The rumormill is a funny thing, and sometimes it can run amok. This appears to be one of those times. The DigitalCorvettes.com forum posted a note earlier this evening saying that Corvette ZR1 production has been halted (Bowling Green is shut down this week, so no Vettes are being built at the moment) and suggesting that the ZR1 may be cancelled. A post on dealer Rick “Corvette” Conti’s blog, linked in the referenced DigitalCorvettes thread, added to the intrigue.

Autoblog has contacted GM’s Terry Rhadigan, who handles global communications for the Chevrolet brand. We presented the DigitalCorvettes link and asked for an official response. His was very clear:

“Not true.”

There are already a ton of Ford Mustang variants on the market, and Dodge has seen fit to offer three separate Challenger models, the SE, R/T and SRT8. Could Chevy do the same with the new fifth-gen Camaro? It’s possible, though there’s been no official word from General Motors as of yet. A Z28 model to join the base and SS trims would seem like the next logical step if the line were to be enlarged.

A talented designer who goes by Jinx on Camaro forums has created some renderings of what a Camaro Z28 could look like. He envisions a supercharged 6.2L LSA engine underhood with 550 horsepower. That hood would need a power bulge to cover the supercharged mill, and the rendering features a clear opening like the latest ZR1, along with a carbon fiber splitter up front. An enlarged lower air intake would feed the intercooler and is also flanked by functional brake cooling ducts. Quad exhaust tips give those spent gases plenty of room to exit. If a Z28 were to come from the General, they could certainly do worse than to use this guy’s design.

In a recent post about the 2009 Dodge Challenger SE, KickingTires quotes director of Dodge brand marketing, Mike Accavitti, saying that there will be no convertible version of the reborn muscle car in Dodge showrooms. Apparently the platform would require too much additional hardware to handle the extra flex from cutting the roof off, and the added weight would push the car too far into the Sumo class. And that would be with just a simple manual soft-top, not one of them there new-fangled retractable hardtops that are the top du jour for convertible buyers. There’s also the issue of cost and the fact that Dodge’s market analysis seems to indicate there isn’t a huge market for them. We understand the reasoning and know that even the coupes are going to be low-volume, but we would humbly like to suggest a limited run of SRT-8 convertibles at double the coupe’s asking price. Say 20 or so. Buyers will pay twice the sticker price at least and mothball them immediately so they can be exhumed in 2050 and be the ‘71 Hemi ‘Cuda convertible equivalents of their day.

Even for utilitarian transport, the Colt is a fine looking vehicle – Mitsu’s new grille is a one-size-fits-all beautifier, and there are some nice details around the car. The dip in the headlights isn’t original, but it’s executed with a flavor of its own. Inside it’s plastic city and several bolts of cloth, but again, while there’s nothing exactly special about it, there’s nothing that would make you go “Ugh.” The Colt Ralliart edition (above), however, is a treat. The details outside don’t change much save for a wheel finish and a larger tailpipe, but the massively bolstered leather seats completely remake the interior. Check out the press release on the new Colts after the jump, and the galleries below: one of live shots, the other a massive folder of press shots that even includes some vintage Colt rally action.

Jaguar quietly trotted out its hottest XK to date, the XKR-S. Packing a 420-hp 4.2-liter V8 and sending power to the rear wheels through a six-speed automatic gearbox equipped with Jaguar’s Sequential Shift system, the XKR-S can run to 60 in 5.2 seconds and on to a top speed of 174 mph, making it the fastest Jag since the XJ220 supercar.

But it’s not all about motivation. The revised suspension features new springs, dampers, a larger rear anti-roll bar and a recalibrated CATS (Computer Active Technology Suspension), while an active exhaust, revised aerodynamic aids (including one funky but functional spoiler) and massive, 400mm (front) and 350mm (rear) Alcon R Performance brakes balance out the package.

The Jaguar XKR-S will be limited to only 200 cars in both left- and right-hand-drive, but those of us in the States will never get a taste – it’s a Euro-only affair.

We’re really excited for the new Ford Fiesta to hit U.S. shores, but unfortunately we have almost two more years to wait. Our friends overseas don’t have to wait at all, though, so marketing for the attractive sub-compact has already started in the UK. One such publicity stunt involved a pair of three-door Fiestas that tore up the dance floor recently near the Tower of London at the Tango at the Tower event while a 20-piece orchestra jammed the classic tune. That’s right – cars doing the tango. Hit the jump to view the well-choreographed video of the two Fiestas going toe to toe in the rain. We’re tempted to quip that these Fiestas have better moves than Kim Kardashian, but we have no desire to admit watching Dancing with the Stars.

When Nissan launched the 350Z in ‘02, it was working hard to reinvent itself and the new Z was clearly its halo car in the U.S. market. Now that that the revival has come and gone, expect the new 370Z to take on a new tack as a harder edged vehicle. In fact, Nissan plans to take on Porsche, the most classic of all sportscar manufacturers, with its newest coupe. Equipped with a larger 335-hp 3.7-liter V6 engine and having gone on a serious diet, possibly shedding as much as 200 lbs, the new Z will definitely have the cojones to keep up with its foes, including the Cayman, and its shorter wheelbase and wider track should conspire to make it quite the handler as well. We’ll get our first official look at the new son-of-Godzilla at the LA Auto Show, shorty after which the Nissan 370Z should show up in Japanese dealerships with U.S. delivery at a later date. Hopefully, not too much later.

The Tata Nano may be the most expensive vehicle ever to be the cheapest new car on earth. Violent protests at one of the car’s planned assembly sites have gotten so rampant that the Indian automaker is near a deal to exit the nearly completed West Bengal facility all together. Just a few days after a supplier CEO was killed by a mob of protesters, two body guards were also assaulted at the contentious facility. The controversy in West Bengal centers around the land that local farmers lost to the $200 million Euro facility, and with the building nearly complete, it’s hard to believe that land will be returned any time soon even if Tata did abandon the region.

Word out of India is that the state of Karnataka has offered Tata Motors 1,000 acres plus incentives to move Nano production there, and the local media is reporting that Tata is going to announce plans as early as next week. We’re not in the micro car business, but if we were, we’d avoid building them where there is the constant threat of being beaten or killed by an angry mob. Moving Nano production to a region that actually wants the Tata there seems like a foregone conclusion at this point.

If the song is true that “to everything, turn turn turn, there is a season, turn turn turn,” then we’re going to need a lot more seasons for the Fiat 500. In addition to versions by StudioTorino, Diesel and Abarth, not to mention a convertible and an F1-themed run of 12, Fiat is making a special edition 500 to celebrate the car’s appearance in the movie Lupin III: Green vs Red.

The Japanese anime film itself celebrates the 40th anniversary of the Lupin III series of movies, which began in 1979 when gentleman thief Lupin III used a yellow Fiat 500. While the film is out now on DVD, the special edition Fiat 500 in yellow livery and graced with Lupin’s image won’t come around until the latter half of 2009, and probably only in Japan. If Fiat keeps this up, it might just challenge the Ford Mustang for the title of Most Gratuitous Special Editions Differentiated by Inconsequential Details.

Since Buick, Pontiac and GMC dealers are in the process of consolidating their showrooms, many were likely hoping for a halo product that could draw customers into the showroom. Hey, wouldn’t a version of the upcoming Chevy Camaro badged as a Pontiac Trans Am revival do the trick? Maybe, but at the NADA conference this week, GM told these dealers that a Pontiac Trans Am is not going to happen. Blame the new, more stringent federal fuel economy regulations for killing off this cool idea. In fact, the new regs also mean that the automaker will be scaling back on transforming Pontiac into a rear-wheel-drive performance division. Though GM assured dealers that Pontiac will remain a car-only brand, the assurance that a debacle like the Aztec won’t happen a second time is little comfort to those who were hoping Pontiac would once again be the brand that builds excitement. And who says performance has to be totally sacrificed for fuel economy? New powertrains are being developed that make the most of the internal combustion engine’s efficiency, and a twin-turbo, direct-inject four-cylinder can make gobs of power while being much more efficient than an equally powerful V6 or even V8.

GM did inform Buick, Pontiac and GMC dealers that they would be getting 12 new or special-edition vehicles over the next 20 months. A special-edition GMC Sierra pickup called Pro Grade was mentioned, for instance. Still, the quashing of any hope for a new Trans Am means that the number of vehicles slated to share the Camaro’s rear-wheel-drive Zeta platform in the U.S. is dwindling. Only the Pontiac G8 and G8 ST car-based truck are confirmed, with Zeta-based rear-wheel-drive sedans for Buick and Chevy still up in the air. This means that without the ability to spread out costs across a number of new vehicles, the price of producing these vehicles will likely be high and passed on to the performance-minded consumer.