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A new Toyota MR2? We want to believe

In the wake of a busy Geneva auto show, the rumor mill is churning, and the latest grist involves one of the most beloved Toyota sports cars of all time. EVO reports that Tetsuya Tada, the chief of the Scion FR-S/Toyota 86 project and a hard-liner about sportscar priorities (light and nimble, but with modest horsepower), wants a third vehicle for Toyota's nascent sporty lineup. Currently, we know there's a Supra-like vehicle in the works, being co-developed with BMW, and the 86 is sticking around. Tada said he'd like a third sportscar to compliment the two we know about, and that he wants it soon. A quick bit of history: Toyota's classic sporty lineup had three components. The most visible was the Supra, whose power and prestige grew as the car evolved from a cushy personal tourer to a high-horsepower, high-technology icon. The Celica was its Clark Kent, more mild mannered but also more accessible and affordable. The third was the MR2, a mid-engined go-kart that lasted for three distinct generations. Each had its charms, and all have their fans. When Tada says that he wants three sportscars in the lineup, we already know about the Supra successor, and the 86 is already filling the Celica's role, so the blank is easy to fill. It doesn't sound like Tada spoke the word "MR2" to EVO, or hinted that the car would be mid-engined, but Tada doesn't seem to say anything without purpose. Whatever the layout, this third car – if it comes to fruition – will probably play a role similar to the MR2 in relation to its stablemates. To translate: it'll likely be even lighter and more nimble, and probably less powerful, than the 86. The closest real-world analogue to the pure MR2 ideal is the Honda S660, a mid-engined Kei roadster that's on sale in Japan right now. It's light, small, and powered by a 0.66-liter inline-three. Toyota could decide to directly compete with the S660, borrow an engine from its small-car specialist subsidiary Daihatsu, and produce a mid-engined MR2. Another possibility, even simpler from Toyota's perspective, would be to adapt the existing Daihatsu Copen roadster. Sure, it's front-engine and front-wheel drive, but it's a small, light roadster. And even better, it sells abroad with a larger 1.3-liter engine. Restyle it slightly, perhaps to resemble the S-FR concept of a couple years ago, and it's an off-the-shelf solution. The S-FR itself is a third possibility.

Toyota reaches $1.2B unintended acceleration settlement in criminal probe

UPDATE: Just like that, Toyota has released an official statement confirming its $1.2-million dollar settlement with the US Attorney's Office. Our story has been updated to reflect this development and the automaker's official statement has been added below.
Toyota has reached a settlement over the criminal probe into its unintended acceleration problems, and the outcome is more expensive than first expected. The Japanese automaker has agreed to pay $1.2 billion to close the investigation among other settlement terms. The criminal inquiry focused on whether the company kept information from regulators and how it handled drivers' complaints about the problems, according to the sources.
Between 2009 and 2010, Toyota ended up recalling over 10 million vehicles worldwide over sudden acceleration fears. Fixes include modifying floor mats, gas pedals, and installing brake override software on affected models. In addition, Toyota made the latter standard on all of its new vehicles.

Weekly Recap: Toyota, Mazda team up to 'make cars better'

Toyota and Mazda are teaming for a noble purpose: to "make cars better." That's how the two Japanese automakers termed their partnership, which was announced this week. So what does this actually mean? The companies said they will set up a joint committee to look for areas of cooperation and named safety and the environment as issues they plan to tackle. From a product perspective, it's believed that Toyota is interested in Mazda's Skyactive engine portfolio. In turn, Mazda has its eye on Toyota's fuel-cell and plug-in hybrid technology. While more specifics were not confirmed, the companies said the "agreement will go beyond the traditional framework of cooperation," and it has the potential to be a long-range partnership. "The main purpose of this initiative is to enhance the appeal of our cars," Toyota president Akio Toyoda said at the announcement. Previously, Mazda has licensed Toyota's hybrid tech and assembled compact cars for Toyota in Mexico. Akio Toyoda said these projects "triggered" the automakers to explore further collaboration. Dave Sullivan, product analysis manager for AutoPacific, said the tie-up echoes Daimler's wide-ranging work with the Renault-Nissan alliance. "This could be a well-groomed match due to each having very unique skill sets," he said. OTHER NEWS & NOTES Volvo selects South Carolina for US factory Volvo confirmed this week that it will build its first US factory in South Carolina, with construction set to begin this fall. The company first revealed plans in March, though it didn't announce a site. The plant will have initial annual production of 100,000 units, though the vehicle or vehicles to be assembled were not specified. The factory, located near Charleston, will open in 2018 and ultimately employ 4,000 people. The facility will help Volvo continue its growth strategy, which includes strengthening its presence in the US market, where it wants to sell more than 100,000 cars per year. "Building a plant in the US is a reflection of Volvo Cars' commitment to the US and the key role the US plays in our growth objectives," Lex Kerssemakers, senior vice president, Americas, said in a statement. Ford GT spied on the road The 2017 Ford GT was spotted testing around the Blue Oval's headquarters in Dearborn, MI, this week. The raw body panels were exposed, and they lacked paint or camouflage. It's the first time the GT has been captured on the street after a spring of auto show reveals.