Audi plans to produce 1.1 million vehicles by 2008. The company, which is part of the Volkswagen group, sold 767,000 cars worldwide in 2003 and hopes to double its US sales within the same time frame. Last year the company sold a record 86,400 cars in the US.

BMW has restructured its BMW, Mini and Rolls-Royce product development operations and installed a new chief designer for its BMW brand. The reorganization moves Group Design Director Chris Bangle, away from direct responsibility for the styling of BMW's vehicles. Each division now has its own brand studio and Mr. Adrian van Hooydonk, 40, will now be responsible for the BMW brand studio.

DaimlerChrysler has asked Andreas Renschler, head of its Smart cars division, to prepare a rescue plan for Mitsubishi Motors but he will not necessarily become its new boss. Mitsubishi Motors expects an operating loss of 105 billion yen ($US983 million) for the year to the end of March, instead of the 45 billion-yen loss forecast 3 months ago. Newspapers have reported that DaimlerChrysler may be forced to pump up to $655 million into Mitsubishi Motors to bail it out.

Ford has agreed to pay $23.7 million to a family involved in a rollover accident in 1993 which killed 3 passengers. The crash involved a 1978 Ford Bronco which was driven by Mr. Juan Romo who swerved when he was cut up by another vehicle. The family sued Ford claiming the roof had been improperly designed. A Ford lawyer said Ford decided to pay to resolve this 10-year old case about a vehicle sold more than a quarter-century ago.

Honda and General Electric Co., have formed a joint venture to commercialize Honda's experimental jet engine for small airplanes. Honda's turbofan HF118 jet engine has been through more than 200 hours of flight tests. Now the two companies aim to get the engine certified and start mass production. The HF118 will compete in the 1,000- to 3,500-pound thrust class, well below the smallest jet engine in GE's current lineup, which produces about 5,900 pounds of thrust.

Jordan has joined fellow British-based F1 team BAR-Honda in threatening to move operations abroad to sidestep restrictive European legislation. British teams are concerned that the looming 35-hour working week, the European Arrest Warrants and anti-tobacco advertising legislation are all damaging for their sport.

Land Rover is starting to focus its attention on the booming car market in China, and believes the market there could become its third largest after North America and England by 2010 and is even considering an assembly operation there. Land Rover Managing Director Matthew Taylor says the company is reviewing Asian markets. Land Rover started knockdown assembly in Thailand a year ago, and Taylor sees the possibility of doing the same in China.

Negative equity is threatening to hit the US car market. About 30% of all customers walk into showrooms owing more money on their trade in vehicles than they are worth. That means the strong auto sales are being propped up increasingly by longer loans and staggering consumer debt. To qualify for new car loans, vehicle buyers are carrying forward an average of $3,700 in old debt into their next purchase, a figure that has more than doubled since 2000.

New Mexico is considering a law that would make all drivers exhale into an alcohol detection device in their cars before they could start the engine. New Mexico has one of the highest rates of fatalities caused by driving under the influence in the United States, and the bill would mandate the ignition lock to be installed in all cars sold or registered in the state by 2009. According to advocacy group Mothers Against Drunk Driving, New Mexico ranked fifth among states in the percentage of traffic fatalities caused by drunken drivers.

Nissan Motor's Presidentand CEO Carlos Ghosn has been elected to IBM Corp's board of directors, effective March 1. Ghosn, 49 was named Japan's most-admired executive this month. He was named cochairman of Nissan last spring and is expected to become chairman of Renault and CEO of both companies next year.

Proton, Malaysia's national carmaker has revived plans to acquire a car assembly plant in Indonesia as part of its expansion into Southeast Asia. Proton is said to have signed an LOI to acquire the plant in Cikarang, estimated to be worth $US20 million. Proton will initially produce the Waja sedan, followed by the Wira and Iswara models for taxis in Indonesia in August. Proton already has plants in Iran and China, and has expressed interest in expanding to Indonesia, Thailand and Vietnam.

Tata Sons ltd, the Indian producer of cars, trucks and buses says it is in preliminary discussions to produce its small Indica car in China. Tata says it does not mind if the car carries its own name or that of a Chinese partner or both. Tata, which is a $13 billion conglomerate, is also said to be interested in making trucks and buses in China too.

Tata Motors Ltd plans to buy the commercial vehicle unit of South Korea's failed Daewoo Group. Tata aims to buy the entire stake in the truckmaker by acquiring new shares to be issued at the end of March. Daewoo Commercial Vehicle, spun off from Daewoo Motor in November 2002, is the second-largest maker of heavy commercial vehicles in South Korea with a market share of 26%.

Truck sales in western Europe declined in Q4 2003 from a year earlier, hurt mainly by weak demand for vans. Demand for commercial vehicles reflects broader economic trends, and DaimlerChrysler, Volvo, Scania and MAN have suffered from a slump on both sides of the Atlantic in the last 3 years. Reuters says that most experts predict a gradual improvement in the European market this year if the fragile economic recovery continues, following an anticipated pick-up in the United States.

Vietnam will slash production from 43,000 units 22,000 vehicles this year due to a sharp increase in government taxes. Last year the government put a consumption tax on locally made cars starting at 24% and rising to 80% in 2007. An additional 25% tariff on imported car parts began this month. The 11 foreign OEMs, all working with local partners, say sales were brisk last year as consumers scrambled to beat the taxes, but now demand for new vehicles is almost zero.

Virgin Cars, the 4-year-old British online car retailer, is planning to sell out to Motor Solutions, another British Internet- and telephone-based auto seller, after failing to meet sales forecasts. Virgin sold fewer than 7,000 vehicles last year, while it had hoped to sell 50,000, but it seems buyers have been reluctant to give up the traditional dealership system. Terms of the sale would turn over control of Virgin Cars to Motor Solutions but give Virgin Cars owner Sir Richard Branson a 25% stake in the merged companies.

Volkswagen will idle 3 German assembly plants during April to use up remaining holiday breaks for workers. But skeptical investors say it is more evidence that the company's latest Golf isn't selling well. Earlier this month VW began offering free air conditioning to bolster sales of the 5th generation Golf. Past models have generated about one-third of unit sales and half the company's revenue.

Volvo Truck's Renault Truck unit and China's Dongfeng Motor Corp. have agreed to launch a venture that aims to build 7,000 trucks per year for the Chinese market by 2009. The partners hope to win government approval later this year. The deal enables Renault Truck to acquire an unspecified stake in Dongfeng's Dongfeng Liuzhou Motors subsidiary. The size and price will be determined later.

Volvo plans to introduce its first V8 production model in its 77 year history at the Paris auto show this September. The new engine, which is being supplied by Yamaha, will be offered in the range-topping XC90 and S80 models which will improve their competitiveness particularly in America.

On the lighter side .... some strange but true stories.

American pensioner Viola Rizza caused mayhem at Houston Airport after taking a wrong turn onto the runway in her car. She stopped when she hit the wing of a light aircraft.

A man from Metz, France was having a 'boozy' lunch when his pregnant wife started her contractions. So he the drove her at speed towards the local hospital. Unfortunately he was caught by the local police for drink-driving, and she then had to call an ambulance.

Thieves in Germany fled after trying to steal two motor homes from a showroom in Fulda. They accidentally wedged the first vehicle in a hole they had made in the wall.

Mrs. Sybil Venn of Calgary, Canada was about to pay $6000 for a car when a gust of wind blew the money out of her hand. Most of the bank notes were stolen by passing motorists.

A couple who broke up when he crashed her car, have married 56 years later when they met at a retirement home in Pennsylvania, USA.

A woman in New York, USA who bought a car that had been found dumped by the police found a dead body in the boot.

Mr. Sean Murray of Wexford, Ireland puts a big plastic owl on his car to stop other birds messing on it.

A cabbie in Dehli has been driving his cab backwards for 2 years after his gearbox stuck. Mr. Harpreet Devi says he has now mastered the art of going backwards.

A 13-year old car thief from Erlang, Germany was sent on a rehabilitation holiday to the Canaries - and promptly stole his parole officer's car while his back was turned.

Four teenage girls who stripped of and danced naked on a motor way bridge in Genoa, Italy, caused a 10-mile traffic jam as drivers stopped to watch them.

A man in Berlin, Germany had to postpone his plan to sell his Chevrolet Corvette, after a blackbird nested in the engine bay and laid four eggs.

When Mr. Trilane Ludwig of Vancouver, Washington state, USA was held by police after committing a motoring offense, he called his mother and asked her to bring $500 of his money so that he could be given bail. When the Police saw the notes they became suspicious, and have now charged Mr. Ludwig with counterfeiting currency.

A snorkeller in Newcastle, Australia drove a mile in his car with a shark clamped to his leg. Mr. Luke Tresoglavic, 22, arrived at his surf club and asked lifeguards if they could extract his leg from the shark's mouth. They succeeded by immersing the shark in fresh water.

A truck driver is recovering in hospital after being injured in a road accident on his way to pick up an award. Raymond Mattes, 53, from Idaho was on his way to Montana to collect a safe driving award.