Autoblog UK

It looks as though open-top specialist Karmann has been thrown a lifeline. Volkswagen have offered the insolvent company a rescue package in the form of a takeover. Apparently, talks are well advanced between the Wolfsburg giant and the north German niche manufacturer. The sticking point appears to be the price, with Karmann claiming to be worth 65 million euros. It is also not quite clear which parts of the company VW intend to swallow up. Karmann currently has a 1,600-strong workforce, 800 of whom are facing immediate redundancy.

The Osnabrück-based carmaker boasts a long tradition stretching back to the year 1901. The most famous model ever produced was the Karmann Ghia in the 1950s, a coupé version of the VW Beetle. Production of this vehicle, which achieved cult status around the globe, came to an end in the 1970s. Since 1949, Karmann have been manufacturing complete cars in small production runs, totalling 3.3 million units over the six decades.

Indian manufacturer Tata Motors Ltd, who bought the legendary British marques Jaguar and Land Rover for 2.4 billion US dollars in 2008, have just announced that they will shut at least one of their factories in England by 2014. The manufacturing plant in Castle Bromwich, where 2,100 workers currently build Jaguars, and the neighbouring former Rover factory in Solihull near Birmingham, where 5,000 are employed in the production of the Land Rover, are under threat. Tata spokesman Paul Chadderton disclosed that 800 new jobs would be created at the Halewood plant near Liverpool to produce the new Range Rover LRX.

The three factories are running at only 60% capacity due to a decline in orders. Since September 2008, around 2,500 employees have already lost their jobs. The final decision as to which factory will close will be taken early next year.

Toyota have been suffering their worst slowdown in sales since the company was founded in 1937. But in August, trade was up by 9% compared to the previous year. That same month, German competitor Volkswagen increased their deliveries to customers around the globe by 9.5% compared to a year ago. As reported last Saturday in the 'Tokyo Shimbun', Toyota have increased production worldwide by 8% to 6.45 million vehicles in the financial year 2009/2010. This has been made possible through the effects of government subsidies and tax breaks for new fuel-efficient vehicles.

The sports car manufacturer Porsche is finally to become part of the Volkswagen group. Volkswagen AG and Porsche Automobil Holding have now reached a basic agreement for the creation of an integrated automotive concern that includes Porsche and comes under the overall management of Volkswagen.

Up to the end of 2009, Volkswagen will have an initial 42% shareholding in Porsche AG; furthermore, the distribution side of the business, Porsche Holding Salzburg, will be acquired by VW; and in the year 2011, Porsche SE will merge with Volkswagen. Despite these changes, Porsche will remain a separate operation with HQ in Zuffenhausen. The new group supremo is to be VW Chairman Martin Winterkorn, who also becomes boss of Porsche Holding. Precise details of how the plan is to be implemented will be worked out over the next few weeks and months.

Saab have a genuine SUV (the 9-4X BioPower concept) in the pipeline. But whether it will ever make it on to the market is anyone's guess. For bankrupt Saab could well become the next victim of the collapse of General Motors. Formerly a small but upmarket brand with a niche appeal, it was a bad day for Saab when it was taken over by GM. Gone were the innovative ideas of yesteryear. Today, what we have are bog standard series production cars with no upmarket pretensions which still expect to compete in the premium segment of the market. This quite clearly doesn't work. Whether the luxury sports car manufacturer Koenigsegg can really save Saab remains to be seen. It would, however, be a shame if this marque, steeped in tradition, really does go down the pan. But at the same time, that is the market economy. Only the strong survive.

The scrappage allowance has crossed the Atlantic. With a very narrow majority, the US Senate in Washington has approved an incentive scheme for owners of old bangers in an effort to support the ailing automotive industry. The campaign has been nicknamed 'Cash for Clunkers'.

The scheme that has got the go-ahead in the States is less generous than its European counterparts, as it applies only to purchases of new vehicles made between 1st July and 1st November 2009. The maximum value that can be claimed is 4,500 US dollars, the precise amount being determined by the eco-friendliness of the replacement. The most important condition attached to the discount voucher is that the fuel consumption of the newly acquired vehicle must not exceed 22mpg; also, it has to be more economical to run than its predecessor.

Jon Stewart, star of American TV's 'The Daily Show', had a typically ironic view on the insolvency of General Motors: GM has assets of 82.3 billion US dollars, and debts in excess of 172.8 billion US dollars. Taken at the bottom line, that makes a deficit of at least 60 billion US dollars. US President Obama is facing serious risks; and he is now very much involved, since the state acquired 60% of GM. So the American taxpayer is expecting a speedy return to good health. Obama said in his speech that 60% of General Motors now belongs to the American people.

In his show, Jon Stewart expressed his gratitude as a US citizen for his share of 60 billion US dollars of 'debt'. 20 billions of taxpayers' money had already been pumped in and nobody could say where it had ended up. Several millions had been splashed out on advertising. Stewart sees only one solution: burn down GM, and pocket the insurance money. However, GM's insurers are AIG - and last year AIG made a loss of 99.3 billion US dollars. So that won't work either, was Jon Stewart's dry conclusion.

In the last few months, over 6,500 Kia Soul vehicles have been sold in Europe, which was more than Kia Motors had forecast. The launch of the Kia Soul in Australia and the USA was equally successful, with 3,200 new sales in April alone. In contrast to the overall trend in the market, Kia Motors increased its April sales figures in eight European countries. The biggest rises were in Slovakia (91%), Austria (51%) and Germany, where sales were up by 42%.

The ten-millionth vehicle has just rolled off the assembly lines at the Fiat works in Brazil – it was a Palio. During the month of May, Fiat Automoveis sold 60,628 units and claimed a market share of 25.5 percent. The balance sheet for the first five months of the current year also shows the automotive giant dominating the Brazilian market, its 24.6% share putting it in pole position ahead of Volkswagen and General Motors.

First opened in 1976, the Fiat factory in the city of Betim, approximately 200 miles north of Rio de Janeiro, is now the biggest car production facility in the world, boasting an annual capacity of 713,000 units. Fiat currently build 15 different models here, both cars and HGVs, mainly for the South American market. Around 3,000 new vehicles leave the factory each day.