Honda have said today that the company have been forced to cancel the next-generation NSX because of the global economic conditions. The announcement was made during a speech outlining the carmaker’s revised economic forecast.

News has also been reported that the firm would not be bringing the Acura brand to Japan. ‘The situation is worsening by the day, and there is no prospect for recovery, is our understanding,’ Reporters were told. The NSX was expected to be a V10 sports car and it is reported that the car was almost production ready.

The project had encountered a number of problems but these problems had been overcome and it was in the late stages of development.

The Honda boss had previously told Autocar at the end of last year that the new NSX is ‘necessary for Honda’. The company reportedly indicated its operating profits will be 180 billion yen ($2 billion), down 67% from the forecasted 550 billion yen.

Honda is another manufacturer which has recently pulled out of motor sport to save money, as the firm pulled out of F1 as they were struggling with the costs of the expensive sport, the company had spent an estimated £300 million on F1 each year and in the current economic climate have decided it can no longer take part in the expensive sport. 

BMW has unveiled new version of the Z4 which features new curves, a folding hardtop and more electronic trickery to help drivers customise the setup.

The new goodies include Adaptive ‘M’ suspension, meaning electronically controlled dampers with three different settings and ride height adjustment.

The car now also features ‘Drive Dynamic Control’, a software suite allowing for adjustment of various other bits, including throttle and steering response, ride comfort level and DSC – which is dynamic stability control level.

The main changes to the Z4 are aesthetic and the body gets a makeover more in-line with the current BMW line-up, featuring another variation of the new family nose and the rear of the car has more of a hint of 6 Series.

The new Z4 is 148mm longer than the outgoing version at 4,239mm, and 9mm wider at 1,790mm. This allows for a modest increase in headroom and slightly boot capacity, but the new hardtop means boot space is more restricted. 

The hardtop roof is in two pieces and is electro-hydraulically operated and can be raised or lowered in 20 seconds. 

The engine has also changed slightly from the old 2.0-litre option. Three six-cylinder powerplants are now offered:

2.5-litre with 204bhp,

3.0-litre with 258bhp,

Twin-Turbo 3.0-litre with 306bhp. This being top of the range and will apparently hit 60mph in just over five seconds, which is pretty impressive considering that BMW also claim it’ll do 30mpg.

Here are some sneaky pictures of the new model in the video below -

Aston Martin’s major shareholder is looking to sell a 20% stake in the company to help refinance debt. Kuwait’s Investment Dar said on Sunday it was considering offers to sell up to 20% of the British carmaker and is understood to also be looking to borrow $1billion to help balance the books.

The Islamic investment company bought half of Aston last year but executive vice-president Amr Abou El-Seoud said it is now looking to sell a 10 to 20% stake. They have said that they have had offers and are in talks at the moment but the (sale) should be value-added whether financially or technically.

Seoud did not identify any possible buyers but revealed that shares could be sold to the public within three to five years. Aston, like many carmakers, has been hit hard by the recent economic downturn and said earlier this month it would cut 600 jobs in the UK.

Audi has released a video of its new R8 LMS, which was unveiled at the Essen Motor Show recently. The car is effectively a GT3 racing spec R8 and will cost around £206,000 – which is more than twice the price of a road-going version. 

But the modifications are not restricted to a few suspension bits and some extra carbon fibre… Customers will get a completely track-ready car now with ten cylinders and over 500 BHP.

The regulations state that the car can no longer be four-wheel drive, with the power is now being channelled through just the rear tyres.

A new six-speed sequential manual gearbox has also been developed and the car is now fitted with a huge rear wing and aerodynamic bodykit.

Most people who are knowledgeable about cars would assume that the KTM X-Bow is more at home on a fast track than it is trudging through the snowy Highlands of Scotland to see your mother-in-law at Christmas. But owning an X-Bow is no longer an excuse not to do the latter thanks to a new ‘Winter Package’ that will see you using the car whatever the weather.

The new pack offered by KTM’s Powerparts and PowerWear accessories collections starts with Pirelli Sottozero snow tyres and five-bolt wheels and for icy conditions snow chains are also available.

KTM’s next plan is to launch Power Wear which is specially designed winter clothing for the driver with Schöffel-designed driving clothes and a Schuberth helmet. The full outfit of helmet, jacket and trousers starts at 950 Euros.

It has been reported that Suzuki has pulled out of world rallying due to the global economic downturn. The carmaker only survived one season in the World Rally Championship having started in the junior WRC in 2002. 

In a statement the Japanese manufacturer said it had ‘decided to focus on the core business functions’. Like Honda, which recently withdrew from F1, Suzuki said its decision was based on the recent economic crisis.

‘In responding to the contraction of the automotive sales caused by recent global economic turmoil, Suzuki has been promptly taking possible countermeasures, including the reassessment of its global production output,’ said Suzuki’s statement.

‘To secure its own business environment for tomorrow, the organisation reviews every aspect of the operations and decided to focus on the core business functions such as the manufacturing system, environment technologies and development of new-generation powertrains. As a result, Suzuki concluded to suspend the WRC activities from 2009.’

Subaru has pulled out of the world rally championship citing the global economic crisis. The manufacturer joins Suzuki, which announced its exit from the championship yesterday. Fuji Heavy Industries, the maker of Subaru cars, said on Tuesday it would exit WRC, leaving just Ford and Citroen for the 2009 season.

Carmakers are under serious pressure to reduce spending and motorsport is one of the more obvious cost-cutting measures, although the sudden departures of two manufacturers will be a serious blow for rallying. Subaru has been involved with the sport since the nineties and built much of its reputation for Subaru road cars on its rallying glory.

Prodrive have led the Subaru team to six world titles, so it will be a massive blow for them. The Prodrive company is based in Bandbury has said it will look to redeploy as many of the rally team as possible in other areas of its business operations.

Prodrive chairman, David Richards, said: ‘Subaru’s departure from the World Rally Championship is a great loss as it is one of the sport’s icons. The Subaru World Rally Team has created true champions such as Colin McRae and Richard Burns and its absence will be felt by many the world over.  Although this decision closes a significant chapter in Prodrive’s history, our focus now turns to the future.’

Espuma Ikon Wax is currently being discounted for a limited period, www.espumadirect.co.ukhas taken of 17% and if used with the detailing world code DW001 a further 10% saving can be made. Espuma Ikon Wax was recently launched as the new liquid emulsion carnauba wax which give a wet look finish and rivals some of the most expensive hand crafted hard wax.