Stockholm - Saab is offering the all-wheel drive (XWD) system for the 2009 models of the 9-3 Sport Sedan and SportCombi range, the car maker has announced.

Originally developed for the harsh Swedish winter roads, the manufacturer says the system is also ideally suited for wet roads and tarmac covered by autumn leaves.

The XWD system distributes engine torque between the front and rear axles, to achieve optimum handling and grip in all driving conditions. On the open road, it helps the driver keep the car stable while cornering.

Unlike conventional all-wheel-drive systems, the XWD eliminates the need to detect wheel slip before rear drive is activated, the car maker says.

Vienna - Car passengers sitting in a reclining position with their legs resting on the dashboard could be seriously injured by the airbag in a crash, the Austrian motoring organisation (OeAMTC) has warned.

In crash tests conducted by the organization, the airbag in the cubby hole pressed the legs and feet of a dummy onto the windscreen with full force and one of the feet went straight through the glass.

The airbag could not deflate fully as the legs were resting on the dashboard. Passengers stood no chance of pulling back their legs because the airbag is triggered in milliseconds, the organization warned.

Wolfsburg, Germany - Volkswagen is working on plans to build a new cheap mid-engined sports car that is scheduled to be presented at the Los Angeles Auto Show in November, Germany's Auto Bild newspaper reports.

Drawings published by the newspaper show a car with large wheels and a long wheelbase.

Four cylinder engines with an output between 77 kW/105 hp and 118 kW/160 hp were possible for the lightweight car with a body weight of under 1,000 kilogrammes. Several components such as steering, brakes and electronics would probably come from standard VW vehicles to bring down the price, the report said.

Tractor major Mahindra & Mahindra (M&M) has decided to invest $26 million

Berlin - Japan's N