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When Audi released the A3 for the 2006 model year, the company took a gamble in introducing a luxury hatchback to the United States without a more traditional sedan option available. American car buyers tend to prefer sedans over hatchbacks and wagons, and buyers in the luxury segment where the Audi A3 resides could easily afford an SUV or minivan if functionality was their main concern.

The A3 wagon has been popular enough that four years later, the luxury compact wagon is still on sale, but Audi has decided that there is a larger compact luxury market than the A3 wagon can capitalize on. Now, Audi is designing a new A3 sedan to capture the part of the market more concerned with looks than hauling capacity, according to Autoblog. Audi has not officially announced an A3 sedan, but the decision makes sense in an American market where anyone looking for a wagon’s roominess can buy a crossover SUV with a higher ride height to peer over traffic.

Because the A3 sedan has not been officially announced, there are no images available yet, but expect the styling to remain very similar to the wagon's.

Because the A3 sedan has not been officially announced, there are no images available yet, but expect the styling to remain very similar to the wagon's.

Audi’s A4 sedan has grown quite a bit over the years, so the German company is currently without a compact sedan. An A3 sedan would fill that gap in the lineup and also give Audi a car without any direct competition from BMW or Mercedes-Benz. The BMW 1-Series is only available as a coupe, so buyers who routinely have more than one passenger will be obviously drawn to the larger A3. Mercedes-Benz’ smallest car right now is the C-Class, which is the same size as the larger Audi A4.

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Hyundai is completely overhauling its model lineup over two years. The company will launch seven new or redesigned models over a 24-month period, starting late last year with the Tucson SUV. Hyundai’s new model rush will continue after the two-year period, with new models planned for the 2012 and 2013 model years too.

The star of Hyundai’s lineup will be the flagship Equus luxury sedan. Like the Genesis Sedan, the Equus will be designed to compete with luxury cars that cost much more. The Equus will be a large car, designed to take on the BMW 7-Series and Mercedes-Benz S-Class, but with a price starting at about $60,000.

Hyundai is planning to add a small sporty coupe, possibly named the Veloster, to the lineup next year. According to Autoweek, the Veloster will be based on the Elantra and will use a 140-hp engine to get 41-mpg. The Veloster will be a two-door hatchback with a small suicide door on the passenger side similar to the ones found on the Mazda RX-8.

2012 Hyundai Accent Verna

The Hyundai Accent will be redesigned in the spring of 2011, and will be based on the Verna small sedan (pictured above) currently sold in Korea. The next generation Hyundai Accent will use an all-new 1.4-liter, four-cylinder engine with 106-hp.

Hyundai’s entire lineup is getting attention over the next few years. The Hyundai Elantra, Azera and Santa Fe will all be redesigned before 2013. Expect all of the new models to follow the design cues of the Sonata and the new Accent. The Hyundai Sonata and Genesis will both receive new engines in the next year, a 2.0-liter turbocharged four-cylinder for the Sonata and a 5.0-liter V8 for the Genesis.

Image via Autoweek.

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2011 Hyundai Sonata

The 2011 Hyundai Sonata is so popular that it’s forcing its siblings out. Hyundai has decided to move the production of the Santa Fe, which was built alongside the Sonata, to another plant so that enough Sonatas can be built to keep up with demand.

The 2011 Hyundai Sonata is built in Alabama, and currently shares the plant’s 300,000 vehicles per year production capacity with the Hyundai Santa Fe. The new Sonata’s popularity has forced Hyundai to move Santa Fe production to the Kia manufacturing plant in Georgia where the Sorento is built, according to Autoblog.

What this means for consumers is that the Sonata won’t be offered with any hefty incentives in the immediate future. With sales of the Sonata exceeding Hyundai’s expectations, the new mid-size car most likely won’t need to be put on sale for a while. Hyundai’s current financing incentive of a 2.9% interest rate for up to 60 months or 3.9% for 72 months will probably be the best deal available on the Sonata this year, so there’s no point in waiting for a better one to come around if you’re looking at the new Sonata. Don’t expect much wiggle room in the price of a 2011 Sonata right now either. With such a popular car, dealers probably won’t be willing to take much off the price.

The 2011 Hyundai Sonata starts at $19,195 and is one of the best-looking cars around at that price, so it’s no surprise that the car is flying off dealer lots.

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Nissan will build a convertible version of the Murano SUV. The Murano Convertible will have two doors instead of the hard-top’s four, and will go on sale sometime next year. There are no pictures available of the Murano Convertible yet, but it was revealed to a group of Nissan dealers this month.

The two-door Murano Convertible will be based on the four-door SUV version shown here.

The two-door Murano Convertible will be based on the four-door SUV version shown here.

The 2011 Nissan Murano Convertible will hardly be unique as a drop-top SUV. The Ford Bronco, Chevrolet Blazer and of course, the Jeep Wrangler, all beat Nissan to the punch by a few decades on that one. The Murano takes a different route than those off-road oriented, truck based SUVs though. It’s designed to be a luxurious, comfortable car for suburban life. The Murano will look more at home at Starbucks than a surf spot.

The 2011 Murano Convertible’s real competition will come from stylish convertibles like the Volkswagen EOS, Volvo C70 and Mitsubishi Eclipse. The Nissan will offer buyers what they’re used to in a crossover: the ride height of an SUV without the trade-offs in gas consumption, handling and comfort, but with the option to drop the top and feel the wind in your hair.

The Murano Convertible will be able to match the convertible competition in the style department too. One dealer who was shown the convertible Murano told Autoweek that the styling was unusual, but that the SUV looks better with the top down than up.

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The Mahindra diesel-powered small pickup truck has finally been officially certified to be sold in the United States. The Indian pickup truck was originally intended to be on sale in America during 2010, but approval from the Environmental Protection Agency took longer than expected.

2011 Mahindra Diesel Pickup

John Perez, the CEO of Mahindra’s U.S. distributor, Global Vehicles USA, said in May that the certification process for the Mahindra diesel pickup was almost over and in about 30 days the company would be able start shipping vehicles to dealerships. Obviously something came up, but the good news for anyone who wants a pickup truck with a 1.3-ton hauling capacity and 30 mpg on the highway is that the Mahindra trucks have been approved for the 2011 model year, according to PickupTrucks.com.

The Mahindra pickup truck will use a 2.2-liter diesel engine, making it the only diesel pickup available smaller than the 3/4 ton full-sized pickups from Chevrolet, Dodge and Ford. Finally, a diesel pickup that can fit into a normal parking space.

Mahindra’s work certainly isn’t over. Beyond the pickup fans who are ready to buy a diesel engine in a small truck, sales might be tough. The company will have to convince truck buyers, many of whom rely on their vehicle for their livelihoods, to trust an Indian company with no reputation in the United States. The Mahindra pickup’s price tag in the low $20,000 range and high gas mileage should help though.

Image via Pickuptrucks.com

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The Kia Rondo has been discontinued, and in its place, Kia would like to sell you a 2011 Sportage small crossover. Most buyers were probably shopping for the more attractive Sportage instead of the Rondo anyway. Kia’s website for the Rondo has the following message: “Thank you for inquiring about the Rondo. As the saying goes, ‘all good things must come to an end.’ But with endings, come new beginnings…Introducing the all new 2011 Kia Sportage.”

The 2011 Kia Sportage.

The 2011 Kia Sportage

An official at Kia told Autoblog that the company has not yet decided whether there will be a 2011 Kia Rondo, but that the 2010 model is still on sale. Kia’s decision to drop the Rondo is probably due to the minivan’s slow sales. Only 14,206 Rondos were sold last year, compared to 28,645 in 2008. Minivans have been losing out to better-looking SUVs for a long time now, so it’s not really surprising that a new mom or dad looking for a family hauler less than $20,000 would pick the Sportage over the frumpy Rondo.

The Sportage isn’t a minivan and doesn’t have a third row of seats, so seating is limited to five. If you need more than that, the Mazda5 is your best choice. With three rows but seating for six, it is less useful than the recently departed Rondo, but it still gives you the functionality of a minivan with its sliding rear doors and a lower ride height than an SUV.

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The $85,000 VW Phaeton will be brought back to the United States. Volkswagen’s flagship large sedan will be brought back to the U.S. at the model’s next complete redesign. The Phaeton is a high-end luxury sedan built to compete with the BMW 7-Series and Mercedes-Benz S-Class, as well as the A8 built by Audi, a Volkswagen subsidiary.

The 2006 Volkswagen Phaeton sold so poorly that VW pulled the car from the U.S. market, but the company plans to give it another try, possibly in 2013.

The 2006 Volkswagen Phaeton sold so poorly that VW pulled the car from the U.S. market, but the company plans to give it another try, possibly in 2013.

The head of Volkswagen’s Dresden, Germany plant where the Phaeton is built says that the next generation of the Phaeton will be sold in the United States, according to Bloomberg. U.S. sales of the Phaeton were stopped in 2006 due to poor sales. Volkswagen has not set a date for the Phaeton’s redesign or its return to the U.S., but a German industry analyst said that the redesign will probably happen for the 2013 model year.

A rear view of the 2006 VW Phaeton.

A rear view of the 2006 VW Phaeton.

The Phaeton has been a polarizing car since its debut in 2002. Audi’s North American Chief Axel Mees was forced to leave the company after disparaging the Phaeton in an interview, claiming that he would never buy it because of it’s Volkswagen branding. Former VW CEO Bernd Pichetsrieder said that a global sales goal of 20,000 units per year was a “pipe dream” and pulled the Phaeton from the U.S. market in 2006.

Images via Volkswagen.

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AAA says that 80 percent of all dog owners take their canine companions in the car for errands and short trips. Because of that, many dog owners add Fido’s comfort and safety to the list of things they consider when purchasing a new car, as well as the convenience of getting the dog in and out.

I can personally attest to the fact that a two-door Volkswagen Golf and a 70-lb Labrador is not a recipe for a fun ride. The windows in the front seat are the only ones that open and to get there from the back, Rosebud needs to bounce off me, the gear shifter, the radio and the steering wheel. As a service to dog owners, AAA has released a list of the best dog-friendly new cars.

The Honda Element is included, of course, with its easy to clean spacious interior and available pet lover’s package.  The Honda Element Dog Owner’s Package includes a ramp, even easier to clean back seat cover and a kennel with a fan and water dish. The Toyota Venza has a similar option package.

Dog Friendly Honda Element Bed and Ramp

Dog-friendly Honda Element bed and ramp

The other cars and SUVs on the list aren’t as tailor-made for canine transport as the Element, but most include accessories like rubber floor mats or a divider for between the front and rear seats, in case you don’t want your dog pinballing around the front seat while you try to drive. The list includes the BMW 3-Series wagon, Volvo XC60, Subaru Forester, Hyundai Santa Fe, Mazda 3 5-Door, Mini Clubman, Ford Escape Hybrid, Kia Soul and Nissan Cube.

Photo via gearpatrol.

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Do you really need 328 horsepower? The Infiniti G37’s power may be nice to have when you’ve just absconded with a dossier and the KGB is hot on your tail. Or, more realistically, when comparing your G37 to the BMW 328i your buddy just bought (with a wimpy 230 hp). If you’re not deep undercover in the world of international espionage, and can deal without a trump card in the ‘mine’s bigger’ game, 328 horsepower is probably more than you’ll ever need.

At least that’s what Infiniti thinks. The company has just added a G25 sedan to its lineup, with a smaller 2.5 liter engine and 218 horsepower. The G25 sedan will be Infiniti’s least expensive car, at $31,825. The 2010 G37 base model costs $34,125, so the G25 represents a significant savings. The G25 will be identical to the G37 in most ways. The only major difference being the lack of a sport package or navigation system as options. The lack of a sport package is understandable, considering that the G37 will still be available with 111 more horsepower. The lack of a navigation system is strange though, since many less expensive, non-luxury cars have optional navigation.

The new Infiniti G25 will be identical to the 2010 G37, pictured here.

The new Infiniti G25 will look identical to the 2010 G37, pictured here.

The Infiniti G25’s engine will be built using the same VQ architecture as the engine in the G37 (and most of the engines found in the Nissan and Infiniti lineups), and will make 187 lb-ft of torque, according to Autoweek.

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Scion is offering low cost lease incentives during August on all three of the brand’s cars. The monthly payments on Scion’s lease incentives aren’t as low as the ones advertised by other brands, but the down payments are much lower. That could help young buyers without $2,000 for a down payment to afford a new Scion. Scion is also offering lower than average interest rates during August, but the deals aren’t as impressive as incentives available on other brands, including parent company Toyota.

The 2010 Scion xD can be leased for $187 a month over 36 months. The xD monthly lease payment is calculated based on a $837 down payment, so if you have more money to put down, your monthly payments may be lower.

During August, the 2010 Scion xB wagon can be leased for $199 a month with $849 due at signing on a 36-month lease.

2010 Scion tC

The 2010 Scion tC sporty coupe (pictured above) is available during August for $256 a month on a 36-month lease. The tC’s lease deal requires a $906 down payment, which makes it less expensive initially than other leases on competitive cars. The 2010 Mini Cooper is available for $199 a month during August, but requires a down payment of $1,803. If you can afford the down payment on the Mini, it will cost you $1,197 less over the length of the lease than the tC.

All Scion models are available with 3.9% financing for up to 60 months for buyers with excellent credit.

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