Gas prices, global warming, and the economy are making smaller, ecologically sound vehicles more appealing, but traditionally downgrading in size has meant a downgrade in quality and features also. Is bigger always better? Ford says not necessarily. Next summer the Ford Fiesta, gone from the American market since 1980, is making a comeback and it's coming with a serious upgrade in style, performance, and high class details.

Now of course the Ford Fiesta is not a luxury car. It's not meant to be a luxury car. Its price-point is going to start somewhere under $15,000. But it seems worth sharing here anyway, especially as a 'small splurge,' since Ford has made a point of designing this car to appeal to those with more luxurious taste. The idea is that having a comfortable car full of useful features, solid workmanship, and cutting-edge technology doesn't necessarily have to be expensive, enormous, and gas-guzzling.

Now in the interest of full disclosure I am part of the Fiesta Movement, which might lead you to think I'm biased but really just means I know what I'm talking about because I've been driving one of these cars around as part of my life for the last 4 months. See the gallery below for photos and features (or see photos on Flickr) and then find out when and where you can test drive one and decide for yourself what you think at fiestamovement.com.

Getting our hands on the out-of-production Ford GT is cause enough. We wouldn't need any more justification. We'd need the cash, but not the justification. But just in case, the Ford Motor Company and RM Auctions are offering up a pair of early production Ford GTs to benefit the Juvenile Diabetes Research Foundation. The pair – including the sixth example produced, in red with white stripes, and the seventh, in white with blue – will be offered at the Meadow Brook and Monterey auctions respectively, which are both coming up in August. Each example is expected to fetch somewhere in the $150,000-$200,000 range, so if you've got the cash on hand and were looking for another excuse, here it is.

No matter what state the economy is in, ten million is an awful lot to spend on one single car, so it had better be one exceptional piece of machinery to be fetching that kind of price. Fortunately the 1965 Shelby Cobra Daytona Coupe is just such a machine: the very first American car to defeat Ferrari in a world championship racing series in Europe.

The story goes back to the summer of 1963 when, at the eleventh hour, Enzo Ferrari called off a deal that would have given Ford 50% ownership in his company. Dejected and vindictive, Ford set out to beat Ferrari at its own game, and this is the car that made it happen. Based on the iconic Shelby Cobra roadster, the Daytona coupe featured a specially-designed aerodynamic body to give it an extra 25 mph of top speed. With a big-block, racing-tuned Ford 427 V8 under the hood, the Daytona was fast enough to beat the Italians, clinching the FIA GT title in France in 1965, and bringing the glory home to America. This beautifully restored piece of automotive history is anticipated to shatter existing records with an expected price of $10-15 million when it goes under the hammer at Indianapolis on May 15 at the Dana Macum Original Spring Classic, so stay tuned to see the Shelby Daytona make history yet again.

Even though Wall Street had projected Ford's sales for the fourth quarter to be $26.3 billion the American auto company squeaked out a sales figure of $29.2 billion in the last three months of 2008. The share loss of $1.37 compared to last year's fourth quarter was only seven cents over the expected loss which isn't bad considering all the bleak projections surrounding national auto companies. Both General Motors and Chrysler took federal aid, $13.4 billion and $4 billion respectively, but Ford rescinded it's request for $9 billion stating their cash would last through 2009. When it comes to surviving a recession in the auto industry you better be 'Built Ford Tough'.

Ford Motor Company and Fender have come together to create a very cool way to celebrate a love for both music and mustangs: the Ford Shelby GT500KR Stratocaster guitar. Limited to just 100, the guitar features the Colby logo, Shelby hood stripes, a handpainted body graphic, "Shelby" and "GT500KR" mother of pearl inlays at the 7th and 12th frets, and the hardshell case that comes with it is hand-embroidered with Ford and Shelby graphics. Each guitar is numbered, with the very first one (#000) having been auctioned off to benefit the Juvenile Diabetes Research Foundation.

The remaining guitars are available for pre-order now and will be shipped sometime mid-April. $5600

Ford Motor Company has begun shopping around its Premiere Automotive Group, consisting of Land Rover, Jaguar, Volvo and formerly Aston Martin. The news comes as no surprise as rumors floated about indicating Ford's interest in selling pretty much anything in its stable at the right price, though this time around, the rumors are accompanied by news that Ford has retained Goldman Sachs and Morgan Stanley to find a buyer.

Ford reportedly broke off talks with Fiat recently regarding the group, though now it appears that potential suitors include Renault, David Richards (new Aston owner), and David James, who acquired the rights to manufacture a car based on smart roadster components and designs.Rumors also abound regarding BMW's interest in Volvo as it seeks to add a fourth brand to its lineup, supplementing BMW, MINI and Rolls Royce.

[Source: AutoIndustry.co.uk]

Autoblog shot us an e-mail about this fragrant little story, and frankly, we're surprised this product didn't come around earlier. Estee Lauder's Aramis division has created a fragrance that mustang owners will no doubt want to keep in their glove boxes -- Mustang, the new fragrance for men, set to launch in July.

The Ford Mustang joins the ranks of brands teaming with the fragrance designer for cross-promotion purposes, including Donna Karan, Tommy Hilfiger and Coach. Their marketing folks no doubt had a meeting as well, because the fragrance is described as "bold, daring and legendary," words Ford's marketing people also associate with the vehicle.

The bold scents are lavender, ginger and lemon, while the daring is pipe tobacco and cedarwood. Legendary, represented by amber, fir balsam and patchouli, finishes off the scent.

The base model of the fragrance, so to speak, will be the cologne and aftershave, both of which will start at $20.

[via Autoblog.com]

Jaguar die-hards scoffed at the X-type when it came out, seeing it as the automaker's attempt to woo drivers with a Cadillac bank account to the high-end brand. Like any automaker's foray into cheaper waters, the volume helped the bottom line for Jaguar, but slumming it may have done damage to the brand. Those die-hards may be in luck -- it seems that the automaker is considering axeing the X-type from its lineup.

Jaguar introduced the X-type in 2001 to attract the typical BMW 3-series owner, but stuffy styling, a Ford platform and quality issues held the model back from breaking the 100,000 unit/year barrier. Despite the drawbacks, the model accounts for as much as 60 percent of Jaguar's sales depending upon the market. As Jaguar plans its future, it may axe the X-type, despite the model's impact upon the automaker's financial success.

The move comes as Jaguar aims to move back upscale to a lower volume, higher profit situation, which it may be pursuing in order to be more attractive to would-be investors should Ford decide to put Jaguar on the bloc k. Instead of the X-type, Jaguar dealers will rely upon the XF, the S-type's replacement, for its sales. More comparable to a 5-series or Mercedes E-class sedan, the XF as the entry level vehicle should move Jaguar back up the ladder perception-wise. Other new models, such as the XK, will also be important as Jaguar seeks to come back from its slump.

[Source: The Age]

Looking to cut its losses after a year of record losses, Ford Motor Co. has sold luxury brand Aston Martin back to the UK via a group of investors led by auto-racing champion David Richards. The Aston Martin brand made up a small portion of Ford's luxury group, which includes Jaguar and Land Rover, as well. Although Ford said it expected Aston Martin to make up 1/3 of their luxury sales when they decided to promote the brand more heavily over five years ago (they have owned full interest since 1994), it hasn't come close. Sales of the luxe sports cars make up less than 1% of the automaker's global sales volume. The selling price was $848 million, as the total value of the unit is estimated to be $925 million and Ford is retaining a $77 million stake.

It's Barrett Jackson time again. The January auction in Scottsdale, Arizona always brings out exciting vehicles, often vintage or celeb-owned cars but our siblings at Autoblog report that one of Ford's 75th Anniversary Deuce convertibles will be auctioned off January 16 or 17, with the proceeds going to the Juvenile Diabetes Research Foundation. The snazzy car was constructed by Hot Rods and Horsepower and has a 32-valve 348 V8, custom leather interior with 75th Anniversary logos in one of HR&HP's replica all-metal '32 Ford Dearborn Deuce bodies. The car has a retail value of $250,000.

Other hot cars at the auction include CNN's Warrior One, a 1993 Hummer used by embedded journalists, a 1930 Dusenberg J, and the "Last" Corvette, a 1967 Coupe which was the last C-2 series Corvette ever built.