Car sales in Italy this year could go beyond initial forecasts of 1.6-1.7 million as a result of government incentives to buy cleaner vehicles, a major foreign automakers' association has claimed.

Gianni Filipponi, Secretary General of UNRAE, told Reuters: "The incentives are working, 220,000 contracts in February is a figure above even the most optimistic forecasts.

"We will have to revise upwards our expectations for sales in 2009."

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL487786720090304

Jato Consult claimed recently that about half of all new European cars offer average CO2 emissions of 130g/km, up from 39 per cent in 2007 and 24 per cent in 2003, Netcars reports.

http://netcars.co.uk/articles/-Average-new-car-emissions-fall--1409-3.aspx

Chrysler would be in favour of the US government creating a "shotgun marriage" with General Motors (GM), Barclays Capital analyst Brian Johnson told Bloomberg.

The troubled pair are seeking $21.6 billion in new loans as part of President Barack Obama's plans to revive the country's economy.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9iHrc4wEEGc&refer=home

The Russian government has revealed that it will invest two billion rubles (£40.5 million) to provide subsidies for consumers buying any of 30 domestic and foreign models, Reuters reports.

The move, announced by the ministry of industry and trade, represents an attempt to revive the Russian auto sector after year-on-year sales slumped by 33 per cent in January.

http://uk.reuters.com/article/motoringAutoNews/idUKTRE51N2RR20090224?sp=true

A range of government measures have played a major role in the 19 per cent increase in small-car sales in China recorded by the China Association of Automobile Manufacturers during January, TIME reports.

Special incentives for rural buyers, halving sales taxes for vehicles of 1.6 litres and under, and lower road taxes and fuel prices have all made valuable contributions, according to the news provider.

http://www.time.com/time/world/article/0,8599,1882172,00.html?iid=tsmodule

Meanwhile, four major Chinese automakers have been picked to lead mergers and become larger producers as part of a plan to restructure the country's auto industry.

SAIC Motor, FAW, Dongfeng and Changan have all been selected for the task, the Shanghai Securities Journal revealed.

http://uk.reuters.com/article/asiaMergersNews/idUKSHA4878320090225

Most Chinese automakers - of which there are over 100 - are now heeding the call from Beijing and developing a new sense of urgency to tackle the situation, Reuters reports.

The government wants the current 14 major companies to be reduced to ten, but Guotai Junan Securities analyst Zhang Xin has explained that such a step must be approached with caution.

"There has been a lot of talk - or rather expectations - about Chinese snapping up US auto assets, but the automakers first need to make sure they have the ability to turn those assets around," he told the news provider.

http://www.reuters.com/article/reutersEdge/idUSTRE5280UW20090309?sp=true

Volkswagen Group Chief Executive Martin Winterkorn has expressed his belief that the company is in rude health as it looks to the future of the auto industry.

In an interview with the BBC, he predicted doubling sales in China in the next decade, an eventual recovery in Russia, another surge in India and the first signs of the corner being turned in the US.

"This crisis will really be a shake-out," he told the news provider at a recent media event in Geneva. "But the best days of the automobile are yet to come."

http://news.bbc.co.uk/1/hi/business/7920172.stm

New car registrations in Germany increased by 21 per cent during February, representing the best figure for the month in a decade, Reuters reports.

The VDA industry association revealed that 278,000 units were sold during the month, while domestic orders rose by 63 per cent, giving automakers their biggest backlog since 2001.

The improvement is being attributed to state incentives for scrapping old vehicles and switching to newer, cleaner alternatives.

http://uk.reuters.com/article/motoringAutoNews/idUKL332397020090303?sp=true

Matthias Wissmann, President of the VDA, has suggested in an interview with Reuters that the results increase the possibility of auto sales in Germany hitting three million this year.

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSBAT00273420090225

JD Power Chief of Global Forecasting Jeff Schuster responded to the slowing decline in January's US auto sales figures by suggesting that industry could be about to reach a turning point.

He told USA Today: "We believe we are nearing the bottom. Our expectation is for February or March to be the low point."

http://www.usatoday.com/money/autos/2009-02-26-auto-sales-low-point_N.htm

Opel has revealed that it intends to become independent from its parent company GM after 80 years together as part of a major restructuring process.

The German automaker is believed to require £2.9 billion in order to stave off bankruptcy and reorganise as a joint-stock company to attract investors.

http://www.guardian.co.uk/business/2009/feb/28/general-motors-vauxhall-opel

Carl-Peter Forster, Head of GM Europe, also confirmed that the plan will involve up to half of Vauxhall, which represents GM in the UK, being sold to private backers.

http://www.telegraph.co.uk/finance/newsbysector/transport/4864584/Vauxhall-turns-to-private-investors.html

The European Commission has now given the green light for the UK government to press ahead with its £2.3 billion plans to revive the country's troubled auto industry.

http://uk.reuters.com/article/businessNews/idUKTRE52A3IJ20090311

Commenting on the news, Business Minister Ian Pearson said: "The Automotive Assistance Programme is an opportunity for manufacturers and companies in the supply chain in the automotive sector to get ahead of the game and be leading global players in a low-carbon economy."

http://nds.coi.gov.uk/Content/Detail.asp?ReleaseID=395144&NewsAreaID=2

Toyota Motor Corporation has suggested that it may cut production by 12 per cent in the next fiscal year as it struggles with fading demand in the US, Bloomberg reports.

According to spokesman Yuta Kaga, the world's largest automaker may reduce output from 7.08 million to 6.2 million units from the start of the financial year on 1st April.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aDAlm3CBXsRE&refer=home

Meanwhile, fellow Japanese automaker Nissan has revealed that it intends to send a hybrid car with a diesel engine to the European market next year, Reuters reports.

The company unveiled concept vehicle Essence - a sporty luxury coupe - at the recent Geneva International Motor Show.

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUST37184220090303

Elsewhere, official figures have confirmed that car sales in India increased by 21.8 per cent on a year-on-year basis in February, reversing four months of declines.

The Society of Indian Automobile Manufacturers announced that 115,386 cars were sold during the month, aided by government stimulus packages designed to increase consumer spending.

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSBMA00251220090309

Among the most successful initiatives were banks lowering loan rates and firms passing on tax cuts, but industry officials believe a full-scale auto sales recovery is still some way off.

Dilip Chenoy, Director General of SIAM, told Reuters: "Some finance has started flowing into the market. But not in a significant way for two wheelers and commercial vehicles. Everyone is focusing on cars."

http://www.reuters.com/article/reuterscomService5/idUSTRE5280WL20090309?sp=true

Ford Motor Corporation has expressed its belief that it can grow faster this year than the expected Chinese auto market increase of ten per cent, Reuters reports.

The company's buoyancy is largely explained by the successful roll-out of its new small Fiesta, which surpassed retail sales targets by 17 per cent in its first two months on the market.

Nigel Harris, Head of Sales and Marketing in China, told the news provider: "If the industry is ten per cent, we will grow more than the industry this year."

http://www.reuters.com/article/ousiv/idUSTRE5281W320090309?sp=true

Ford has also revealed that it intends to cut production at its factories in Germany, Spain and Romania in the wake of slumping demand across Europe, the Financial Times reports.

In particular, the company confirmed that it will change from three shifts to two at its Valencia facility, while also regularly reviewing staffing arrangements in Germany.

http://www.ft.com/cms/s/0/336fdf18-1228-11de-b816-0000779fd2ac.html