ArvinMeritor Inc. has launched a hostile take-over bid for Dana Corp., offering $15 a share in cash and values the deal at $4.4 billion. A take-over, if completed, would combine ArvinMeritor's exhaust, sunroof, suspension and drivetrain products with Dana's drivetrain, chassis and frame products. Dana is ranked No. 13 on the list of global suppliers, with sales of $7.31 billion in 2002. ArvinMeritor is ranked No. 16, with sales of $5.85 billion.

Chrysler Group has improved its overall manufacturing efficiency by 8.3 % in 2002 compared to 2001, according to The Harbour Report North America 2003. The results are the best year-over-year improvement in the company's history and the second best of any auto manufacturer since The Harbour Report's inception in 1981.

DaimlerChrysler AG is reorganising its commercial vehicles division to put product development in one team and to separate its engines and parts business. The division employs 60,000 people at Mercedes-Benz trucks, buses and vans and Freightliner. The Powersystems components activities of Detroit Diesel and Mercedes-Benz, as well as transmissions, axles and steering systems will be put out to the division's regional vehicle producers and its parts will no longer be sold outside D/C.

FIAT's latest recovery plan involves raising $2 billion by selling 368 million new shares, closing 12 plants and eliminating 12,300 jobs. FIAT says the plan should see it return to net profit in 2007, and the company hopes to restore its debt rating from 'junk' today to 'investment' status by 2006. About 9,500 of the job cuts will occur outside Italy, including 1000 at Case New Holland in the USA where 5 plants will be closed.

Ford is calling its situation in Europe 'critical'. President Martin Leach says, "Only the fittest survive in this business, and we are not yet among the fittest." Leach says the unit must 'save every dollar from the bottom line" because he expects the European market to shrink by more than the 5% analysts have been predicting. Ford of Europe posted an operating loss of $249 million in Q1 2003.

GM and Saab have unveiled new technology to make sure the driver is not fed too much information at one time. The 'Dialogue Manager', manages information flow to the driver based upon the current driving environment. It decides when is a good time to relay messages to the driver via. If the vehicle perceives that the driver is experiencing a demanding driving environment, the system will delay messages that aren't safety-critical.

GM has told FIAT that legal issues now invalidate Fiat's ability to exercise an option that would force GM to buy Fiat Auto as early as next year. It is believed that Fiat's recent restructuring has diluted GM's 20% stake in Fiat down to 10% and that to restore its 20% stake, GM would need to invest $2 Bn. However, GM is unlikely to do this unless Fiat drops the option.

Honda has set up 3 research firms in Japan, Germany and the USA to conduct basic research on artificial intelligence, biotechnology and new materials. Honda has been investing heavily in such technology, including the advanced humanoid robot, Asimo. The firms are to employ professors and personnel in computer science and biotechnology. The research is targeted at improving vehicle safety and efficiency. The company will also conduct research on the human brain.

Isuzu Motors will supply small trucks to Mazda for sale under the Mazda brand in a bid to strengthen both companies' core businesses, the two firms said this month. Reuters positions the move as a complete pullout by Mazda from the development of trucks, as Japan's fifth-largest car maker aims to concentrate its limited resources on the core passenger car business to expand after a decade of lost growth.

Isuzu is waiting for approval from Chinese authorities to set up a joint venture firm with GM and the Shanghai Automotive Group for the manufacture of large-sized trucks in China. The joint venture will produce 10,000 large-sized trucks annually, it will be capitalized at 5 bln yen, with Shanghai Automotive Group taking up a 60 % stake and Isuzu and GM each holding 20%.

LandRover is moving its production of the Freelander Sports Utility Vehicle (SUV) from Solihull to Halewood because of concerns about quality and productivity at Solihull. According to the Financial Times the shift will relocate 1000 jobs. The 7200 workers at Solihull has resisted proposed work rule changes, including a ban on eating on the assembly line.

Nissan is to retool all its assembly plants to be capable of producing up to 4 chassis sizes and 8 vehicle models each by 2005. So far the flexible production system is used by Nissan in 6 plants including 2 in Japan and 1 in the USA. One of Nissan's tier1 suppliers - Nishikawa Kasai Co, is also adopting the system to help coordinate shipments to Nissan.

Minardi Formula 1 team is testing an Arrows A23 after the team purchased 5 remaining chassis and equipment for $700k at an auction of the bankrupt teams assets last month. Minardi team boss Paul Stoddart now owns the intellectual property rights to the Arrows design and so could legally race the cars. He says he prefers to further develop the Minardi chassis 'unless of course the Arrows turns out to be 2 seconds a lap faster'.

PSA workers at Peugeot Citroen's plant in Coventry, England have agreed to accept a pay cut. The 2400 hourly paid workers agreed to a 3% reduction in pay in exchange for saving 700 jobs. Peugeot had been considering dropping one of the plant's four shifts.

Renault Design Paris, has opened its premises in the heart of the Bastille district. The centre has 2 levels, one level is open to all Renault designers (reception, administration and documentation areas, etc.) while access to the second level is restricted (the drafting and modelling areas are reserved for staff in residence and a handful of others with special authorisation).

Toyota is to equip all the vehicles it sells in Japan with a system to automaticaly notify the emergency services in the event of an accident. The system, which includes global positioning technology, contacts an emergency center if the airbags deploy or the driver pushes a call button. Today the system is an option on 12 high-end vehicles but by 2005 it will be a standard offering.

Volkswagen refused comment on reports that it was poised for a take-over of MAN. The German magazine Der Spiegel, said VW's CEO, Bernd Pischetsrieder, had held talks to that effect with the finance head of insurance company Allianz, which is a major stakeholder in MAN. The acquisition would help VW move into the large truck sector, and could be a first step toward a purchase of Scania, which will be sold next year.

Volvo Trucks has signed a 50/50 joint venture agreement with China National Heavy Truck Corp, (CNHTC). The venture will be named Jinan Huawo Truck Company Ltd and production will start by the end of 2003. Volvo says that demand in China for heavy trucks is 50,000 pa and this is could grow to 100,000 pa by 2010. Volvo Trucks is now the first western truck manufacturer with an industrial platform for heavy trucks in China.

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

A Finnish man accidentally activated his mobile phone and called his wife as he was making love to his mistress in his car. The wife was doubly outraged since she heard her husband say 'I love you' to a woman she recognised as her best friend. The wife later went round to her friend's flat and beat her up and then proceeded to attack her husband with an axe. 'I only wanted to scare him' she told the judge in court as she received a 14 month suspended sentence for assault.

A Porsche owner in Florida avoided import tax on his new vehicle by purchasing his $120,000 car in Germany, stripping it down and then rebuilding it at his home in Orlando.

Police in Spain caught a garage owner pouring oil onto roads in Alaejos. At the police station he confessed to trying to increase business for his tow truck.

A man in Germany who slipped while washing his car and pierced his brain on the aerial, has made a full recovery.

A thief in Bergen, Norway stole $1200 from a garage after splattering the shocked cashier with a chocolate cake.

A $50,000 speed camera in Lille, France has been scrapped because it mysteriously takes pictures when no cars are around and uses up all the film.

Plumber Peter Clifford in Sydney, Australia has given up smoking after his cigarette ignited a leaking gas cylinder and blew up his van.

A motorist in Florida tried to dodge a speeding fine by telling a court that his passenger was behind the wheel at the time of the offence. Unfortunately the passenger was a dog.

The sister of Formula 1 driver Heinz Harald Frenzen, Nicole-Nadine Frentzen took her younger sister Samantha, 11, and a 12-year-old friend for a ride in a Mercedes before being stopped by police on Sunday. It's thought that Nicole-Nadine sneaked out with the keys while the rest of the family was watching the French GP. Her father, Heinrich-Harald, said that she has already set her sights on following her brother into F1. "She has petrol in her blood. She already takes part in cart-racing and regularly beats the boys," he said. "When she has her driving license maybe she will try out for Formula BMW, that would be the next step towards Formula One. "In the meantime, it's thought that Nicole-Nadine is unlikely to face criminal charges due to her age.