AUTO

China's auto market, which overtook the United States as the world's largest last year thanks to a raft of policy incentives, has been a major bright spot amid a global industry downturn.

Japan can meet a 2020 goal of cutting greenhouse gas emissions by 25 percent from 1990 levels solely by policies that spur households and businesses to adopt low-carbon technologies, according to an environment ministry report.

China may scrap tax incentives for small cars next year if the market remains strong, and is rethinking plans to provide similar incentives for green-energy vehicles due to quality issues, a government researcher said.

Chinese carmakers, unscathed by a savage global industry downturn, are revving up their efforts to put cleaner, low-emission vehicles on the roads, counting on the green drive to help them catch up with overseas rivals.

Spyker Cars (SPYKR.AS) said on Thursday that production at Saab was on track, two months after the Dutch sports car maker bought the iconic but loss-making Swedish brand.

The consumer protection agency in Minas Gerais state, Brazil's second most populous, blocked the sale of Toyota Motor Corp's (7203.T) Corolla cars in the state from Thursday, citing risks of unintended acceleration in the cars.

China's Beijing Automotive Industry Holding Co (BAIC) said on Thursday it is building a plant to make vehicles using technology it acquired from GM's [GM.UL] Saab unit late last year.

China's Jianghuai Automobile Group (600418.SS) has made progress in joint-venture talks with Caterpillar (CAT.N) and Navistar International Corp (NAV.N) and sees such a tie-up as key to its strategy to improve profitability and target export markets, an executive said.

Chinese auto sales are set to grow faster than expected this year, with some industry insiders now picking growth of 20 percent in the world's largest car market, raising talk Beijing will cut incentives to cool growth.

Chrysler reported net losses of nearly $4 billion since it emerged from bankruptcy last year, but it had an operating profit in the first quarter and affirmed that it was on track to break even in 2010.

Distressed automaker General Motors Co repaid its government loans way ahead of schedule and is now on a strong path to viability, the Treasury Department said on Wednesday

Italy's Fiat is to separate its autos business from its better-performing industrial and truck businesses, and wants to achieve ambitious revenue and profitability increases across the board by 2014.

Volkswagen revealed first-quarter operating profit nearly tripled, driven by a sharp gain in sales and a restock of its inventories, and reiterated it expects to improve key results in 2010.

Ford Motor Credit's $1.09 billion asset-backed securitization was launched by underwriters JPMorgan Securities, Morgan Stanley and RBS on Wednesday into strong investor demand, market sources said.

Almost a year into its government-funded rescue, Chrysler remains a laggard in sales against the industry and analysts increasingly question if Fiat can change the game for its struggling U.S. partner.

Daimler shares soared nearly 8 percent, leading European auto stocks higher after the company unexpectedly hiked the 2010 earnings target for its luxury Mercedes arm.

Fiat's chairman will step down to be replaced by the vice chairman, and shares hit a three-month high on Tuesday on speculation the car maker would announce a spin-off of its auto business.

Daimler's Mercedes Benz cars unit is returning to its role as the company's cash cow.

A House of Representatives committee sought more information from Toyota Motor Corp on Friday about the automaker's review of electronic throttles.

Fiat SpA unveils its first strategic plan this week since teaming up with U.S. carmaker Chrysler and CEO Sergio Marchionne could outline a timeframe two years ahead for selling stakes in a combined company.

Management and unions at GM unit Opel are set to sign a deal that would be a milestone for the restructuring of the German carmaker.

Toyota Motor Corp (7203.T) will launch competitively priced Prius hybrid minivans using lithium ion batteries early next year, the Nikkei business daily reported.

The space-age Aptera might look like something straight out of a futuristic cartoon, but executives at the California start-up behind the electric vehicle say its time is now.

Europe's top carmaker, Volkswagen AG, expects 2010 to be a tough year despite signs of market improvement and said it remained optimistic it would develop better than the market.

France's Renault is bailing out of a loss-making joint venture with India's Mahindra & Mahindra after disappointing Logan sales, and is expected to focus on other projects in the potentially high-growth market.

The federal judge handling scores of lawsuits against Toyota Motor Corp over cars that raced out of control has set the first court hearing on the combined litigation for next month.

Mazda Motor Corp said on Thursday it would recall 89,822 Mazda3/Axela compact cars in Japan and China to fix a problem with the oil hose, and a further 191,503 sold elsewhere could be subject to repairs.

Renault and Daimler have begun examining each other's books after signing a partnership deal last week, and are discussing cooperation on electric vehicles, Renault's COO said on Thursday.

World number two truck maker Volvo said on Wednesday it expected its key European truck market to revive only gradually this year from its worst downturn in decades.