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.

Our hunch that Mitsubishi would bring a redesigned Colt to the Paris Motor Show after it released a teaser earlier this week has been confirmed when the automaker inadvertently (?) posted a banner ad of the new sub-compact on its webpage.

The new Colt benefits from the familial angry-eye headlamps and trapezoidal grille, although both elements have been toned down to better suit the Colt’s smaller proportions. The compact cruiser is available in both three- and five-door body styles, with an upright backside that should maximize cargo space. A range of miserly mills power the current Colt, ranging from 1.1- to 1.5-liters, along with a 1.5-liter DI-D diesel. We expect some of these engines to carry over to the new model, and a cabrio version is probably right around the corner.

If Mitsubishi wants to do battle with the Yaris, Fit, Versa and… ahem… Aveo/G3, we might see the Colt come Stateside. But we’re not quite ready to hold our breath.

Car buyers in the US are thinking smaller and more efficient, but probably not small enough for the upcoming Hyundai i10. At least that’s the thinking within the top ranks of Korea’s largest automaker. The i10 is a micro hatchback that was designed for Euro duty, but could find a niche here in the States. Unfortunately, US customers still aren’t snapping up mini cars in any real volume, making it an unattractive proposition for the automaker. Hyundai insists that no final decision has been made, but Hyundai America VP John Krafcik said earlier that the i10 is unlikely to be sold in the States.

Hyundai is still considering bringing the i20 over to our shores, where it would fit under the Elantra. The i20 is being unveiled at the Paris Motor Show, and it will go on sale in Europe by the end of the year. For the short term, Hyundai will import more Elantras from South Korea by November to satisfy our hunger for smaller, more efficient cars.

Fuel-efficient city cars are being created at automaker R&D departments the world over, and even BMW plans on getting in on the action. BMW CEO Norbert Reithofer has confirmed that the German automaker was working on a ‘mega city car’ that will carry an all-new look, and two powertrains. One micro car will receive motivation with the aid of standard combustion, but the other will be pure electric. The electric vehicle will also comply with a California mandate that by 2012 there must be a fuel cell or battery-powered car that can travel 200 on a single charge. For comparison sake, GM promises at least 40 miles for the Chevy Volt, and Mitsubishi is looking at 100 mpg for the iMiEV.

It’s also worth mentioning that the BMW CEO specifically pointed out that it meets California regulations, signaling that the vehicle would be available Stateside. There is still no word regarding which of BMW’s three brands would be used for the vehicle, but we’re still very sure it won’t be a Rolls Royce.

Car buyers here in the States are clamoring for fuel efficient transportation, but so far the Saturn Astra hasn’t been on the top of buyers lists. The Astra is a smash hit in Europe and we liked it during its short stay in the Autoblog Garage, but it may just be too expensive compared to the competition with a starting price of $16,495. General Motors isn’t keeping the price high to make a profit on the small volume import, either. GM vice chairman and quote master Bob Lutz told Automotive News that the Belgian-made Astra isn’t profitable in the U.S. at all anymore due to the weak value of the Dollar vs. the Euro. The Astra has gone up in price by $500 since its introduction to reflect the broadening gap between the two currencies, and the price hike was implemented only to lessen the hit from the currency exchange. The Astra is not just a financial burden for the General – it isn’t exactly a sales success, either. GM has sold only 7,914 so far this year, which is far below the projected pace of 25,000 annual units. Part of the problem is that few people actually know the Astra exists, and those who do may not want to pay the relatively high price of entry.

Debuting in concept form today is the most fuel efficient and cleanest version of Volkswagen’s sixth-generation Golf. Wearing the BlueMotion badge, as is common for VeeDubs with fuel-saving tweaks, the new Golf is able to complete the European driving cycle mileage tests with a rather epic 74 miles per gallon (around 62 mpg in the U.S. if conversions can be trusted). For those who like to keep track of such things, that’s just 99g/km of carbon emissions and an excellent score by any measure. In order to achieve such low fuel consumption and emissions, the Golf BlueMotion is bestowed with a miserly 1.6-liter TDI common rail diesel engine that kicks out 105 horses and 184 lbs.-ft. of torque at a low 2,000 rpm. Low rolling resistance tires, aero tweaks and revised gearing all help the cause. Though still just a concept, there is little doubt that this model or one very similar will debut a few months after the the standard Golf in Europe next year. In the U.S.? Don’t hold your breath, though a Golf TDI sold in the States may happen eventually.

By naming its impending city car the iQ, Toyota makes no bones about who it’s after. And with an extra set of seats fitted into its diminutive little runabout, the Japanese auto giant looks to one-up the smart fortwo with a vehicle that measures about the same size. Ahead of its European release, Toyota decided to release a few new shots of the production iQ, and we’ve gone ahead and assembled them into a high-res gallery for your viewing pleasure. After looking things over again, we like what we see. The look is obviously Toyota and we think that the flowing but angular lines translate a bit better in this small package than in some of the marque’s larger vehicles. There are four seats inside, though Toyota considers the iQ a 3+1 seater, as the fourth seat is suitable only for wee children. Production will begin shortly and vehicles will begin showing up in Europe at the start of the new year.

Nissan is bringing a trio of vehicles to the city of lights for the 2009 Paris Motor Show: a new concept called the Nuvu, an all-new production car car called the Pixo and a revised Note. We don’t have an image of the Nuvu yet, but Nissan says it’s a compact all-electric city car with 2+1 seating. It takes its green theme seriously with solar panels shaped like tree leaves on the roof that channel the sun’s power through a “tree trunk” conduit in the center of the vehicle.

Next up is the Pixo, a new production car for the city with four-doors and a rear hatch that’s powered by an eency-weency 1.0L three-cylinder engine. Built in collaboration with Suzuki, the new A-class car will obviously be geared towards fuel economy and low emissions when it goes on sale in Europe in the spring of 2009.
Finally, Nissan will have a revised version of its Note compact car that features a new, sleeker front end. New wheels, colors, a revised suspension and an available 1.5L dCi engine round out the changes. The Note also gets Nissan’s new in-car nav/infotainment system called Nissan Connect. It comes with everything the market demands including a touch-screen navigation system, connectivity for digital audio players and Bluetooth connectivity.

While we’re clamoring for small, efficient transportation, Europe is already awash with micro cars, diesels, and hatchbacks. When Toyota designed and engineered the tiny iQ, it had to go smaller and greener than the competition, so the little four-seater is only about 1.5 feet longer than a Smart fortwo. AutoExpress is reporting that Toyota is prepared to take iQ to the next level of green, with a plug-in hybrid version of the micro mini. Plug-in technology would reportedly be shared with the next generation Prius, save for an engine that goes from 1.0L to a displacement of only 500 cc. Chargeable batteries will enable the iQ to travel 15 miles or more without a drop of CO2-spewing combustion, and the smaller engine would stay stingy when it does come to life. While the iQ is probably still a little too small for large scale US consumption, we’re sure the vehicle would have quite the cult following if it could pull off fuel economy in the 100 mpg range. If gas decides to travel back north of the $4 mark, though, even a clown car would be acceptable Stateside.