China aims to export as much as $100 billion worth of cars and components a year by 2010, more than 20 times last year's figure. China's automotive exports rose more than a third last year to $4.7 billion, with $400 million of that coming from sales of whole vehicles. China is likely to become the component supply center for international auto manufacturers in the future, and the government will encourage the development of as many as 10 large-scale "automobile and component exporting bases" and allow the creation of huge multinational companies.

China is due to issue its auto industry policy statement within 3 months. The policy is still being polished, but it will drop requirements that local Chinese automakers account for 50% of the market by 2010 and that foreign OEMs must maintain separate sales channels for imported and locally produced vehicles. The new policy will limit foreign ownership in vehicle-producing operations to 50%. China plans to eliminate import quotas by 2005 and reduce tariffs on imported vehicles from 50% now to 25% by July 2006.

DaimlerChrysler and Hyundai Motor Co are in talks about the future of their alliance amid doubts about plans to build commercial vehicles and engines together, says the Financial Times The paper claims that Hyundai felt it no longer needed its German partner after its emergence as one of the world's fastest-growing carmakers, and the alliance was approaching a "critical juncture" and a "significant announcement" could come soon.

DaimlerChrysler plans to raise its stake in troubled Japanese affiliate Mitsubishi Motors Corp. to over 50% from 37% as early as next business year says Reuters. If DaimlerChrysler takes a majority stake in Mitsubishi Motors, it will be the first time that a foreign auto maker has made a major Japanese counterpart a fully consolidated unit.

Ford will have to use another name on its new mid-size family sedan due out in the US next year after a federal court ruled the Pep Boys automotive parts chain owns the name “Futura”. The new car, to be built in Hermosillo, Mexico, is the eventual replacement for the ageing Taurus and is critical to Ford’s fight to regain US market share. Philadelphia-based Pep Boys, which currently uses “Futura” on some of its tyres, reportedly sued Ford over rights to the name and a US District Court judge in Detroit recently ruled in the chain’s favour.

General Motors says it has no plans to buy an equity stake in Malaysia's top automaker Proton, so denying a media report. GM entered the Malaysian market last year, selling Chevrolet cars through Hicomobil Sdn Bhd. Analysts say Proton is ripe for a buy-out by a global automaker looking for a ready-made foothold in the growing Southeast Asian market. While rivals Toyota and Honda are expanding, Proton has seen its market share in Malaysia, drop to around half from some two-thirds previously.

Honda has filed an intellectual property lawsuit against China’s Hebei Shuanghuan Auto Co. alleging that its Rabo S-RV model is a copy of Honda’s CR-V small SUV. Honda last year exported 4,475 CR-Vs to China, where they sell for $39,250. The Rabo S-RV, which was introduced in October 2003, is priced at about $12,000. Copying entire vehicles is rare in China, but counterfeiting spare parts is rampant. Some estimate that more than 50 % of all spare parts sold in China are fakes.

Mayflower, the UK automotive engineering group, has called in Administrators after talks with its creditors failed. The BBC said that Mayflower's market value has fallen after a £20 million black hole was found in its accounts. According to the BBC, the three subsidiaries at risk are Mayflower's management services company, its automotive business Mayflower Vehicle Systems and its UK bus building business Transbus International.

Mitsubishi Fuso Truck & Bus Corp. says its chairman has resigned to take responsibility for a scandal in which the company took years to recall a series of defective trucks that had caused at least one fatality. The truckmaker, owned 65% by DaimlerChrysler and 20%t by Mitsubishi Motors Corp., said that a design defect in the trucks' wheel hubs had been responsible for more than 50 accidents since 1992 and issued a recall of 112,000 trucks in Japan. Until then, the company had blamed improper maintenance by users for the accidents.

Nissan will pay 7.64 billion baht ($US195 million) to take control of its operations in Thailand. Nissan has raised its stakes in Siam Motors & Nissan Co, the distribution company, and manufacturing firm Siam Nissan Automobile to 75% each from 25%, taking over management control from the Siam Motors group. Nissan chief executive Carlos Ghosn reportedly said the move followed a trend among major carmakers to consolidate global operations. "We no longer see minority shareholdings as the optimum way to run our business.

PSA Peugeot Citroen is considering returning to the US car market before Renault, France’s second-biggest carmaker, is able to establish a presence there. According to The Dow Jones Newswire, Peugeot chairman Jean-Martin Folz said: “We can’t ignore the fact that the American market is the biggest market in the world.” Peugeot, which holds 5.9% of the global car market, left the US market in 1992 when the sole model offered there was the 405 compact sedan.

Singapore has unveiled plans to act as a nerve center for manufacturing supply chains spanning Asia in a bid to make itself indispensable to multinational companies that form the backbone of its economy. The government said it would work with a companies to develop integrated supply chains, from product design to distribution, powered by the latest information and telecommunications technology.At the heart of the plan is the development of new applications of RosettaNet, an open Web-based messaging system has evolved since 2000 into the de facto standard for B2B communications.

Spain and Portugal are trying to unite their automotive sectors to offer the industry an alternative to the emerging economies of eastern Europe. Their intention is to form a bloc that can compete more effectively against the lure of lower wages and growing demand for cars in eastern. With three new plants under construction, the cluster of Poland, Czech Republic, Slovakia and Hungary will have a dozen auto assembly plants by 2006, compared to 15 in Spain and Portugal.

Tata Consultancy Services announced its intention to open an "Automotive Center of Excellence" in Detroit. The center will be fully functional within the next two months, and TCS anticipates hiring 50 local automotive professionals in the next 12-18 months to augment the firm's automotive specialists currently residing in Detroit. TCS executives cite the move as a key development in the expansion of the firm's global delivery model.

TVR cars may also be built in Italy in the future. The UK specialist car manufacturer may license assembly of its Tuscan sports car to an Italian dealer who wants to use a former Alfa Romeo facility for production. If approved, the cars could be assembled at Fiat’s disused Arese factory, north of Milan, where the Alfa GTV and Spider were built until 2001. Production of TVRs in Blackpool, England would not be affected.

Volkswagen Brasil if giving tickets to anyone who buys a VW vehicle, or has a car serviced by VW, for entry into a sweepstake to win a flight in space. VW have partnered with the American company - Space Adventures whose space flights reach an altitude of at least 62 miles (100 kilometres). The cost per person for a sub-orbital flight (including the four-day training programme) is $US98,000. The 11 VW customers who win will travel in a customised Ilyushin-76 MDK aircraft as used by Russian cosmonauts.

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

Rulger Hellen from Munich has been fined £500 and banned from driving for a year after being caught kissing his girlfriend as he sped along the autobahn at 113 mph.

Thieves who stole a hearse from outside a funeral parlour in Brindisi, India got more than they had bargained for. The hearse still had a coffin with a dead body inside.

Customers who take out cash from a bank in Seattle, USA to buy a new car are given specially scented dollar bills. The notes have been made to smell like leather - which the bank thinks amuses their clients.

Mrs Sandra White, 50, drove 16 miles in the wrong direction along the M66 motorway in Lancashire, England. She narrowly missed oncoming traffic, including a police car, as she continued her journey north of Manchester. Police officers finally trapped her as she performed a U-turn at the start of the M60 motorway. She was found to have been 3 times over the legal alcohol limit. Mrs White was jailed for 3 months, banned from driving for 18 months and ordered to retake her driving test. When asked her occupation she replied, ‘I work for the Police force as a laboratory technician'

Mr Hans Muller of Hamburg, Germany, was so worried about his shiny new Porsche 911 being stolen that slept in it to deter thieves. We he woke up he found that this house had been burgled during the night.

Mr Colin Sadd, 41, of Southey Green, Sheffield, UK, has been jailed for 6 years for his unusual obsession. Mr Sadd stole 5 cars from dealerships, drove each for a few hours, then cleaned and polished them thoroughly before leaving them to be found with their keys in the ignition. Mr Sadd, who does not own a car himself, has 155 previous convictions for car theft. When leaving the court his wife said ‘That’s it, I’m leaving him, he looked after those cars better than he looked after me’.

Police stopped a driver in Ontario, Canada, and discovered he was playing the violin at the wheel of his VW Jetta. The 54-year old man, who claimed he was warming up for a concert, has been charged with careless driving. A police spokesman said: “It was lucky he didn’t play the cello.”

Ambulance drivers in Moscow have been told off for renting out their vehicles to amorous couples. The main problem is that when a rescue call come in, the lovers have to vacate the ambulance fast.

Drunk father of two Lional Cerda of Bakersfield, California, has been arrested for getting his 10-year old daughter to drive him home from a night at the pub. His 14-year old son was also in the car at the time and was also found to be drunk.

A farmer from Wexford, Ireland, who heard a strange noise coming from under the bonnet of his Land Rover, opened it to find 3 new born owls living in the engine compartment. He has swapped vehicles until the owls are fully grown and can leave their nest.

Three men in Naples, Italy, were charged with horse rustling after police spotted a pony’s head sticking out of the rear window of their car. The men claimed they had found the animal and were just giving it a lift.

Hans Griel was caught speeding in Schontal, of Germany, despite having no fuel. In fact he had run out of petrol and was coasting downhill to a garage. While he was coasting, his car ran through a radar speed trap.

Teenage joy riders who steal cars in Jackson, Alabama are being punished by being made to attend ballet lessons. So far there have been no repeat offenders.