AUTO

French carmaker PSA Peugeot Citroen and Japan's Mitsubishi Motors Corp denied a report on Thursday that they are working together to develop and produce parts for plug-in hybrid vehicles.

The program, which could be extended by lawmakers, is the latest of a variety of enticements offered to car buyers in the downturn.

Yang Rong, a Chinese automobile tycoon who fled the country after being accused of economic crimes, is preparing to launch an ambitious plan to make clean-tech cars in the United States, said a source.

The number of U.S. workers filing new claims for jobless benefits fell sharply last week but the data was distorted by an unusual pattern of layoffs in the automotive industry, which amplified the decline

Hyundai Motor Co, South Korea's top carmaker, on Wednesday launched its first hybrid car in the domestic market to satisfy a growing appetite for fuel-saving vehicles and to improve the image of the company's technology.

On the main board, foreign investors sold a net 197 billion won ($154.4 million) worth of shares, ending their buying spree in the past nine sessions.

Federal-Mogul Corp (FDML.O) is readying a renewed bid for the assets of Delphi Corp (DPHIQ.PK) after breaking off talks with the bankrupt auto parts maker in late May, three people with knowledge of the situation said on Tuesday.

Car sales in India rose an annual 7.8 percent in June, climbing for a fifth straight month and reinforcing the country was one of the few markets where demand has been picking up.

China is at the start of another boom in car sales that is being propelled by rising incomes in third-tier cities and could continue for a few years, JP Morgan said on Wednesday.

PARIS - French carmaker PSA Peugeot Citroen said sales of vehicles and knocked-down kits fell 14 percent in the first six months of the year.

U.S. auto parts maker Lear Corp (LEAR.PK) filed for Chapter 11 bankruptcy protection on Tuesday, a day after setting out plans to restructure its $3.6 billion debt burden under a proposed deal with creditors.

The public has dismissed Beijing Automobile Industry Corp.'s last-minute offer for General Motors' Opel business in Europe, but in fact this is not such a daft proposal.

Toyota Motor Corp's Prius hybrid was Japan's best-selling car in June while Honda Motor Co's rival Insight ranked fourth, helping the two hybrid leaders dominate the list of top-selling models.

Chinese President Hu Jintao's visit to Italy generated over $2 billion worth of deals between the two countries on Monday, including a Fiat SpA (FIA.MI) joint venture to produce cars and engines in China.

General Motors Corp has been given about a third of the bankruptcy financing promised by the U.S. Treasury and will get the remaining $20 billion over the remainder of the year, a senior U.S. official said on Monday.

Automobile output in Brazil climbed in June for the second straight month as manufacturers stepped up production to meet growing consumer demand, the national automakers' association Anfavea said on Monday.

Italian auto maker Fiat (FIA.MI) has agreed a 50-50 joint venture deal with China's Guangzhou Automobile Industry Group to produce car engines in China.

A federal bankruptcy judge will decide the immediate fate of General Motors Corp's effort to quickly sell its best assets to a group funded by the U.S. government, after a three-day court hearing concluded on Thursday.

Budding signs of stability in the ailing U.S. automotive sector will kick-start a quicker demand recovery for aluminum, even as the industrial metal's supply base in U.S. warehouses will continue to swell from the industry's severe downturn.

The New York Times leads its

Picking through Toyota's suffering U.S. sales performance in June, observers find many well known brands which have suffered at the hands of a down economy but nuggets of positivity in the carmaker's lineup will reveal gains for its Lexus RX sports utility vehicle, Prius hybrid and RAV4, a small SUV.

Major automakers posted better U.S. auto sales for June than in recent months on Wednesday, led by Ford Motor Co as results pointed to signs of some stabilizing in the hard-hit industry.

General Motors said on Wednesday its China vehicles sales rose 38 percent in the first half of 2009 from a year earlier as China's stimulus policies boosted automobile demand.

Major automakers are expected to report the highest sales rate of 2009 when they post results for June, as deep discounts limit industry-wide results to a 30-percent decline.

The fifth round under the Federal Reserve's TALF program grew to $8.1 billion on Tuesday and is largely being shaped by auto ABS issuers as two new deals join the queue of securities offered ahead of the July 7's subscription deadline.

The cash-for-clunkers program, which encourages consumers to trade-in gas guzzlers for more fuel efficient cars, will likely provide a slight boost to vehicle sales in the third quarter.

Ford Motor Co expects its U.S. sales for June will decline by less than 20 percent, giving it a higher share of the largest auto market amid early signs that demand has begun to stabilize, an executive said on Monday.

The head of Japan's Suzuki Motor Corp (7269.T) said he has had no contact with Volkswagen AG (VOWG.DE), shooting down a report last week that the German auto giant was considering a 10 percent stake in Suzuki, a Japanese newspaper said.

The decline of U.S. automakers has for years affected those who live in Pontiac. Now the city's dead look set to feel the pain as well.