VOLKSWAGEN

Performance sports car maker Porsche AG's sterling reputation for quality took a severe dent on Tuesday, when it recalled every Panamera it built only months after the model line was launched to much fanfare.

Canadian auto parts maker Magna International said on Monday it has won contracts to supply a variety of components and systems for Volkswagen Group of America's new mid-sized sedan, expected to hit the U.S. market in 2011.

German carmaker Volkswagen will build two new plants in China as part of a 1.6 billion euro ($2.15 billion) expansion plan to capture growth in the world's most dynamic auto market.

Chinese consumer reaction to electric cars made by Volkswagen AG will determine the fate of the German group's plans to lead the industry in battery-powered vehicles, the group's CEO said on Friday.

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.

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.

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.

Sales of passenger cars grew by almost two-thirds in China last month as buoyant consumer sentiment bolstered spending on big-ticket items in the world's third-largest economy.

Volkswagen's premium carmaker Audi expects to post further year-on-year growth in the second quarter after recording a 25.9 percent jump in first-quarter vehicle sales to a record high.

The representatives of two major Swedish funds resigned from Scania's nomination committee on Friday, citing a disagreement with the truck maker's main owner, Volkswagen.

Europe's vanmakers have gone a long way toward meeting proposals to curb climate-warming emissions, but as debate on the 2016 targets kicks off big auto is seen digging its heels in over the last mile.

German luxury carmaker BMW sees a definite upturn in almost all car markets after its automobile and motorcycle sales increased 14 percent in February compared with the same month last year.

Hybrid and electric cars are the stars of motor shows, but the expensive technologies could take a decade to really hit European roads as automakers improve petrol and diesel cars to meet short-term emissions targets.

Carmakers will be keen to show off new green technologies at the Geneva Auto Show, opening this week, as economic uncertainties and waning scrapping schemes make forecasting this year's sales trends difficult.

Volkswagen's Czech unit Skoda Auto has plans for a new model, its union's weekly newsletter reported, although details of its pricing and production schedule are still not certain.

German engineering sector union IG Metall has agreed with Volkswagen to extend job guarantees at the carmaker's western German plants by three years until 2014, the union said on Tuesday.

Passenger car sales rose 12.9 percent in January in EU member states, as the ongoing effects of scrapping incentive schemes boosted demand.

Foreign automakers enjoying success in China may be gearing up to take on local players in the high-volume but competitive low-end market, following General Motors' recent roll-out of a model priced as low $8,300.

Volkswagen is recalling close to 200,000 units of its Novo Gol and Novo Voyage models built in Brazil for the local market, VW's third-largest, due to insufficient grease in rear wheel bearings in some cases.

Market talk that Volkswagen could announce at an investor conference on Wednesday that it planned to take over MAN SE soon pushed shares in the German truckmaker up more than 4 percent.

Volkswagen revised its previous assumptions for global car market sales lower by 67 million vehicles for the period through 2018, Automobilwoche reported, citing a letter presented to VW's top management.