A car was winched out of the sea in Southwest Iceland yesterday. After the car was brought ashore, the body of a dead woman was found inside. Read the full story

Fewer cars are driving the Reykjavik streets and the number of bus passengers is going up. Car traffic in the Icelandic capital has been decreasing slowly but constantly since the banking crash, after massive expansion in previous years. Read the full story

A Swedish man has been arrested in the US on suspicion of being part of a major cocaine smuggling ring. The 47-year-old, who has not been named, is accused of planning to hide 12 kilos of the class-A drug in car interiors before shipping them to Sweden. Read the full story

So far this year, 3,737 new cars have been registered in Iceland, compared with 15,343 after the same number of days last year. That represents a 75.68 percent drop in new car sales between years, mbl.is reports. Read the full story

Last night in the quiet town of Borgarnes, located about 70km north of Reykjavik, a young man stole a car and an attached trailer. The trailer was found at a place called Snorrastadur not far from Borgarnes. The car was found also near the trailer and was poorly driven. The driver was apprehended and was found under the influence of drugs. Read the full story

The bankrupt US carmaker, General Motors has signed a preliminary agreement with the Swedish sports car manufacturer Koenigsegg to purchase Saab. All three companies involved have confirmed the tentative sale, which is expected to be sealed by the end of the third fiscal quarter. Read the full story

The innovative Norwegian car marker Think is seeing production of its environmentally-friendly electric car grinding to a halt just as it was starting to gain momentum. The concept of the compact Think City car is perfectly timed considering ever-increasing global climate worries, but a lack of financing may see the production terminated just two months after it launched its sole model. Read the full story

In a new survey just released, 68 percent of Swedes want to see the Swedish government bail out its beleaguered carmaker Volvo. Although Volvo is owned by US carmaker Ford, Swedes would like its government to temporarily take control of the nation’s iconic firm, as many residents fear Volvo may disappear entirely from Sweden in the near future. Read the full story

Visitors rushing to Iceland to make the most of the low value of the krona can also take advantage of cheaper car hire. The cost of hiring a car in Iceland has recently been slashed by up to 70% by some companies in Reykjavik. Read the full story

In a few months, Indian carmaker Tata Motors is planning to begin selling an electric version of its hatchback car called the Indica in Norway. Working in conjunction with a Norwegian firm, the company will make the Indica widely available throughout the country in 2009 if sales go well.

Tata’s managing director, Ravi Kant, told Reuters that “this is one of the technologies that we are looking at, as you know that electric cars are almost zero emission. Right now we want to Read the full story