will be getting a 3.7L V6 in their FXs. North Americans will have to settle for a regular 3.5L.

The 3.7L unit, which is also found in the G37, produces 330-hp (as opposed to 303-hp in the 3.5L plant). The FX37 will be available with a GT package which includes 20" wheels, all-wheel drive and a 7-speed automatic. The only other package will be an S package which ups the wheel size to 21" and adds Continuous Damping Control.

With fuel economy being an incresingly important selling feature on vehicles, manufacturers are finding ways to improve the numbers on their cars.

By altering the gear ratios on their 6-speed automatic (which is attached to a 4.0L V6), Chrysler has managed to improved the fuel economy of their minivans y about 8%. This works out to about 2 mpg on the road. The numbers are now 17 mpg in the city, and 25 mpg on the highway.