£2m Danish Veyron rival

There's perhaps no greater signifier of economic doom and gloom than a glut of supercars entering the marketplace. And another one appeared this week from Zenvo Automotive, a Danish company. The ST1 is a mid-engined monster that its makers claim is electronically limited to 233mph.

Allowing it to hit its scary top speed is a 7.0-litre V8 engine that features both a supercharger and a turbocharger, giving the ST1 a claimed 1,104bhp and 1,054lb.ft of torque. All that grunt drives the rear wheels only via a six-speed manual transmission, meaning the driver of the ST1 will need to be very talented indeed to use all the ST1's performance.

Perfect the gear shifts and the ST1 should reach 62mph in just three seconds, while the ST1 driver can see the forces being placed upon them via a G-force meter on the head-up display.

We doubt you'll need a display to highlight how brutal the ST1's performance will be - it's certain to be a staggeringly quick car. So quick we'd recommend you tick the option box for the larger ceramic brakes if you plan on using all its power. Not that many people ever will, as Zenvo only plans on building 15 ST1s for discerning - insanely wealthy - customers worldwide.

It certainly looks sensational, the ST1 following the supercar design rulebook to the letter with plentiful scoops and vents and an unforgettable, aggressive nose and rear end.

Priced at 16,000,000 DKK - £2,033,856 at current exchange rates - Zenvo is very ambitious in its pricing. Is the time right for a one of fifteen, two-million quid, 1,104bhp, 233mph supercar? We don't think so, but then there are plenty of people out there who might disagree and have plenty money despite the credit crunch.

credit : Kyle Fortune

Tata to 'bail out' JLR

The seemingly sudden news that Jaguar Land Rover (JLR) needs an immediate cash bailout from the UK Government has taken many by surprise, and led to fears that the UK car industry is heading the way of the American one.

But it seems a bailout will be unnecessary, as reports today (December 22nd, 2008) suggest that JLR will receive 'tens of millions' of pounds from its Indian owner, Tata Motors.

Reports involving JLR's cash flow issues have divided opinion, particularly as the maker is in the hands of a successful Indian firm, and a bail out would be seen as a step towards state ownership of a car maker. However, despite being coy about the amount of money it will give to JLR, Tata is not denying the report - despite refusing to say how much it will give.

And it's fortunate that the Tata injection is forthcoming, because business Secretary Lord Mandelson had thrown doubt on a Government bailout, saying that would only happen as a "last resort."

The Government is certainly involved in the future of JLR in some capacity, however, as Debasis Ray, Tata's head of corporate communications said: "Discussions with the government, however, are confidential and cannot be revealed. We have to run the company and are doing so to the best of our abilities."

Sources suggest that government ministers are discussing a £667m loan package for JLR in order to safeguard jobs in the wake of a dramatic sales slump. It is suggested by the UK Confederation of British Industry that the UK could see 800,000 jobs in the car making sector unless the Government comes to its aid immediately.

Meanwhile, American auto sector workers will sleep a little easier this Christmas after President Bush signed off a $17.4bn (£11.6bn) bailout for the Detroit Big Three makers.

credit : Mark Nichol

Toyota makes first annual loss

It seems that even the previously untouchable Japanese car makers aren't immune to the current financial crisis threatening the American and UK auto industries, as Toyota posts its first annual loss since 1941.

Insiders are calling the loss an 'unprecedented crisis', with Toyota President Katsuaki Watanabe saying: "the change that has hit the world economy is of a critical scale that comes once in a hundred years."

Toyota estimates that it will post a total operating loss of Y150 billion (around £930m) - a stark contrast to the Y2.2 trillion profit it turned over in 2007. A combination of slumping overseas sales and the soaring Yen is to blame. Investors are describing the news as a "devastating" blow for the Japanese economy, with the ripples felt not only by other car maker across the world, but the entire Eastern economy.

Toyota is estimated to have around 90 day's worth of unsold cars in stock - twice what it considers 'acceptable' - and now joins the legions of other car makers with similar problems; ranging from high volume manufacturers like the American Big Three, right through to specialist, high-end makers.

Toyota expects to sell just under nine million cars this year - down four percent from 2007 - and at present refuses to forecast 2009's sales. The news comes as Jaguar Land Rover is promised "tens of millions" by Indian owner Tata Motors in order to stay afloat, and the beleaguered US Big Three are finally given some respite by the Bush administration in the form of a $17.4bn bailout loan package.

credit :Mark Nichol