A new SUV has hit the Nurburgring and it’s causing quite a stir. With its Cayenne bodywork it appears to be a smaller, compact version of Porsche’s SUV. We’re not so sure, however, as Porsche has said repeatedly that it’s not interesting in going into cheaper segments of the SUV market.

So what it this prototype then? It could be nothing more than a leftover test mule for the Audi Q5. There’s also the possibility that this is a prototype for an even smaller Audi SUV that will slot below the Q5. Audi has made it public that it intends to boost its worldwide volume substantially in the next few years, so yet another SUV could be in the cards.

BMW wins big in this year's International Engine of the Year Awards, garnering six first places. Winners in all categories are:

International Engine of the Year:
BMW 3-LITRE TWIN TURBO (135, 335, X6

Best New Engine of the Year:
BMW 2-LITRE DIESEL TWIN TURBO (123D)

Green Engine of the Year:
TOYOTA 1.5-LITRE HYBRID SYNERGY DRIVE (PRIUS)

Best Performance Engine:
PORSCHE 3.6-LITRE TURBO (911 TURBO, 911 GT2)

Sub 1-litre:
TOYOTA 1-LITRE

1-litre to 1.4-litre:
VOLKSWAGEN 1.4-LITRE TSI TWINCHARGER

1.4-litre to 1.8-litre:
BMW-PSA 1.6-LITRE TURBO

1.8-litre to 2-litre:
VOLKSWAGEN/AUDI 2-LITRE TURBO FSI

2-litre to 2.5-litre:
SUBARU 2.5-LITRE TURBO (FORESTER, IMPREZA, LEGACY, OUTBACK)

2.5-litre to 3-litre:
BMW 3-LITRE TWIN TURBO (135, 335, X6)

3-litre to 4-litre:
BMW 4-LITRE V8 (M3)

Above 4-litre:
BMW 5-LITRE V10 (M5, M6)

Full story here.

Here's Inside Line's take: BMW 3.0-Liter Twin-Turbo Dominates 2008 International Engine of the Year Competition

Porsche obviously sees plenty of potential in the Chinese market. So much so that it staged the world premiere of its most expensive SUV, the 2009 Porsche Cayenne Turbo S, here in Beijing.

This new Cayenne Turbo S gets a slight bump in horsepower along with a few minor mechanical and cosmetic upgrades. The twin turbo 4.8-liter in the Turbo S produces 550 horsepower, a 50-hp bump compared to the standard Turbo. Porsche says a revised exhaust system and "improvements in engine control" account for the increase. Torque is up to 553 pound-feet as well.

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London's Mayor Livingston, if re-elected, wants a 20 mph speed limit in residential sections of the city. If you recall, this is the same guy who wanted to apply a "congestion tax" to vehicles entering the city, which prompted a request for a judicial review by Porsche.

So, what are the odds of this guy getting re-elected to a third term? Think he's going to get the gearhead (or local business) vote?

Full story here.

If you recall, last year Porsche developed a special Cayenne to compete in the 4,400 mile Moscow-to-Mongolia Transsyberia Rally. Now they've come up with a new-and-improved version for this year's race.

Improvements over last year's racer include a new sump guard, a beefier tire package, tweaked air suspension, a shorter final drive ratio (shared with the new Cayenne GTS), plus updates to the transmission programming, dynamic chassis control and traction management systems. Also, an upgrade conversion package is available for those who own last year's model.

Full story here.

Here's Inside Line's take: Porsche Updates Rally Cayenne for 2008

This one goes out to our friend Gary at Porsche. Looks like one of your customers could use a little help.

Ed Hellwig, Senior Editor @ 427 miles

Frankly I'm not surprised to hear this, as Audi has done wonders with diesels in racing. My guess is the Touareg V10 diesel will be the basis from which Porsche will undoubtedly tweak so that it meets their needs. In addition to this, there are rumors that there could be a Panamera hybrid as well.

The reason for doing this? Apparently it's due to the tougher upcoming emission requirements that will soon be upon Europe.

Full story here.

Scott Oldham, Inside Line Editor in Chief

Not only not exist as we know it, but maybe not exist at all if the proposed European CO2 rules go into effect, so says Porsche management.

The proposed CO2 reductions would require Porsche to achieve a 40 percent cut in its fleetwide average, now 242 grams per kilometer (85 pounds per 100 miles) by the beginning of 2015. The German car maker would be subject to fines of $149 for every gram over the limit.

That means that the Cayenne S would be slapped with a $15,211 fine after 2014. So in reality that would likely mean that there would be no more Cayennes, no Panamera, or perhaps even no more Porsches. Maybe there would be hybrid Porsches, but there would be no more Porsches as we now know and love.

Here's Green Car Advisor's take: Porsche Says It Won't Survive European CO2 Rules

There have been rumors for a very long time that Porsche wanted more of a stake in VW than it currently has. It's been an unofficial on-and-off thing for quite a while.

Now, it is indeed official, as they (Porsche) are going to buy more than 50% of VW, effectively taking control of the company. It should also be noted that Porsche does not plan on merging the two companies.

Is this a good thing? Can Porsche work their "profit magic" on VW? Or will this be just a huge bucket of worms for the sports car maker?

Full story here and here.

Here's Inside Line's take: Porsche Board OKs Purchase of Majority Stake in Volkswagen