Auto Sector

EU threatens to take US to court over auto industry support

World Trade OrganisationBrussels - The European Commission on Friday threatened to refer the United States to the World Trade Organization (WTO) over Washington's plans to subsidize its ailing car industry.

"Of course, if it is illegal state aid, we will act at the WTO level," Commission President Jose Manuel Barroso told French radio station Europe 1.

Germany cements state rights at Volkswagen

Germany cements state rights at VolkswagenBerlin  - The German government threw down a gauntlet Thursday to both luxury carmaker Porsche and the European Commission, with Parliament in Berlin passing new legislation to cement state rights over Volkswagen.

Porsche has announced it will own just under 75 per cent of the giant car manufacturer when options fall due next year. A German state, Lower Saxony, owns just over 20 per cent of Volkswagen.

Democrats back down from bail-out for automakers

Democrats back down from bail-out for automakersWashington - Democratic leaders in Congress said Thursday they do not expect to pass an immediate bail-out for the struggling US auto industry, citing opposition from Republican legislators.

Christopher Dodd, a Democratic senator from Connecticut who chairs the Senate Banking Committee, said his party did not have the support for legislation to help the nation's three largest automakers, which are struggling to remain afloat amid a sharp downturn in car sales.

BMW and Daimler may combine China purchasing

BMW and Daimler may combine China purchasing Berlin - German premium-car rivals BMW and Daimler are mulling plans to combine more of their parts purchasing operations, including industrial buying in China and the United States, a news report said Wednesday.

Together, the two companies can exert heavy pressure on supplier companies to obtain lower prices for components.

In its Thursday issue, the newspaper Handelsblatt was to quote BMW chief purchasing officer Herbert Diess saying, "we are talking about bundling our purchasing activities in certain markets such as China and the United States."

Festive season fails to cheer auto companies

Festive season fails to cheer auto companiesAutomobile industry registered biggest decline in vehicle sale in eight years. Vehicle sale declined 14.42% in October with selling of 8.65 lakh units as compared to 10.11 lakh in the same period last year. Companies were optimistic to revive the growth of industry in the festival season but all these hopes ended in smoke with unexpected decline in auto sale.

Global slowdown, liquidity problem and high financing cost, severely impacted the automobile and commercial vehicle sector. Car purchase also declined following high finance rates by dealers.

Alfa's baby Mito gets a little help from Ferrari

Alfa's baby MitoHamburg - This is a small car with a big mission: Alfa Romeo's new Mito hatch is designed to grab sales from BMW's iconic Mini and breathe new life into the famous Italian marque at the same time.

Getting the looks right is essential, if young people are to be lured to the brand and the makers of this sporty three-door hatchback have come up with a cheeky shape which oozes style.

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