Alfa Romeo may return to the United States in 2007, although it has had 3 false starts in the past 5 years. But there are 2 advantages this time: 1. Fiat Chief Exec Sergio Marchionne has moved Maserati's ownership from Ferrari to Fiat Group so Maserati and Alfa can share platforms and the costs of federalizing cars for U.S. standards. 2. In the break-up of the GM/Fiat Group alliance, GM agreed to provide Northstar V-8 engines to Alfa and help federalize the cars.

Caterpillar Inc is developing a complete line of fully automatic, planetary transmissions designed specifically for on-road truck applications. Caterpillar plans to begin production of these transmissions later this year, with availability in 2006. The new transmissions are based on existing transmissions that have proven themselves in the company™s articulated trucks.

DaimlerChrysler Chief Executive Juergen Schrempp, who led the automaker through a series of high-profile mergers in the last 7 years, says the company must now focus on increasing profits instead of finding new partners. Schrempp, 60, oversaw the 1998 merger of Daimler-Benz AG and Chrysler Corp., which created the world's 5th-largest automaker. He defended that deal, even though DaimlerChrysler's market value has fallen 40 % since the merger.

DaimlerChrysler has fired 2 senior Mercedes sales staff and accepted the unexpected retirement of the head of German sales for Daimler. One former executive is said to have sent Mercedes workers on expenses to help his girlfriend build a holiday home. All are 3 are suspected of being involved in building property in Mallorca and exporting cars through the grey market into countries thought to be in eastern Europe and the Middle East.

Diesel-powered cars will account for as much as 65 % of European new-car sales by 2010, but fall below 40 % after 2015. The reason: Meeting tougher emission rules will increase manufacturing costs sharply, making the diesel less attractive to automakers “ and ultimately, car buyers. So predicts Rinaldo Rinolfi, director of the engine division at Fiat Research Center “ the man many consider the father of the common-rail diesel. Others agree, including GM.

GM has announced plans to consolidate mid-size car production at its Adam Opel AG plant in Ruesselsheim. The decision to build future generations of the mid-size Opel Vectra and Saab 9-3 at Ruesselsheim beginning in 2008 dealt a blow to worker hopes in Trollhaettan, Sweden. The business case, in terms of efficiency over time, for the Ruesselsheim facility was around $260 million.

GM has agreed to pay Fiat $2bn to terminate the companies' joint venture agreements and forestall attempts to force it to take over the Italian company's lossmaking car division. GM is paying a heavy price to cancel an agreement it signed with Fiat 5 years ago. In 2000 GM took a 20 % stake in Fiat Auto, subsequently reduced to 10 %, and agreed to a œput� arrangement that gave Fiat the option to sell the rest of its car unit to GM.

Johnson Controls Inc. has reached a tentative deal with Delphi Corp. to buy Delphi's global auto battery business for $212.5 million. Before the deal is finalized, JCI wants a long-term contract to supply batteries to General Motors. Delphi says its battery business generates annual revenues of about $600 million. The deal, if completed, would give JCI battery manufacturing capacity in China and South Korea via joint venture operations.

John Z. DeLorean, one of Detroit's best-known -- and most controversial -- automotive innovators, died on Saturday 19th March following a stroke. As a ˜rising star™ at GM he designed Pontiac's GTO muscle car in the 1960s, then left Detroit to launch his own car company. The radically futuristic, gull-winged car he produced, the DeLorean, gained worldwide recognition. But he saw his car venture crash spectacularly when he was accused and later acquitted of cocaine trafficking and money laundering and of defrauding investors.

MG as a brand name is thought to have been sold to the Chinese. According to the UK ˜Autocar™ magazine, Chinese car-maker SAIC made an initial payment of around £65m for ownership of the Rover 25 and K-Series engine during late 2004. But within the last few weeks, SAIC has paid an additional £80m payment for the rights to build the Rover 75 and also ownership of the MG badge.

Nissan has opened a spacious new design center in Farmington Hills near Detroit, which has already created the Nissan Azeal coupe that debuted at the North American International Auto Show in January. The $14-million studio adjacent to Nissan's Farmington Hills engineering center features 50,912 square feet of design, workspace for 30 designers and a high-security viewing area designed to provide plenty of natural light to evaluate designs.

Renault has sold its 17.9 % stake in heavy truck maker Nissan Diesel Motor Co. Proceeds are estimated at $228 million. "Given the successful revitalisation and the fact that Nissan Diesel has always been a non-strategic investment for Renault, Renault has decided to divest its shares," the car maker said. The French company had originally acquired the shares in Japan's fourth-largest heavy truck maker in July 1999 as part of an alliance with the Nissan Motor Co group.

Skoda Transportation of the Czech Republic is said to be looking for a partner to produce buses in Bulgaria. Bulgaria's has closed its only bus plant in Botevgrad, 40 kilometres (25 miles) north of Sofia and lost its local market to foreign competitors after the collapse of Communism in 1989. Bulgaria plans to invest some EURO billion (US$7.9 billion) to modernize its transport infrastructure after joining the EU in 2007.

Smart as a brand may yet be closed. All options remain on the table for Smart, including a closure of the brand altogether. That is what DaimlerChrysler CEO Jürgen Schrempp told financial analysts this month.œWe are known for unpopular decisions,� Schrempp told the analysts. Smart has lost E2.6 billion since the brand was launched in 1998, analysts estimate. Losses this year could be as high as E600 million.

Tata Motors, India's largest combined passenger car and truck manufacturer, has set itself an ambitious target of $1bn in sales by 2010 from its revamped coach and bus unit. Ratan Tata, the company's chairman, launched 19 buses and coaches this month in an attempt to capitalise on an expected increase in highways and other road infrastructure in India. Tata has also acquired a 21% share in Hispano, a privately owned Spanish body builder, for $16m.

Toyota has set a target to sell 5.4 million vehicles in overseas markets in 2005. Also, Toyota Motor Corporation president, Fujio Cho, says the world's second-largest automaker aims to sell one million hybrid vehicles a year. Toyota released the Prius sedan, its first hybrid car, which runs on a gasoline engine and an electric motor, in December 1997

Volkswagen AG will assemble its Passat mid-sized model in Malaysia with partner Proton Holdings Bhd starting at the end of this year. The subcompact Fox model will follow in 2006. Volkswagen last year agreed a partnership deal with Proton that aims to boost VW's presence in fast-growing southeast Asian markets. The accord did not involve taking equity stakes.

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

Jason Somerville of Broken Hill, Australia took his wife literally when she said she wanted half of everything in their divorce settlement – so he cut their car in half with a blowtorch.

As Carol O’Leary tended to a dog she had hit while driving her car in Wexford, Ireland, her car was stolen with her own dog inside. Both her car an dog were later found safely.

A knife- wielding robber held up a liquor store in Edmonton, Canada, and helped himself to beer and takings before running out to meet his accomplice in a getaway car – which promptly knocked him down and ran over his leg.

In Ripon, Wisconsin, Canada, police officer Scott King spotted a driver making an illegal turn, in a vehicle with a faulty headlight. The suspect, Christopher Studer, was then pursued by the officer at speeds of up to 100mph. Studer eventually abandoned his car and was seen to run – ‘nude from the waist down’ according to the police report – vault a fence , climb onto a shed roof then fall off, breaking his ankles. The reason he fled? Studer said he was embarrassed … presumably by his lack of underwear.

Police in Argentina are so hard up they are having to borrow cars from locals in Junin. Town officials are too poor to provide patrol cars as the country’s recession forces budget cuts.

Gems valued at £3m went missing in Germany after a diamond merchant crashed his car in Stuttgart. Drivers risked life and limb by stopping on the motorway to pick them up.

Honest taxi driver John Morganhanded in $3000 left in his New York taxi by a passenger – and then won $6000 on a lottery on the same day.

Dozens of cats have been borrowed from a Paris rescue centre and set loose on cars by a firm developing scratch-proof paint.

An exhibition of traffic cone sculptures has opened in Dublin. The display is called ‘What a Load of Old Bollards’.

Having broken into a car late at night in Germany, a drunken thief’s plans went wrong when he failed to prise out its radio. He fell asleep in the car still clutching his screwdriver, and was arrested by Berlin police in the morning.

A female lorry driver has been fired for using foul language when she found her truck had been blocked by another vehicle. Sandy Posner, 52, admitted launching a disgusting attack after finding she could not move her 18-ton vehicle. However, she took her employer to court, claiming unfair dismissal based on the fact that she had been lovers with her manager, and therefore he was not impartial. The court awarded her £4000 in compensation, but declined to order a reinstatement, based on the fact that she been partially ( estimated 25% ) responsible for her dismissal.

A thief stole a car in Menz, Germany without realizing the owner’s mother-in-law was sitting inside. The crook soon stopped and ordered the woman out.

Deceased Rhode Island driver Richard Kind, 84, has been buried in the car he owned for 41 years. The 1962 Chevrolet Corvair took up 2 burial plots.

French mechanic Paul D’Arbanville put petrol in his washing machine to remove grease on his overalls. Lighting a cigarette, he then blew up his Ciermont home ...... but survived.