AUTO

U.S. lithium-ion battery maker Ener1 Inc (HEV.O) said on Thursday it would supply batteries to Ford Motor Co's (F.N) Swedish Volvo brand for a new electric car prototype.

Canadian factory sales rose in July at their fastest pace in 11 years, supporting expectations that the economy is growing again even though manufacturers are not expected to be the main driver of the recovery.

The global car market slump is set to spark a wave of mergers and bankruptcies among automotive suppliers being squeezed to the breaking point by weak demand and unrelenting pressure on prices, executives say.

Nissan Motor Co (7201.T) said on Thursday it expects its Chinese vehicle sales to climb 18 percent above its initial target of 570,000 units this year, helped by the government's tax incentives on smaller cars.

Italian scooter maker Piaggio's (PIA.MI) chairman and chief executive Roberto Colaninno called on Thursday for the government to continue with its incentives to support the vehicle industry in the economic downturn.

Magna's planned acquisition of Opel is proof that carmakers have lost the upper hand in the industry by outsourcing development work to suppliers and relying on them for technological knowhow, a top GM executive said.

Hyundai Motor Co (005380.KS) on Thursday launched a new model of its flagship mid-sized sedan the world's no. 5 automaker hopes will help it grab more of the higher end car market.

Toyota Motor Corp (7203.T) is preparing a $1 billion marketing campaign to boost U.S. sales in the fourth quarter, while also planning to expand its line of hybrid models under the Prius name, the Wall Street Journal reported on Thursday.

Geely Automotive (0175.HK), the Chinese carmaker whose parent is eyeing Ford's (F.N) Volvo unit, has approached Canadian auto parts maker Magna International about possibly taking a stake in Opel, a source said.

The global auto supply sector needs further consolidation, U.S. billionaire investor Wilbur Ross said, adding he was looking at potential acquisition targets, including at least one in Europe.

China's Geely Automobile has approached Magna International about joining the Canadian auto part maker's bid for Opel, a source familiar with the matter said, as China chases Western brands and the technology it needs to drive future growth.

The U.S. House of Representatives approved a $3 billion proposal on Wednesday to further spur research into advanced batteries and other technologies to power electric cars and other vehicles.

Fisker Automotive Inc, a builder of luxury plug-in hybrids, aims to make a profit in 2011 when its first vehicle, called the Karma, is expected to hit annual sales of 15,000 units, its chief executive said on Wednesday.

Chrysler Group said on Wednesday it would offer leases on its newest vehicles just over a year after sharply tighter credit markets and plunging vehicle values forced it to retreat from the market.

South Korean carmaker Hyundai Motor Co (005380.KS) plans to produce a new model in India priced as low as $5,000 and targeting emerging countries, Japanese business daily Nikkei reported.

U.S. motor giant Ford (F.N) will definitely sell its Swedish car brand Volvo, its finance chief told Swedish news agency TT on Tuesday.

From major automakers to niche manufacturers, the race is on to get green cars on the road in the coming years, but one question lingers: after many false starts, are drivers finally ready for them?

Executives at the Frankfurt Motor Show predicted a bumpy road to a car market recovery as they showcased their latest green technology, which they hope will transform the industry.

Fritz Henderson, the chief executive of General Motors GM.UL, expects that a deal to sell a majority in Opel to a Russian-backed consortium around Magna (MGa.TO) can be signed by the beginning of next month.

Luxury sports carmaker Ferrari thinks it could take 2-3 years for sales to return to levels seen in 2008, its chief executive, Amedeo Felisa said in an interview with Reuters TV.

Opel's chairman warned that turning around the unprofitable automaker in the next few years would not be an easy road as the sale of the European carmaker to Canada's Magna (MGa.TO) drew a political storm.

Honeywell's (HON.N) car parts business expects to post profits in 2009 and 2010, unlike many of its rivals, thanks to a growing demand for its efficiency-increasing turbo chargers, the unit's head told Reuters.

Swedish automaker Saab expects a positive outcome from the negotiations aimed at securing $600 million in loans from the European Investment Bank, its chief executive said on Tuesday.

Ford Motor Co (F.N) is on track to have cut structural costs by up to $15 billion since 2005, but has room to make further reductions, the automaker's chief financial officer said on Wednesday.

Ford Motor Co (F.N) will produce a seven-seat minivan-like vehicle built on a stretched compact car platform in North America beginning in late 2011, the automaker said on Tuesday.

Ford Motor Co (F.N) is asking European governments to keep incentives for consumers to scrap old cars because demand remains very weak and an abrupt suspension of the programs could lead to another sharp decline in sales, the head of Ford Europe said on Tuesday.

Greed -- not green -- drives sales of small, environmentally friendly cars, a top industry executive said on Tuesday.

Automakers would be required to gradually increase fuel efficiency under a landmark U.S. government proposal that raises the fleet-wide average to 35.5 miles per gallon by 2016 and regulates tailpipe emissions for the first time.

The European car industry could face a further shake-up with Asian companies pouncing on the chance to buy assets as China's Beijing Automotive Industry Holdings has done with Swedish car maker Saab.