Stuttgart - Supporters of Chancellor Angela Merkel's conservatives remained divided Tuesday over whether to accelerate tax cuts to stimulate the flagging economy.

Her own Christian Democratic Union (CDU) toed the Merkel line that cuts funded by borrowing would not help. Merkel told the CDU annual conference the previous day that she would invest in highways and schools instead.

But the Christian Social Union, the CDU's counterpart in Bavaria state, re-iterated its call for instant reductions in income tax.

Stuttgart - German Chancellor Angela Merkel called Monday for investment in Germany's infrastructure, including the internet and highways, as a means to beat the financial crisis, but rejected immediate tax cuts.

She appealed for unity in her party, the Christian Democratic Union (CDU), ahead of a general election in September.

She was addressing a two-day party conference in Stuttgart amid deep divisions over how Germany should come to grips with the worst financial upheaval in decades.

Stuttgart  - BMW-Sauber and Toyota announced Wednesday that they will be the first teams to unveil their cars for the 2009 Formula One season in January.

BMW-Sauber is considering rolling out its F1.09 car at the Circuit de la Comunitat Valenciana Ricardo Tormo near Valencia on January 20 with team principal Mario Theissen as well as drivers Nick Heidfeld and Robert Kubica also making themselves available to the media.

Toyota will unveil its TF109 on January 15, making it the first team to introduce a new car for 2009, but has decided to do without a public presentation as a cost-cutting measure.

Stuttgart - Luxury German sports carmaker Porsche AG said Wednesday it was postponing moves to boost its stake in Volkswagen AG after a surge in VW shares and signs that the global auto industry was facing tough times.

Porsche had planned to build up a stake in VW to more than 50 per cent this year.

But Porsche chief Wendelin Wiedeking told the group's annual press conference that in the light of "the current economic circumstances, it is increasingly unlikely that we can achieve this goal in this year" with the company also warning it expects a fall in revenue as the slowdown in the world economy gains momentum.

Stuttgart - The crisis in the automobile industry is likely to get worse, the chi

Stuttgart  - Porsche is said to be downplaying plans to build a special economical four-cylinder version of the Boxter, the British Autocar magazine has reported, quoting company sources.

A Porsche spokesman described the report as "pure speculation." The next generation of the Boxter Roadster and the Cayman coupe would still be offered with a six-cylinder engine, the spokesman added. He pointed out that they would be more economical because of direct injection systems.