The booming city car...

The booming city car market is about to get even more competitive, with Ford confirming the new Ka will undercut its main rival, the Fiat 500. Starting at ?7,995 for the entry-level 1.2-litre Studio, the city car costs ?105 less than the equivalent 500 and only ?350 more than the outgoing Ka.

Test drivers are evaluating...

Test drivers are evaluating a final flagship for the hatchback range, badged the R36. Powered by the 3.6-litre V6 that debuted in the Passat, the car will offer between 280 and 300bhp. Due on sale early next year, it will hit the road 12 months ahead of the March 2008 debut of the new-look Golf. Prices are still being kept under wraps, although it"s expected the newcomer will cost at least чЈ1,500 more than the current R32, weighing in at чЈ26,000.