So much for those high hopes.

The A3, Audi’s entry-level vehicle for North America, has run into a brick wall–figuratively speaking.  Audi had hoped to invest more resources in the upscale hatch, beginning with worldwide distribution of its 2.0 L diesel four, then bringing new bodystyles and trim levels for US buyers.  Sadly, that’s been put on hold due to a global downturn in sales.

Edmunds is reporting that production at the main factory in Ingolstadt will be temporarily halted due to the drop in demand.  Germany’s cash-for-clunkers program ran its course and is being blamed for the sudden drop-off in sales.  As Leftlane was quick to put out, the A3 is a pretty old vehicle by today’s standards.  With fresh compact competition coming from Japan to Audi’s native Germany, a new A3 is overdue.

We’d still welcome an RS3 on these shores.  We don’t know how much that’d do for Audi’s bottom line, but it’d make us happy.

Ford Motor is finalizing its sale of Volvo to Geely International, one of China’s premier car manufacturers.  The sale was long expected, but it still comes as an uneasy pill to swallow for Volvo’s following.  Geely execs privately assured both Ford and Volvo management that they would not interfere with the Swedish brand’s operations…yet.

Geely’s strategy is to take a hands-off approach and finance projects underway.  Geely and Volvo are expecting the new S60, the brand’s midsize saloon, to attract new buyers and bring steady revenue.  If all goes well there, Volvo should receive further funding for its extended-range electric powertrain development and a likely revival and expansion of the hi-po “R” line.  Expect a lot to be made of the C30 in the near-future in both cases.

Honda will be continuing its hybrid path with full steam, despite the poor reception to its Insight sedan.  The CR-Z, a sport hatch designed in the spirit of the old CRX, will be the attention-grabber.  The CR-Z will utilize lightweight materials, a streamlined form, and possibly a reworked version of the Inisght powertrain to create the greenest sport compact in the market.  Honda will also be producing a gas-electric version of its Fit subcompact, said to be targeting a $19,000 starting price range.  Both are reportedly scheduled for the 2011 model year and may premiere in the upcoming LA auto show. honda civic

Here’s a new promo video for the British-spec Mugen Civic Type R.  Mugen, Honda’s “official” tuner, has revamped the Japanese sport hatch.  The new tuner work comes with a new front spoiler, a giant rear wing, a busty exhaust, Mugen exclusive eighteen-inchers, hood vents, and a souped-up four-banger pushing up to 237 hp.

We may not get this, but we still have the Insight…