The European Union has decreed that the carbon dioxide emissions of new cars must be limited to 130 g/kg by 2015 at the very latest in a move designed to reduce the rate of global warming.

However, the plans, which were watered down following opposition from Germany, still need to be ratified by individual member nations.

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL171152720081201?sp=true

New car registrations in Germany plunged by 18 per cent during the month of November, the VDIK association of foreign carmakers said.

In an interview with Reuters, VDIK president Volker Lange predicted annual car sales would dip to a new record low for post-reunification Germany.

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL232748220081202

Meanwhile, the VDA association of German carmakers has given a further warning as to the likely decline of the German auto industry in 2009.

According to the group, new passenger car registrations for the year will be less than the 3.1 million reported for 2008.

http://www.reuters.com/article/economicNews/idUSL311978020081203

Falling sales have led Daimler to reduce output at its largest Mercedes-Benz factory, the BBC reports.

Employers will now only work a four-day week from 12th January until 31st March at the very earliest, with a limited roll-out of a three-day week also on the cards.

BMW is also limiting production at its plant in Munich.

http://news.bbc.co.uk/1/hi/business/7772212.stm

The chairman of the Japan Automobile Manufacturers Association predicts car sales in Japan will be the worst for around 30 years in 2009, Reuters reports.

Satoshi Aoki expects US economic instability to impact negatively on the global auto market over the next 12 months, ensuring demand remains muted.

http://www.reuters.com/article/es. Euro. Rpt/idEST21272420081218?sp=true

Diminishing demand for motor vehicles and a strong yen have combined to leave Honda facing a loss in the second half of its business year.

The company has responded by reducing dividends and management pay, and postponing production capacity increases until conditions are more favourable.

http://www.ft.com/cms/s/0/083a2fba-cc0f-11dd-9c43-000077b07658.html

Honda's chief executive Takeo Fukui has announced plans to develop a new entry-level car to meet growing demand from emerging economies such as India.

The car is expected to be introduced within two to three years. Meanwhile, Honda intends to focus on hybrid and small cars at the expense of medium and large-sized diesel models in the wake of the credit crunch.

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSTKB00316120081217

Honda has placed its plans to introduce more diesel-powered vehicles to the US under the microscope due to the relative prices of petrol and diesel and the cost of raw materials used in the manufacturer's exhaust clean-up system, company spokesperson David Iida told the Associated Press.

The news provider went on to speculate that Honda's lead might be followed by other vehicle manufacturers as they attempt to protect themselves from the economic crisis.

http://freep.com/article/20081211/BUSINESS01/812110350

The French automobile industry has not yet reached its nadir, Renault chief executive Carlos Ghosn has warned.

According to Reuters, French new car registrations in November 2008 were down 14 per cent on 2007 levels, and Mr Ghosn believes things will get worse before they get better.

"I do not see a quick end to the crisis the automobile sector is going through," the news provider quotes him as telling French media. "We have not yet touched bottom."

http://www.reuters.com/article/marketsNews/idUSLF38516520081215

The French government has attempted to stimulate demand for cars by providing consumers with incentives to make vehicle purchases and giving them greater access to finance.

President Nicolas Sarkozy has identified the French car industry as being especially worthy of government support given its importance to the country's economy.

Consumers will be given a subsidy if they buy an environmentally-friendly car and €1 billion will be made available to car financing units to help people fund the remainder of their purchase.

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL429983920081204

Plans jointly formulated by Nissan and Renault to open a factory in India have been revisited by the automotive giants as they adapt to the economic downturn.

Production will still start at the plant in Chennai in 2010 but at a reduced capacity - there will now be only one shift rather than two in the initial stages.

http://news.bbc.co.uk/1/hi/business/7772860.stm

Indian car sales were hit by diminishing demand in November, it has been revealed.

Research conducted by the Society of Indian Automobile Manufacturers (Siam) shows truck and bus sales dropped by close to 50 per cent on 2007's equivalent figures, constituting the biggest slump for eight years.

Siam has blamed the poor results on the high cost of borrowing, a lack of available credit and dwindling economic growth.

http://in.reuters.com/article/businessNews/idINIndia-36953620081210?sp=true

In Brazil, new automobile sales plunged for the second month in a row last November, with automakers' association Anfavea blaming the fall on the unfavourable economic conditions.

Sales of both cars and trucks fell 25.7 per cent on October levels, although sales were still up for the year to November.

http://www.reuters.com/article/economicNews/idUSN0437700220081204

A report from the China Association of Automobile Manufacturers showed the country's passenger car sales for November 2008 were down 10.28 per cent on 2007 levels.

This ensured a third consecutive monthly decline following falls in August and September.

In a Reuters interview, a senior executive at Dongfeng Motor Group blamed the slump on the global financial crisis and stunted economic growth in China.

The decline has been tipped to last well into 2009.

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSSHA31429020081205?sp=true

US car sales for November were hit by falling demand, research by Autodata Corp shows.

A 37 per cent fall was reported, reducing the annual rate of growth to its lowest for 26 years.

The slump has been attributed to consumer unease in the wake of the ailing economy and automakers' pleas for government aid.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a91kPEWlcOos&refer=home

General Motors reduced its production forecast for the fourth quarter of 2009 following a 41 per cent fall in its November sales.

"Every manufacturer is posting awful numbers and we are no exception," GM North American sales chief Mark LaNeve confirmed.

Ford, Toyota and Chrysler LLC all reported declining sales figures for the 11th month of last year.

http://online.wsj.com/article/SB122823927738572881.html