Currently reading: Autocar confidential: Toyota's mite-sized SUV, Volvo's diesel rejection and more

Our reporters empty their notebooks to round up a week in gossip from across the automotive industry

In this week's round-up of automotive gossip, we find out why Skoda may not produce a next-generation Skoda Citigo, get the lowdown on Toyota's A- and B-segment spree, hear Volvo's views on diesel and more.

Skoda Citi-no? 

A new generation of the now electric-only Skoda Citigo is still unconfirmed for production, with technical boss Christian Strube saying that although small cars still “made sense”, such a car “must be affordable”. Boss Bernhard Maier told Autocar that government subsidies were needed to keep the cost down, otherwise small cars “will be hardly accessible as a mass product”.

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Toyota's super-wee SUV

The chief engineer of the Toyota Yaris, Yasunori Suezawa, is also developing the next-generation Toyota Aygo alongside “other A- and B-segment cars” – likely to include a new superminisized SUV. It’s expected all will use versions of the TNGA platform, and could also benefit from sporting GR variants.

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Volvo snubs diesels

Diesel engines are “complicated and expensive” to engineer to meet future emissions regulations, according to Volvo boss HÃ¥kan Samuelsson. Volvo will no longer launch diesels in any new models, and Samuelsson believes it is “better to go with hybrids” to make a significant cut in CO2 emissions ahead of increasingly strict legislative targets.

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Car review

Skoda's city car gets more standard equipment and remains decent to drive, but the Citigo still lacks the sophistication of the VW Up or the dynamism of the Hyundai i10

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Mercedes foregrounds sustainability 

Mercedes must demonstrate to its customers that it is a sustainable, modern luxury brand if it is to thrive in the future, according to the firm’s chief executive, Ola Källenius. “The concept of building beautiful machines is no longer enough,” he said. “Our cars must be sustainable, not just in terms of emissions on the road, but also in terms of their manufacturing.”

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