Stockholm - Swedish heavy-vehicle maker Volvo on Friday reported a 37-per-cent drop in pre-tax income for the third quarter of 2008, citing the economic downturn in key markets.

Pre-tax income was 2.89 billion kronor (370 million dollars), compared to 4.57 billion kronor in the corresponding period 2007 for the Volvo group, excluding the Ford-owned car division.

Net sales were up 2 per cent to 69.6 billion kronor, while net income fell 36 per cent to 2 billion kronor.

New York - The country's third largest auto maker Chrysler Thursday reported losses of more than 1 billion dollars in the year's first half, with second-quarter losses of 565 million dollars.

Chrysler is in the midst of merger talks with General Motors after Germany's Daimler firm sold 80 per cent majority share to Cerberus investment company earlier this year.

Washington - The beleaguered General Motors Thursday said it is cutting more management jobs and stopping some employee benefits, including contributions to so-called 401K private employee savings plans, according to the Detroit News.

"The global credit crisis has had a dramatic impact upon the industry at large and new vehicle markets in North America and Western Europe have contracted severely," GM CEO Rick Wagoner and Chief Operating Officer Fritz Henderson were quoted as saying in a letter sent to executives.

Washington - Nissan Motor Co and partner Renault SA are eyeing a 20-per-cent stake in Chrysler, as General Motors also pursues takeover talks with the country's third-largest automaker.

Nissan-Renault has long been reported to be interested in a deal. On Wednesday, the Detroit News cited people familiar with the matter, as saying the proposal has been submitted to Cerberus Capital Management LP, the current majority owner of Chrysler.

Germany's Daimler still owns 20 per cent of its one-time subsidiary.

Under the Nissan-Renault deal, Nissan would likely provide the financing as Renault is weighed down by 5 billion dollars in debts.