AC, the sportscar specialist is establishing its first US manufacturing base with a dedicated factory in Conneticut to build a brand new model. Work on the factory begins in summer and production is scheduled to start in autumn 2006, building models with bodies constructed of lightweight carbon fibre. The models it will produce are the Ace, Mamba and the MK VI - an all new version of the Cobra.

Autoliv, the world's largest maker of air bags and seat belts, plans to restructure its operations in Australia, cutting 565 jobs in order to lower costs. Autoliv has been gradually moving production from countries in Western Europe and the United States to regions where labor costs are lower, mainly in Asia and Eastern Europe, amid fierce price pressure from car manufacturers. "This reduction of 500 jobs will be phased in during this year and 2006," the firm said.

BMW Chief Executive Helmut Panke reiterated the German luxury carmaker's forecasts and played down the dollar's weakness in a recent newspaper interview. "We expect a new record in unit sales (in 2005)," he said. "As for results, we are striving to reach more or less the same level as last year despite currency effects and high raw materials prices." Panke added that BMW still expected to sell more than 1.4 million units by 2008, giving it a market share of over 2%.

BMW could be landed with a bill for tens of millions of pounds for the recycling of cars produced by Rover, its collapsed former subsidiary. The UK Department of Trade and Industry is considering how it will allocate MG Rover's liabilities, under a European directive that makes all carmakers responsible for disposing of old cars made by them. When a company becomes bankrupt the liability can be pushed back to the owner of the marque.

Bosch says that most major carmakers will introduce direct injection petrol engines in the next few years, says Dr Rolf Leonhard, executive vice president of engineering in Bosch's petrol systems division. Bosch expects that the total global market for petrol direct injection systems will be around 3 million units in by 2008 and says the growth could be similar to that enjoyed by the diesel five years ago.

DaimlerChrysler expects a truck boom in the key U.S. market to continue until at least 2007. The group's U.S.-based Freightliner truck business forecasts strong demand will continue and might not even slow down in 2007. Meanwhile, MAN, Europe's 3rd biggest truckmaker expects a "plateau year" in 2005 because economic weakness in key market Germany. Swedish truckmaker Scania, says 2005 would be an "off year" for market growth. Volvo, said in April it saw the European heavy truck market potentially coming in at the lower end of its forecast of 0 - 5 % growth this year.

Fiat's car sales plunged 25.5% as Italy's worst economic crisis since the Second World War scared consumers away from showrooms, while a strike by lorry-drivers delayed car deliveries. Carlo de Benedetti, a former top Fiat executive, says nothing could save the cost-laden company from a calamitous downward spiral. "I am sorry to say that Fiat no longer has any hope. "

Ford plans to spin off car rental unit Hertz, its wholly owned subsidiary. Ford has filed a registration statement for an initial public offering (IPO) for part of its stake in Hertz, the world's biggest car rental group, with a fleet of more than 500,000 vehicles. The move is also consistent with the revitalization plan Ford launched in 2002.

GM, plans to close plants and eliminate 25,000 manufacturing jobs in the USA by 2008. Chairman and CEO Rick Wagoner told shareholders that the capacity and job cuts should generate annual savings of roughly $2.5 billion. About 1 out of 6 jobs in the USA will be eliminated. GM posted a $1.1 billion loss in the first quarter and its U.S. market share has fallen to 25.4 % from 27 % a year ago.

Marcos Engineering Ltd has announced the new Marcos TSO GT2 coupe. The GT2 delivers superb handling and stunning performance. Weighing just 1150 kg, the GT2 can accelerate to 60 mph in 4 seconds and to 100 mph in 9 seconds with a top speed of 185 mph. Its has 50/50 weight distribution, 475 horsepower and will cost 49,995 pounds Sterling.

MG faces another problem as its main supplier says it has seen no "sensible" business plan that would lead it to provide components. StadCo has already announced the closure of its Coventry plant, which made the bodies for the MG TF sports car. The main hope for re-employment of some of Rover's 6,100 workers is a revival of the MG brand, with 3 bidders for MG and the TF car short listed by PwC, administrator of the failed company.

Navistar plans to form a joint venture with India-based automaker Mahindra & Mahindra Ltd. to manufacture commercial trucks and buses for India and export markets. Over the next 2-3 years, the companies plan to invest more than $80 million in the venture, to be called Mahindra International. The joint venture will employ 300 engineers and will be 51% owned by Mahindra & Mahindra and 49 % by Navistar's International Truck and Engine Corp. subsidiary.

Tata Motors expects its completely built buses business to generate US$1 billion in five to 10 years. Traditionally a commercial vehicles chassis manufacturer, Tata has forayed into the coach building business launching two bus brands Starbus and Globus and establishing bus body manufacturing facilities around the world using the franchise model. Tata says "buses make up only 15% of the domestic commercial vehicles market. But in countries like Russia or China they are up to 45 or 50%. "In India we have definite headroom for growth."

Toyota Motor will boost its defenses against any potential takeover bid by increasing to more than 50 % the stake its group holds in its major shareholder Toyota Industries Corp. The company aims to fix the share ownership structure of the group to block a possible attempt by a hostile bidder. Speculation has been rife that Toyota Industries, the 80-year-old textile-machinery maker from which Toyota Motor was spun off, could be targeted for a takeover as a cheap way to acquire a significant stake in the profitable automaker.

Toyota has said, for the second time in about 2 weeks, it is likely to raise U.S. prices and give struggling Detroit car companies room to raise theirs. But U.S. antitrust experts say this is ill-advised and borders on illegal. Inviting competitors to match your price increases can be illegal "price signaling," says lawyer Jim Weiss, former head of an antitrust unit at the Justice Department.

Volkswagen plans to cut 10 % from its materials costs by 2008 and step up buying from suppliers in China. Lopping a tenth from materials costs would save around 1 billion euros ($1.22 billion). VW officials had already signaled that they were eager to get steel from China, and the company had already received and was processing its first Chinese steel shipment.

Volkswagen is considering an affordable saloon that will compete with Renault's Logan in emerging markets. VW code-named the program the 3-K Project, because it is aiming for a manufacturing cost of 3,000 Euros per car. That would let it compete with the Logan on retail price. If the VW group board approves the program, VW could launch the 3-K in China by 2008.

Hans-Michael Schwurger of Germany, has been banned from driving for a year after fitting a flashing blue light to his car.

Motorists in Torstosa, Spain drove off with over 1500 Euros worth of free fuel after a pump attendant fell asleep at the petrol kiosk.

A learner driver's life was saved in Russia when her car landed in a tree after crashing over the edge of a fifth floor carpark.

Car thieves in Kuala Lumpar Malaysia, hacked off an accountant's finger to steal his Mercedes S-Class, which featured a hi-tech fingerprint recognition system.

A German navy helicopter got a parking ticket after making an emergency landing on a busy Mogladishu road in Somalia. It was delivering a casualty to hospital at the time.

Mr Harold Tomlin of Missouri USA is in profit as his stolen car as been returned - after 26 years. The thief took good care of the $1500 1979 Corvette, and its now worth $25,000.

Police in Ogulin, Croatia stopped an 80-year-old for driving the wrong way down a motorway. He told officers he thought oncoming motorists were waving at him to warn of a speed trap.

Police in Reykjavik, Iceland stopped a drunk driver - and discovered they had arrested him 90 minutes earlier for the same offence in a different car.

A stranded motorist in Germany was taken on a 100 mph joyride around Berlin by a good samaritan driver who offered him a tow. Stuck behind in his car, he only came to a halt when the tow rope broke.

A tunnel dug by men intending to rob a bank in Montreal, Canada collapsed when tarmac fell into it and caused chaos to traffic.

A woman in Kentucky, aged 73, told police that she had to drive at 85 mph because her car rattled if she went any slower..

Officials in Turkey, who are trying to improve the countries appalling road safety record, have opened a museum of crashed cars in Istanbul to try to shock people into driving more carefully.