These days, when discussions turn towards the cars we’ll be driving a few years from now, efficiency and emissions are two unavoidable topics. Such is the case with the next-next generation of the VW Golf, following the sixth iteration that will hit European dealerships later this year. So, what will the seventh version have in store for us? Smaller engines and a smaller structure. For the last few decades, every succeeding redesign was just a bit bigger and more powerful that its predecessor. Expect that trend to end with the Mk VII Golf. You can bet that diesels will account for a larger percentage of sales too, possibly even in the States.

Just when are we likely to see Golf v7.0? Rumors point to 2012, but VeeDub is keeping quiet. What they do admit to, however, is working on it as you read this.

Ford has finally begun production of the all-new 2009 Ford Fiesta in Cologne, Germany, today. After an investment of 455 million Euros (about $674 million) to restructure and modernize the plant, Ford is expecting its 4,000 employees will be able to roll out 148,000 Fiestas by the end of the year, which is an impressive 1,900 cars each day). In January 2009, the Valencia plant in Spain will also begin building the Fiesta. There are also production plants in China, Thailand, and Mexico that are tooling up for the newest small Ford in order to meet worldwide demand, which finally includes the U.S. where it will also be sold in both sedan and hatchback configurations around 2010. Based on the Verve concept, the new compact is exactly what the automaker needs in today’s efficiency-conscious marketplace, and its stylish enough not to be considered a cheapskate or eco-geek while driving.

Well, it wasn’t the Paris unveiling we had expected, but Ford has indeed pulled the covers off its Fiesta Panel Van at the 2008 IAA Commercial Vehicle Show in Hanover, Germany. Based on the three-door Fiesta hatchback, the new Panel Van is designed for commercial and private users who only need to haul non-human goods and want to use the most economical vehicle possible for the job. Sure, it’s no Super Duty, but it’ll get the job done for a large number of drivers across the pond. Under the stylish hood, buyers will find a choice of gas or diesel engines ranging from a 60-horse 1.2-liter gas unit to the range-topping 1.6-liter diesel outputting 90-horsepower and 150 lb-ft. Europeans will be able to get over 67 miles out of each of their oddly-sized gallons while sending just 110 g/km of carbon out their tailpipes with the most frugal diesel engine option. See here for a preview of how the new car might drive and click past the break for all the juicy details.

Hyundai is headed to the Paris Motor Show with a bevy of environmentally friendly models and concepts. In addition to bringing along production-intent vehicles like the new i20, Genesis Coupe and Genesis sedan, the automaker will showcase two new concepts that will also carry its blue theme. Remember, blue is the new green. Anyway, the i20 blue features aero tweaks and low rolling-resistance tires in order to improve its efficiency, but it’s the Santa Fe hybrid that’s a bit more interesting. That new model features an electric motor that puts out 30kW of power along with a 2.4-liter four cylinder engine. Both powerplants feed their power through a six-speed automatic transmission with revised gear ratios optimized for fuel savings. A 270V lithium-polymer battery pack sends the juice to the electric motor, and it all adds up to 38 mpg in the U.S. and carbon emissions of 148 g/km. We’ll be in Paris to see these things up close and personal, so stay tuned.

Starting today, Europeans will be able to order the Fiat 500 by DIESEL. Yes, we know the car’s already offered with a diesel, but we’re not referring to the MultiJet engine here. This is a two-year special run done in partnership with the Italian clothing company. This style exercise is supposed to transform the 500 into an ‘Urban Survival Vehicle.” Apparently, all that’s required for “urban survival” are some DIESEL logos, new trim on the bumpers and bodywork, exclusive wheels, three paint colors, and a dressed-up interior. 100-horsepower cars also get yellow brake calipers. Seeing as how 10,000 “by DIESEL” cars are planned, we have a feeling that the folks who really want one will find a way to get one. This isn’t exactly as limited as some other 500s we’ve seen lately. Thanks to A-rod for the heads-up.

The Tata Nano, which will be the world’s least expensive car, has already exacted enormous sums of money and time. A dispute over the location of a new factory has cost Tata close to a year of court wrangling and might end up spoiling a £200 million investment. Now the efforts to build the Nano have cost a life.

Unhappy workers were invited to a meeting with Indian and Italian executives of Cerlikon-Graziano Transmissions, which makes auto parts, to discuss reinstatement. Only a few workers were in the meeting, but more than a hundred were waiting outside. When those outside heard someone inside call for help, they rushed in, and in a mob fog anger, bludgeoned the company’s operations head, Lalit Kishore Choudhary, to death.

It was later reported that some of the folks involved in the melee weren’t even employees of the company. What Tata will need to urgently figure out is where it needs to go — inside or outside of India — to build the Nano without backlash. In the mean time, our condolences go to the Choudhary family. Thanks to all who tipped in.

Kia’s will have at least two new tricks at the Paris Motor Show, one of them being the Kia Soul. The other will be a Kia cee’d gas-electric hybrid. Already available in coupe, 5-door hatch, and sportwagon variants, a hybrid addition based on the five-door would be a perfect addition to the line. So far, the only details we have is that the c’ee hybrid isn’t planned for sale until 2010, when it will join a train of new hybrids from other makers. Kia apparently decided that is when they’ll be able to sell enough of them to make a profit. But we will get the complete scoop on it at next week’s Paris Motor Show, so you won’t have to wait that long.

The state of California has the toughest vehicle emissions regulations in the world in its LEV II (and the corresponding national Tier 2 Bin 5) standards. Those rules treat all engine types the same regardless of what fuel they use. It doesn’t matter if the engine runs on gasoline, diesel or cow dung, the emissions standards are the same. These rules are so tight that no manufacturer has been able to sell light-duty passenger vehicles powered by diesel engines in California and four other states for the last several years. That’s all about to change beginning with last month’s sales launch of the 2009 Volkswagen Jetta TDI. The Jetta TDI is the first new diesel-powered car to meet the tough T2B5 standards, and it’s fitting that VW invited us out to the birthplace of these emissions regulations to drive it. We spent a day driving the Jetta TDI in and around Santa Monica to gauge whether it has the right balance of Fahrvergnügen and low fuel consumption to be a viable alternative to cars like the Prius, Civic and Focus. Continue after the jump to find out more.

When GM and the UAW agreed to a new contract in 2007, several new models and the plants in which they would be built were agreed on. Drastic shifts in customer tastes are changing those plans rapidly, and the General is scrambling to deliver. GM was planning to build a seven-seat crossover based off its global Delta small car platform at the Detroit Hamtramck plant next year, but the Wall Street Journal is now reporting that the vehicle will no longer be produced for the US market.

The small MPV, which is being unveiled at the Paris Motor Show in concept form as the Chevy Orlando, will still be available in Europe where small seven-seaters are much more popular than here in the States. The small crossover will instead be replaced by a compact vehicle from Asia, possibly the Chevy Beat. However, GM never designed the Beat to meet U.S. crash-test standards, but hopefully the extra resources freed up by nixing the Orlando’s U.S. launch could make that happen in quick order.