Renault has replaced entry-level Extreme versions of its Megane with a new Generation trim.

The Megane Generation is available with a 99bhp 1.6-litre petrol or an 89bhp 1.5-litre diesel engine. Prices start at £10,995 for the petrol and £12,755 for the diesel version.

However, these prices are valid during the manufacturer?s summer-offer period, which runs until the end of September.

After that, the list price jumps by £3000, although Generation cars will still be £860 cheaper than the discontinued Extreme cars and will be available with generous discounts.

Both models use a five-speed manual gearbox and come with a four-speaker CD stereo with auxiliary input, air-conditioning, cruise and stability controls, hands-free entry and electric windows.

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 Prices for the Infiniti M37 will start at £35,150 and rise to £45,000 for the V6 petrol-powered version of the car.

The 316bhp 3.7-litre BMW 5 Series rival can blast from 0-62mph in 6.2 seconds and has a limited top speed of 155mph. Average fuel consumption is 27.7mpg, while CO2 emissions of 235g/km place it in the top, 35% company car tax band.

Entry-level cars are well equipped with climate control, a seven-speed automatic gearbox, xenon headlights, electric seat adjustment, reversing camera and hard-disk drive for the stereo, although leather upholstery isn't fitted.

Leather comes with the M37 GT, which costs from £37,650 and also adds heated and ventilated seats. Sporty M37 S cars are priced from £39,650 and include four-wheel steering, sports suspension, gearshift paddles, sports seats and larger wheels.

Topping the range are Premium versions of the GT and S for £43,000 and £45,000 respectively. These get an upgraded, 16-speaker stereo, larger hard-disk drive with satellite-navigation and Forest Air ? a climate control system that 'recreates the gentle breezes and subtle scents of an environment known to promote alertness and relieve stress'.

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 Fraud is pushing up the cost of car insurance at its fastest-ever rate, according to the AA.

Premiums have rocketed by more than 11% in the previous quarter ending June 30 ? the biggest increase since the AA British Insurance Premium Index began tracking car and home insurance trends in 1994.

Research revealed that during the past three months the average premium for comprehensive car insurance exceeded £704 ? a rise of 11.5% in just three months.

The amount paid for such policies purchased through price comparison websites increased at an even sharper rate, with a 12% rise in premiums for the same period.

Price comparison sites easier to 'manipulate'
Edmund King, the AA's president, believes price comparison sites have experienced bigger increases because they make fraud easier to commit.

He said: 'It's now much easier to get an insurance quote online. For example, comparison sites can enable dishonest individuals to manipulate information to get a lower premium. Insurers are increasingly charging higher prices to these people to cover the increased fraud risk.

'This quarter's record increase comes on top of previous record rises. For those shopping on comparison sites, average premiums have climbed by an eye-watering 32.8% ? or £193 ? in just nine months. Even those taking the cheapest prices have typically seen them rise by £98.'

Young drivers hit hardest
Premiums for third party, fire and theft cover, often bought by young drivers, climbed by 17.1% on price comparison sites.

Simon Douglas, director of AA Insurance, believes this type of insurance will become increasingly rare, which could result in many young drivers deciding not to insure their vehicles.

He said: 'More and more insurers are withdrawing this type of cover because it is unprofitable. In a few years it could well disappear altogether.

'Under-21-year-olds looking for cover on a price comparison site will find that fewer than half of the companies listed will offer such a quote.'

In 2009, the cost of meeting insurance claims exceeded income from premiums by 22%, which has resulted in the sharp increase in cost to consumers as providers try to fill the void left on their balance sheets.

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 The Vauxhall Meriva is now available with two new turbocharged diesel engines ? a 94bhp 1.3-litre and a 128bhp 1.7.

The 94bhp 1.3 will power the Meriva's eco-FLEX versions. Average fuel economy is 62.8mpg and CO2 emissions are 119g/km. Prices start at £17,570 for the 1.3 CDTi eco-FLEX S version, rising to £18,720 for the 1.3 CDTi eco-FLEX Exclusiv model.

Versions fitted with new 128bhp 1.7-litre diesel are capable of 54.3mpg and emit 138g/km of CO2. It comes with a six-speed manual as standard, compared with the existing 99bhp 1.7, which only comes with an automatic gearbox.

Prices for models with the new 1.7 start at £18,215 for S-trimmed versions, rising to £20,150 for the SE model.

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 BMW will use the 2012 Olympics in London as an opportunity to showcase its revolutionary Megacity car, according to company sources.

Although the production car will be a year away from going on sale, a near production-ready Megacity concept car will take pride of place at the Games. BMW will be the official automotive partner for the 2012 games.

BMW believes the Olympics represent a unique opportunity to educate a huge global audience about the benefits of electric cars, and hopes that having the Megacity figuring prominently will help establish it as a market leader for electric cars.

The Megacity is a four-seat, rear-engined, rear-wheel-drive car, which houses the batteries that power the 100Kw motor underneath the floor.

BMW says it will be bigger than a Mini, but smaller than a BMW 1 Series, and comparatively tall.

To counteract the relatively heavy weight of the car's batteries, the Megacity will have a lightweight carbonfibre cell. BMW has gone into partnership with an American company to set up a carbonfibre production plant in Washington state.

As its name suggests, the Megacity will be a car for urban dwellers. BMW expects the car to have a range of between 100 and 130 miles. It will also have a useable boot, and its flat floor could mean the car will have a flexible seating layout.

The Megacity will be marketed as a premium product under a sub-brand of BMW ? perhaps similar to the 'M' sub-brand it has for its sports models.

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 BMW will use the 2012 Olympics in London as an opportunity to showcase its revolutionary Megacity car, according to company sources.

Although the production car will be a year away from going on sale, a near production-ready Megacity concept car will take pride of place at the Games. BMW will be the official automotive partner for the 2012 games.

BMW believes the Olympics represent a unique opportunity to educate a huge global audience about the benefits of electric cars, and hopes that having the Megacity figuring prominently will help establish it as a market leader for electric cars.

The Megacity is a four-seat, rear-engined, rear-wheel-drive car, which houses the batteries that power the 100Kw motor underneath the floor.

BMW says it will be bigger than a Mini, but smaller than a BMW 1 Series, and comparatively tall.

To counteract the relatively heavy weight of the car's batteries, the Megacity will have a lightweight carbonfibre cell. BMW has gone into partnership with an American company to set up a carbonfibre production plant in Washington state.

As its name suggests, the Megacity will be a car for urban dwellers. BMW expects the car to have a range of between 100 and 130 miles. It will also have a useable boot, and its flat floor could mean the car will have a flexible seating layout.

The Megacity will be marketed as a premium product under a sub-brand of BMW ? perhaps similar to the 'M' sub-brand it has for its sports models.

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 The VW Group and Porsche have begun work on co-developing more new cars, a source has confirmed to What Car?.

The first product of the collaboration is widely expected to be a new 'baby' Porsche Boxster and the Audi R4. The two will share a new steel and aluminium platform, but have sharply different characters as they will be powered by different engines.

The baby Boxster has been dubbed the Porsche 356, and would be mid-engined and rear-wheel drive. It could go on sale by 2012. Power would come from a new forced-induction flat-four engine that is currently under development.

The Audi R4 mid-engined sports car would have the same layout, and likely look similar to the e-tron concept car that was also shown in 2009. Because of its light weight, reports suggest it could deliver sportscar performance even with a relatively small 1.4 turbocharged engine.

Other projects the two sides are said to be working on together include the development of hybrid and electric vehicles.

VW and Porsche merged last October, but even prior to their merger they shared development of the Touareg and Cayenne 4x4s ? a programme that VW estimated saved it one-third of its development costs, and which gave Porsche its most profitable model.

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 Antony Sheriff, managing director of supercar manufacturer McLaren Automotive, says challenging legislation limiting cars' CO2 emissions 'is vital', providing it is 'sensible and pragmatic'.

In a speech titled 'The Golden Age of Green' at the What Car? Green Awards, Sheriff said: 'Do we really need legislation? Absolutely, so long as it is done in a way that promotes innovation, rather than just adds costs, or stifles small, nimble, car companies in favour of the behemoths that can soak up CO2.

'Challenging, realistic and pragmatic legislation is vital. If it is, then the best engineers and designers will benefit.'

Sales of the McLaren's MP4-12C supercar begin next spring. It's a mid-engined, scissor-door two-seat rival for the Ferrari 458 Italia and Lamborghini Gallardo.

It's built around an 80kg, one-piece carbonfibre passenger compartment called a monocell, which keeps car's weight down, therefore making it more efficient. Sheriff insists this kind of innovation will trickle down to mainstream cars in the future.

'There are long-term benefits of innovation in the performance sector ? we fully expect that many of the leading-edge technologies found on the 12C will cascade down to ever less expensive cars as the technology matures.

'But without cars like the 12C, these technologies would never find a foothold. They would be discarded as too expensive. Our revolutionary carbon monocell is a perfect example. It makes the car lightweight and therefore more efficient. It makes the car extraordinarily strong and safe. It makes the car easy to repair and ensures the car's value is retained.'

McLaren says the MP4-12C has the lowest CO2 emissions in its sector. However, Sheriff says low CO2-emitting cars need to be desirable as well as eco-friendly if they are to be a commercial success.

'Low fuel consumption and low emissions must go hand-in-hand with driving or ownership enjoyment,' he said. 'Otherwise we will see exactly what happened recently in the USA. When fuel prices rose, so did sales of cars that favoured efficiency or low price over driving enjoyment. When fuel prices then went down, sales in those segments dropped heavily.'

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 Car buyers can expect clearer and more consistent information on a car's green credentials after the launch of a new code of practice for automotive advertising.

The Best Practice Principles project is supported by the Low Carbon Vehicles Partnership (LowCvp), the Society of Motoring Manufacturers and Traders (SMMT), and the Incorporated Society of British Advertisers (ISBA).

The plan's backers say it will help car buyers make informed choices by making environmental information clearer and more accessible.

Paul Everitt, the SMMT?s chief executive, said 'The UK motor industry is delivering an increasing range of low-carbon vehicles to the marketplace presenting customers with more choices than ever before. To help buyers better understand the environmental benefits these vehicles provide, industry is introducing new guidance for environmental marketing claims.

'The Best Practice Principles set out clear and concise guidelines for businesses endorsing products within the sector, so consumers can rely on a consistent approach to sometimes complex data and information. SMMT will support industry as it adopts these measures to ensure future communications meet industry standards.'

The 'principles
Areas covered by the Best Practice Principles include:

General principles and definitions
This section calls for advertising and marketing to be decent, honest and legal, and that consumers should be able to access product information with ease.

Environmental principles
According to this section, environmental claims should be specific, not mislead and be capable of substantiation. It also states that 'green' claims should be transparent, unambiguous and clearly worded.

Accessibility of information and plain language
Among the principles in this section, the document wants pertinent information, such as CO2 figures, to be accessible in as few clicks as possible when published on manufacturer websites.

It should also be made clear if environmental claims apply to the vehicle, to particular components or technology, or the manufacturer as a whole.

Consumers should be informed if environmental claims are disputed by a significant division of informed scientific opinion.

Comparisons
Data should be referred to in commonly adopted standards, such as CO2 measured in g/km. It also says that average mpg should be used as standard where only one measure of consumption is stated.

Comparisons must also compare like with like and make it clear whether they relate to an individual model, or model range.

Imagery and symbols
The use of green imagery ? such as trees, vegetation or the colour green ? within advertising campaigns should convey a level of environmental performance that is proportional to the 'green' claim being made.

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