BMW is developing two multi-purpose vehicles that are mini-van like, though BMW prefers not to use that term. The vehicles, which are known as RFK-1 and RFK-2, have been under development for more than a year, have 6 seats and 18-inch wheels and are based on the X5/X3 platforms. A decision on whether these vehicles will be produced is expected later this year. BMW's dilemma is whether they can enter this segment without affecting the brand image.

European vehicle production will rebound to at least 19.5 million units this year, driven in part by a surge in U.S.-style sales incentives, predicts CSM Worldwide, the Detroit-based forecasting service. CSM says the incentives, led by GM and VW, represent uncharted territory for the European market and could dramatically change the balance between old-guard producers such as Fiat, PSA and Renault and aggressive newcomers such as DaimlerChrysler and Toyota.

Hino Motors' attempt to buy a large stake in truck maker Scania AB has been rejected on the grounds that its offer was too low, says a Financial Times report. Hino, which is Toyota's heavy truckmaking subsidiary, reportedly offered to buy shares held by Volvo AB. Volvo has a European Commission deadline of April 23 to divest its 45.5% stake in Scania, acquired as part of its blocked takeover attempt in 2000.

Honda will invest $167 million in Thailand to build a new compact car from 2007 which is to be sold in Europe. The new production line will have a capacity of 100,000 cars annually and so almost double Honda's capacity in Thailand where they already make the Jazz, City and Civic cars.

Hyundai will build its first European auto plant in Zilinia, Slovakia. The $870 million facility will produce up to 200,000 vehicles under the company's Kia brand in about 2006. Slovakia edged out Poland for the plant, reportedly because of slightly lower labour costs. Construction is expected to start almost immediately. Hyundai is 10% owned by DaimlerChrysler AG, and currently ships about one-third of its South Korean-made vehicles to Europe.

Hyundai may sell 3.3 million vehicles this year, surpassing Honda Motor Co. by 100,000 units. A Japanese newspaper says Hyundai was only about 110,000 units short of matching Honda's 2.91 million global sales last year and is in the midst of expansion in the U.S., Europe and China. Hyundai aims to sell 5.7 million units by 2010 to become a world top 5 auto producer.

Land Rover has dropped the name 'Discovery' for the new 3rd generation car, but only in the US. The firm elected to remove the badge as it didn't believe that Land Rover was established enough in the US. Instead the new model, which is to launched later this year, will be called the Land Rover LR3. Meanwhile in the UK it will be known as the Discovery 3.

Land Rover and International Tractors Ltd., an Indian unlisted tractor company, are planning joint production of a small car in India says Dow Jones. The plan is in its initial stages, with Land Rover, owned by Ford, likely to provide the technology for the project. Officials at International Tractors, in which Renault owns a 20% stake, weren't available for comment.

MG Rover has signed a letter of intent with Proton of Malaysia to work together to explore a number of potential collaborative projects. MG Rover and Proton will now engage in further discussions and as and when any definitive agreement is reached a further announcement will be made. Both companies are in need of a major product overhaul, and neither is in a position to achieve that from their own resources.

MG Rover may be moving the production line for their Rover 75 to Poland. MG Rover workers have reacted angrily to reports that the move is part of a bid to take over a former Daewoo plant. MG Rover say that discussions with the Polish government were continuing and had been going on for 2 year. The Polish firm Cornerstone has been recruited to help with negotiations.

Mitsubishi Motors Corp. has sold its 7.9% equity stake in Proton, Malaysia's national automaker, for about $104 million. The fate of the additional 7.9% stake held by Mitsubishi's parent, Mitsubishi Corp., is not immediately clear. The sale follows media reports that Proton wanted to sell its 14.8% stake in Mitsubishi and turn to its own resources - including its ownership of U.K.-based Group Lotus to develop future products.

Roland Berger Strategy Consultants say that North America and Europe can expect to lose up to 20% of their component production to Asia and eastern Europe by 2010. It says midsize suppliers will move capacity from the Midwest to southern states and Mexico, and larger suppliers will relocate capacity overseas. China will attract most of the new investment, boosting its share of supplier capacity in Asia by 165% by 2010.

Toyota Motor Corp. is more than doubling its product research and development effort for European vehicles. The expansion will include investing $93 million to expand the company's R&D facility in Belgium and add 200 engineers. Toyota says its aim is to better develop vehicles specifically for European tastes. Toyota sold 800,000 vehicles in Europe last year. It aims to be selling 1.2 million per year by 2010.

Toyota Motor Sales, U.S.A., Inc. and eBay have announced a marketing agreement that includes a one-year exclusive automotive manufacturer sponsorship on eBay. As part of the agreement, Toyota will launch a dedicated destination at http://ebay.toyota.com from which Toyota will showcase its entire new vehicle line-up, links to items listings on eBay and special promotional offers.

Toyota plans this summer to launch production of an "international multipurpose vehicle" in 9 countries on 3 continents, reports the Nikkei Business Daily. The plan calls for 5 models of pickup trucks and SUVs to be produced on the same chassis in 5 or more locations, with each plant dedicated to only one model. The vehicles will be built in Indonesia, Thailand, South Africa, Latin America and elsewhere.

Visteon Corporation has announced the creation of a new entity, Visteon Software Technologies SAS. The new subsidiary is located in Sophia-Antipolis, France, and will focus on the development of a wide range of on-board and off-board vehicle navigation systems - from low-cost, turn-by-turn navigation to high-end, map-based display systems with real time updates.

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

A 17-year old boy ordered a $150,000 BMW 760Li from a Jersey City dealership in the USA. He also telephoned the dealer pretending to be a banker who could guarantee the funds. He had the car delivered to his school and drove it for a month. By the time the police caught up with him he had already sold the car on to another dealer for $75,000 and ordered a replacement car.

A man in a wheelchair wheeled himself into a petrol station in Wiesbaden, Germany and assembled a shotgun in front of staff before demanding all the money in the tills. He then made a cashier wheel him 2 blocks away so that he could make a safe getaway.

A police academy in Stockholm, Sweden was forced to cancel a lesson in how to deal with drunk drivers because half the trainee officers arrived drunk after a heavy drinking session.

Pub landlady, Sue Gosney, who runs the George and Dragon in Aldbrough, England has been asked by her local council to leave her curtains open and remove any notices in the windows. The corner of Sue's pub is located on a dangerous bend which has been the site of many accidents, and local councillors believe that if motorists could see through the corner window they would have a better view of the road ahead.

A Benadictine nun could lose her driving licence after hitting a car parked outside her convent at Krzeszow, Poland, while drunk at the wheel of a tractor.

A thief in Lubeck, Germany who stole a $1500 stereo from a car, replaced it with a cheaper one. The local police said they had never heard of thieves doing trade-ins before.

A bus company in New York, USA has reprimanded 30 of its drivers - for not smiling enough at passengers using the service.

The owner of a VW Beetle in Sweden has finally used the 'first service free' offer that came with his car - 37 years after he bought it. Mr Dag Hellsing from Umea says that he hardly ever uses his Bug.

A 4 year-old boy and his 2 year-old brother were rushed to hospital in Florida, after crashing their mothers Honda. The eldest child had snatched the keys and driven the car across a golf course before crashing into a tree.

Police in Berlin had to tow away a car because its talking alarm wouldn't shut up. Anyone passing nearby was warned by the device: "Watch out ! You are too close."

Irishman Roger Martin, 37, travelled 8,000 miles to India to buy parts for his beloved 1957 Morris Cowley. But when he finally got back home to Dublin, he discovered that his car had been stolen.

Car thieves in an open prison in Hamburg, Germany are being made to paint signs for local beauty spots and picnic areas which warn motorists that car thieves are in the area.

A driver in France, who took too many anti-depressant pills, drove 93 miles the wrong way down a motorway before being caught by the police.

A policeman in Great Thatham, Essex, UK accidentally switched on the 'Police: please follow' sign on the top of his car. He only realised the mistake when he noticed a queue of 5 cars dutifully following his every move. 'He had to pull over and apologise,' said a colleague. 'Luckily they all saw the funny side.'

An artist has been ordered to pay damages to a pedestrian he tried to run over in Montpellier, France. The 35 year old driver said he thought the pedestrian was Osama Bin Laden, and that he should try to kill him.