Berlin - Automobile manufacturer Opel said Friday it was seeking credit guarantees from the German government, following a sharp downturn in orders.

Sources told Deutsche Presse-Agentur dpa the company was looking for some 200 million euros (252 million dollars) in support from Berlin and the four German states where it has factories.

An Opel spokesman said the company would only make use of the guarantees if the situation of its parent General Motors (GM) deteriorated to the effect that production and project development at the German subsidiary was affected.

Brussels - 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.

Berlin  - 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.

Washington - 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.

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."

Automobile 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.