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

A big reduction has been noted in the number of 17 and 18 year-old drivers in Iceland breaking traffic laws since a new law took effect offering driving bans and compulsory extra training to lawbreakers on provisional driving licences.

MBL.is reports that the findings were revealed at a meeting and press conference held jointly by the Public Health Institute of Iceland and Traffic Administration.

The laws on driving bans and special extra training came into force on 27 April last year and the Traffic Administration says that the results have surpassed even optimistic expectations.

According to law it is possible to ban a driver on a provisional licence if his/her conduct is at odds with the law and the rules of the road, or if Read the full story

In the latest move to expand the range of hybrid electric cars available to US consumers, Finnish car manufacturer Valmet Automotive announced a deal to build a new plug-in hybrid sports car at its factory near Helsinki.

A preliminary deal has been struck with US-based Fisker Automotive Inc. to build the company’s first production car, the Fisker Karma. Manufacture is scheduled to begin sometime in late 2009.

Fisker Automotive’s plans are to manufacture 15,000 of the plug-in sports cars at the Uuskiaupunki plant 240 kilometres north of Helsinki. The plant, owned and operated by Valmet Automotive, employs about 800 staff.

The first cars should be ready for North America by the end of 2009. Delivery is planned for Europe sometime in 2010. The new Fisker Karma can travel up to 80 kilometres on a single charge. Retail prices have been set initially at €50,000.

Valmet Automotive also produces Porsche AG’s Boxster and Cayman models. But the luxury German sports car company has said it will move production to Austria in 2012. The new deal with Fisker is expected to create several hundred new jobs for the local economy once production reaches full capacity.

British travellers looking for an inexpensive holiday this summer are being urged to consider driving through Scandinavia as DFDS Seaways is offering discounted rates on crossings to Europe and Scandinavia.

DFDS Seaways operates ferries to Esbjerg in Denmark, Amsterdam and Bergen and Stavanger in Norway, all of which are being discounted for summer travellers. The ports are interesting places to explore as well as gateways into the Mediterranean, France and the stunning scenery of Scandinavia.

Not only are driving trips often less expensive than aeroplane flights, they also allow travellers to relax. There are no airport queues, baggage restrictions or flight delays at the port. In addition, no one will lose or damage your luggage or force you to take off your shoes for security reasons.

Fares with DFDS Seaways include the price of overnight accommodation in a cabin onboard for two people and their car. Add-ons allow passengers to pre-book meals, more luxurious cabin accommodation or add more people to the travel plan. In addition for a slightly higher price, DFDS Seaways can transport motor homes, caravans and other large vehicles.

Standard fares for the crossing from Newcastle to Amsterdam start at £132 one way. For just £176 each way, passengers can travel between Newcastle and Norway.