The Karma will initially be built by Valmet Automotive in Finland but Wanxiang indicated it plans on shifting production to the United States as soon as possible. The sedan will carry on with a gasoline-electric plug-in hybrid drivetrain developed before FIsker’s highly-publicized downfall and a lithium-ion battery pack manufactured by A123 Systems, a firm that joined Wanxiang’s growing portfolio after filing for bankruptcy in late 2012.

Wanxiang will benefit from economies of scale by teaming up with VL Automotive, a company founded by Bob Lutz and Gilbert Villareal, to build a high-performance variant of the Karma powered by a Corvette-sourced V8 engine (pictured). Called Destino, the V8-powered Karma will be built in VL’s Auburn Hills, Michigan, assembly plant.

Although some have criticized Lutz for turning a taxpayer-funded environmentally-friendly sedan into a muscle car, Wanxiang praised VL Automotive for creating “the first true American luxury grand tourin sedan in decades.”

Lutz has not put a price tag on the Destino but he previously hinted it would carry an $80,000 premium over the $100,000 Karma.

“This company has the potential to become a global car company,” Tavares said during a conference call with analysts, as quoted by Bloomberg.

The executive, a Renault veteran, suggests the company will focus on a smaller number of models that will “scare” the competition as they arrive on the market in the coming years.

The turnaround is said to require a significant boost in research-and-development spending. With current R&D spending slightly below the industry average, Peugeot has failed to keep up with competitors in the European market and abroad.

The Chinese investor also plans to expand cooperation and form a strategic partnership, though full details aren’t expected to be revealed until a formal agreement is established in March. The Chinese automotive market represents one of the largest in the world and continues to grow at a much faster pace than Europe or other regions.

The rescue deal has yet to be approved by the European Union and shareholders, though Tavares is confident that it will proceed as planned.

“A faster version of that car would be at the top of most people’s wish lists, but like the cabriolet, it is hard to justify a business case to push either model into production based on the current sales,” Toyota’s VP of European R&D, Gerald Killman, told Auto Express.

The company is reportedly confused about the platform’s sales performance, after the cars were extremely well received by the automotive press, though Killman personally believes the engine “could use a little bit more.”

Subaru has teased a STI-badged BRZ, however the company’s special editions are mostly focused on aesthetic tweaks. All platform variants currently utilize the same 200-horsepower four-banger, forcing power-hungry tuners to bolt on their own aftermarket turbocharger to raise output.

Separate reports suggest Toyota may be preparing to resurrect its Supra nameplate, potentially as a production version of the FT-1 concept, while a new entry-level sports car is expected to be slotted below the FR-S with a $16,000 price tag and a 2017 launch target.

Initial reports suggested the Levante would be built at Chrysler’s Jefferson North plant in Detroit, where it would have made sense to share a platform with the Grand Cherokee. Later reports pointed to an underutilized plant in Mirafiori, Italy as the likely production facility due to capacity concerns at the US factory.

The new SUV is expected to integrate Maserati’s Q4 all-wheel-drive system and Skyhook suspension, which were initially engineered for the Quattroporte and Ghibli.

Powertrain options have yet to be confirmed, though a 3.0-liter V6 with 410 horsepower and a 3.8-liter V8 with 530 ponies have been mentioned. European buyers may also have a choice for a 275-horsepower turbodiesel mill, while all packages are expected to utilize an eight-speed automatic transmission.

Despite the apparent platform switch late in development, the Levante is expected to arrive in showrooms sometime next year.

The drama surrounding Volkswagen’s Tennessee facility has encountered a new twist, as the company’s labor leader, Bernd Osterloh, threatens to block any expansion plans in the anti-union South.

Osterloh argues that a works council will be a central element in any decisions related to new US plants. He sits on VW’s supervisory board as one of ten works-council representatives in the 20-member panel, suggesting the threats may easily be enforced.

“I can imagine fairly well that another VW factory in the United States, provided that one more should still be set up there, does not necessarily have to be assigned to the South again,” said Osterloh, as published in the German newspaper Sueddeutsche Zeitung and quoted by Reuters.

The labor leader’s threats appear to be focused on implementing “co-determination,” a popular system in Germany that gives workers important roles in company management. VW representatives have credited this approach with helping the company achieve its current status among the top three global automakers.

Conservative groups urged plant workers to vote against the UAW over fears that unionization would make the state less competitive in the industry. US Senator Bob Corker suggested the company would choose the Chattanooga plant to build a new SUV if the workers rejected UAW representation, while State Senator Bo Watson threatened to kill tax incentives over a unionization move.

“The conservatives stirred up massive, anti-union sentiments,” Osterloh said. “It’s possible that the conclusion will be drawn that this interference amounted to unfair labour praxis.”

Unless the UAW can prove that the legislators were commenting on behalf of the company, which maintained a neutral stance and appeared to welcome the move, the interference claims may be difficult to pursue.

Regardless, VW established an agreement with the UAW to establish a German-style works council if the workers voted for representation. The approach would have been a mix of the German system and the UAW’s typical structure in other US plants.

VW has voiced its intention to establish a works council in Chattanooga despite the UAW rejection, though it is unclear if the company can fully mimic its German operations without violating laws that restrict company-funded unions.