GM agrees Chinese sale of Hummer

General Motors (GM) has agreed to sell its iconic Hummer brand to Chinese firm Sichuan Tengzhong Heavy Industrial Machinery for an undisclosed fee.

The two parties had been in talks about the sale for a number of months.

GM is in the process of selling and winding up a number of brands as it looks to reorganise after emerging from bankruptcy protection in July.

At the start of this month, the troubled carmaker announced it would be winding down its Saturn brand.

This was after the proposed sale to Penske Automotive Group collapsed.

GM has already announced that it is discontinuing the Pontiac brand, and is close to finalising the sale of its European brands Saab, Opel and Vauxhall. GM plans to reinvent itself by concentrating on fewer brands following bankruptcy protection, made necessary after car sales plummeted during the downturn.

Tata Motors to raise USD 600 mn via share sale in intl mkt

India's largest auto maker Tata Motors on Friday said it will raise up to USD 600 million (about Rs 2,783 crore) through issue of securities in the international market.

"The company has today launched an issuance of GDS (Global Depository Shares) and convertible notes for an aggregate amount up to USD 600 million, with an option to retain higher amount in the international market," Tata Motors said in a filing to the Bombay Stock Exchange.

Shares of Tata Motors plunged five per cent to a low of Rs 558.20 in the morning trade on the BSE.

Last month, Tata Motors sold 50 lakh shares in Tata Steel at an average price of Rs 473 a piece, aggregating to Rs 236.50 crore through open market transaction.

The auto maker had in August approached public for the second time in a year to raise about Rs 1,500 crore via fixed deposit schemes, offering up to 9.88 per cent annual interest for a three-year deposit.

In December 2008, it borrowed over Rs 2,000 crore from public for a period of up to three years as it was struggling to finance its USD 2.3-billion JLR buyout. nd

Tata Motors to drive in Nano to Africa in 2010

India's largest auto maker Tata Motors will introduce its small car Nano-considered the world's cheapest,in Nigeria within the next 18 months,ahead of its planned launch in Europe.

The car would be available for about NGN 360 for the base model, same as the price in the Indian markets. The car carries a price tag of Rs 1.23 lakh to Rs 1.72 lakh (ex-showroom) in the Indian capital for three variants.



"Tata Motors will make the Nano available in Nigeria in the next one year to one and a half years," a senior official of Tata Africa Nigeria, Sudeep Ray, said.



Tata Africa Nigeria is a subsidiary of Tata Africa, the Indian auto major's African venture.



Ray, however, declined to give details whether the 'cheapest' car of the world be assembled in Nigeria or it would be sold as a completely-built-unit.

GM ready to file for bankruptcy

Car giant General Motors is expected to file for bankruptcy protection later on Monday, marking the biggest failure of an industrial company in US history.

The stricken firm had until 1 June to present a viable revival plan in return for emergency government funding.

Reports say a majority of bondholders have now agreed to a deal giving them at least a 10% stake in what is likely to emerge as a much smaller company.

President Barack Obama is due to give full details at a news conference.

The BBC's Jonathan Beale, in Detroit, says Mr Obama is expected to announce $30bn (£18.5bn) in new funding for GM.

GM's sales have been hit hard by the financial crisis and the firm has received $20bn in state aid.

In return for more cash the federal government is reported to be receiving a stake of 60% in a new, leaner company due to be re-launched within 90 days.

Senior executives at General Motors have been making final preparations for completely restructuring what was once the world's largest car company, under judicial supervision.

A Chapter 11 bankruptcy filing by GM would rank as the third largest bankruptcy in US history following Lehman Brothers' collapse and the failure of telecoms giant WorldCom.

European deal

The restructuring is likely to drastically change General Motors, with some 20,000 workers thought likely to lose their jobs.Our correspondent says long-established subsidiaries Pontiac, Saturn and Hummer, as well as Saab, the remaining GM brand in Europe, are under threat as production plants are expected to close across the country.

GM's European arm is likely to be spared bankruptcy following a proposed deal by Canadian car parts maker Magna International to buy GM Europe's Vauxhall and Opel brands.

However, unions fear that jobs may be lost at Vauxhall plants in Luton and Ellesmere Port, which employ 5,500 people.

UK Business Secretary Lord Mandelson said he had received further assurance from GM Europe that Vauxhall production would remain in the UK.

Jobs may also go in Belgium, Poland and Spain.

GM, once the largest company in the world, has been losing market share since the early 1980s.It has been driven to bankruptcy because of high production costs and by the collapse in credit markets and consumer spending. It made losses of $30bn last year.

GM was also slow to move away from producing gas-guzzling SUVs when consumers were looking for more fuel-efficient vehicles.

Toyota sold more vehicles than GM in 2008, putting an end to the American company's 77-year reign as the world's biggest carmaker.

Toyota unveils new Prius hybrid

Toyota, the world's biggest carmaker, has revealed the latest revamp of its Prius petrol-electric hybrid in Japan.

The carmaker said it has had 80,000 advance orders in Japan. It is aiming for sales of 400,000 a year globally.

Incoming president Akio Toyoda, the grandson of the company's founder, said the future of cars rests on this model.

Prius is the world's best-selling hybrid, but Toyota's dominance of the sector has been challenged by rival Honda's cheaper Insight model.

The new Prius gets a combined 50 miles per gallon, compared with 46 mpg for the 2009 model, Toyota said.

It has not yet announced when the new version will be available outside Japan.

Worst loss

The carmaker is pinning its hopes on a new Prius boosting sales, after this month reporting its worst annual loss of 436.94bn yen ($4.4bn; £2.9bn) in the year to 31 March, due to the deepening recession and strong yen.

The Prius, launched in 1997, is now in its third generation.

By the end of April, Toyota said it had sold 1,028,000 of the cars worldwide, more than half of them in North America.

Toyota said its Japan prices for the Prius would start at just over 2m yen, or about £13,800 ($20,900), which is cheaper than the current Prius.

It also announced it will cut the price of the second-generation model on sale now, to 1.89m yen, the same price as Honda's Insight.

Suzuki boosted by sales in India

Suzuki Motors has avoided reporting a loss for the January to March quarter, helped by growth in India, but was downbeat about future sales.

The carmaker made a net profit of 5.8bn yen ($59m; £39m), during its fiscal fourth quarter, down 27% on a year ago.

Suzuki controls about half of the car market in India through its local unit Maruti Suzuki, which has seen sales rise for four months in a row.

The firm now expects global profits to fall 82% in its current financial year.

Suzuki predicts they will decline to 5bn yen due to the global slump in demand for new cars.

It also expects it will be affected by the continuing strong yen, which eats into its overseas earnings.

Indian boom

In India, Maruti's sales rose to 64,857 vehicles in April, helped by its bestselling Alto car and new models such as the A-Star and Swift DZire.

The rise in Indian sales contrasts with falling demand in the US, Europe and Japan, which Suzuki's rivals Toyota and Honda have been more exposed to.

On Friday Toyota said it forecast an annual loss of 550bn yen and expected to sell one million fewer cars this year.

Suzuki's revenues for the January to March period declined 27% to 670bn yen.

Chrysler approaches key deadline

Chrysler is just hours away from a deadline that could force it to file for bankruptcy protection.

Continuing efforts to restructure the business focus on persuading its main lenders to write off its debts, but reports say these talks have stalled.

Chrysler is also continuing discussions to form an alliance with Fiat, another key demand of the US government.

President Barack Obama said Chrysler could emerge stronger afterwards if a bankruptcy filing proved necessary.

"It would be a very quick type of bankruptcy and they could continue operating and emerge on the other side in a much stronger position," he said.

Government assistance

The US government has told the carmaker it would be given a further $6bn (£4bn) of vital state loans if the restructuring is completed by 30 April. So far Chrysler has managed to persuade its main union to back the restructuring and agree a cost-cutting deal.

The sticking point remains whether the carmaker can persuade its main lenders to accept $2bn in cash in exchange for writing off all of Chrysler's $6.9bn secured debt.

The company, the smallest of the US "Big Three" carmakers after General Motors (GM) and Ford, secured a $4bn loan from the US government in January, and has since gained $500m more.

GM has also received multi-billion government loans. While Ford has yet to require any money, the government has agreed to give it financial support, should it be needed.

All three firms have seen sales slump in their home market as the recession has intensified.

Ford loss smaller than expected

Carmaker Ford has reported better-than-expected results for the first quarter of 2009 and says it does not intend to take government aid.

While it still reported a loss for the quarter, of $1.4bn (£0.96bn), this was better than analysts had forecast.

The news sent Ford's shares up more than 16% in early trading.

Carmakers across the world have been struggling to cope with a massive slump in demand for cars as consumers hold back on making expensive purchases.

Two of Ford's biggest rivals, General Motors and Chrysler, have taken billions of dollars in US government aid and still face bankruptcy.

The latest results show that Ford has $21.3bn in cash and reiterate that, "based on current planning assumptions, it does not expect to seek a bridge loan from the US government".

Gloomy report hits Toyota shares

Toyota, the world's biggest car maker, is considering making cuts to its full time Japanese workforce for the first time since 1950, it has been reported.

Its comes as domestic production is set to fall below three million vehicles for the first time in three decades, said the Yomiuri newspaper in Japan.

Toyota's shares fell 3.9% to 3,720 yen ($37.87;£26) in Tokyo after the report.

The firm said it had yet to forecast its sales and production data for the current financial year.

Toyota has already cut production in the US, Canada, Mexico and the UK.

Strong yen

The firm has been introducing a range of measures - including pay cuts, voluntary redundancies, bonus cuts and shorter hours - to reduce costs.

It has already said it would post the first group-wide annual operating loss in its 70-year history, when its results are announced on 8 May.

Car companies are cutting back as a global slowdown reduces demand, and Toyota has been particularly hit by falling US sales.

Toyota expects to incur a net loss of 350bn yen ($3.6bn; £2.47bn) for the fiscal year ended March 2009.

The carmaker made a record 1.72 trillion yen profit in the previous financial year, but like other Japanese exporters it has been hit by a strong yen which has diluted its earnings overseas.

Toyota's global production for February were down 49.6% on a year earlier to 434,179 vehicles.

Meanwhile, domestic output for the month fell 56.4% on the year before to 207,743 vehicles.

UK moves towards car scrap scheme

The government is likely to introduce an incentive scheme for car owners to scrap old vehicles in exchange for new ones

The move would probably involve a payment of £2,000 to trade in cars that are a certain number of years old.

The controversial plans are designed to boost demand for new cars and help struggling carmakers who are suffering during the recession.

A similar scheme in Germany has seen demand for new cars rise dramatically.

France and Italy have also introduced so-called car scrappage schemes to boost their beleaguered car industries.

Details of the UK scheme are likely to be announced in the Chancellor's budget on 22 April
"A scrappage scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand," said Paul Everitt at the Society of Motor Manufacturers and Traders (SMMT).

GM chief Wagoner ousted by Obama

The chief executive of struggling US car company General Motors has been ordered to step down by US President Barack Obama.

Rick Wagoner will leave immediately, a government official confirmed.

Mr Obama is preparing to outline terms for offering more help to GM and fellow car giant Chrysler.

The two firms have already received $17.4bn (£14.4bn) in bail-outs. Chrysler has requested a further $5bn while GM says it needs $16.7bn more.

Plans rejected

Reports have suggested that a frustrated Mr Obama will reject GM and Chrysler's turnaround plans as unrealistic, raising the risk of the carmakers' bankruptcy.

The auto task force appointed by Mr Obama released two reports on Monday on the financial health of both carmakers, saying that Chrysler was "not viable" in its current form.

It demanded a merger with Italy's Fiat or another carmaker if Chrysler was to survive and said the Obama administration would only provide the company working capital for the next 30 days.

It also said that it would pledge to fund GM's operations for the next 60 days only, requiring the carmaker to come up with another plan detailing further restructuring.

"While Chrysler and GM are different companies with different paths forward, both have unsustainable liabilities and both need a fresh start," the task force said.

"Their best chance at success may well require utilising the bankruptcy code in a quick and surgical way."

Nano booking to start from 9th April

The booking of the Nano, the Rs one-lakh people's car from the Tata stable, will begin on 9th April and remain open till 23rd April; the delivery of the first lot of Nano cars will begin in early-July.

Announcing this ahead of its launch on Monday, Tata Group Chairman Ratan Tata told editors that the car, which would have the smallest footprint on the road, will be sold to the first one-lakh buyers at a price to be announced later.

The promise that has been made to sell the car at around Rs one-lakh would be kept despite the fact that commodity prices had shot up, Tata said, adding that the fall in commodity prices now may provide some cushion.

The delivery of the first lot of Nano cars will begin in early-July, he said, adding that applications for booking of the car would be available in 30,000 locations in 1,000 cities across India.

State Bank of India would be the qualified banker for collection of bookings in 850 cities, he said.

The car can be booked by just paying Rs 2,999 upfront while the rest can be secured by way of loan, he said.

There would be 15 preferred financiers for the booking whose names would be disclosed in three days.



The initial 50,000-60,000 Nano cars is to be supplied from its Pantnagar plant primarily set up to manufacture Ace trucks, Tata said, adding that the plant to manufacture the Nano at Sanand (Gujarat) is likely to go on-stream by end-this year or early next year.

The first one-lakh customers will be selected by draw of lots from the bookings, he said, adding that those not allotted would have the option to retain their bookings.

The customers who wait for more than one-year will be paid 8.5 percent interest and those beyond two-years will be paid 8.75 percent, Tata Motors' Managing Director, Ravi Kant, said.

No interest would be given to the first one-lakh allotments, Ravi Kant said, adding that the company expects to supply the cars to the first lot in a year's time.

Tata made it clear that Nano production at Pantnagar was, however, an interim solution after the company was forced to shift its production from Singur in West Bengal to Sanand.

"Personally, to say the least, I feel very excited that we were able to go to the last mile to implement Plan B and launch the vehicle in March this year instead of December (this year) or January (next year)," Tata said.



Tata said that all preferred financiers would roll-out their booking schemes within three days.

The rate of interest on the loan would be decided by the banks that provide the loans, Ravi Kant said, adding that several banks would be providing loans including public sector banks.

The Sanand plant would have a capacity of 2.50-lakh units per annum which could later be expanded to half-a-million, Tata said.

The model would meet BS II, III and IV norms which are equivalent to Euro II, III and IV norms, Tata said.

French aid prompts Renault move

French carmaker Renault is to shift some car production back to France after the guarantee of state aid.

Renault will take the production of its Clio Campus model to the Paris suburbs from Slovenia, creating 400 jobs, a French government minister said.

But the European Commission has demanded clarification about the plan, saying it may be protectionist.

France last month agreed to give Renault and Peugeot Citroen loans in return for keeping French plants open.

The plan to offer both Renault and Peugeot Citroen 3bn euros ($4bn; £2.8bn) sparked a row over protectionism after President Nicolas Sarkozy suggested that the money should not be used to rescue French-owned factories in Eastern Europe.

Luc Chatel, a junior minister for industry, announced Renault's decision in a local radio interview.

European concerns

EU Competition Commissioner Neelie Kroes told the BBC she was highly surprised and was seeking urgent clarifications. Ms Kroes said she received a pledge from Mr Chatel just a few weeks ago that the state bail-out for French car firms would not be linked to moving jobs to France.

If the aid proves to be conditional on this, Ms Kroes said it would be illegal under EU rules and should be paid back.

BBC correspondent, Oana Lungescu, said the clash comes at a pivotal point.

"This row couldn't have come at a worse moment for the EU, just as leaders meeting in Brussels are calling on the US and others to tackle the global crisis by avoiding all forms of protectionism," she said.

But Renault has defended its plans, saying its Slovenia factory was at full capacity and that the move to the Flins faciility in Paris would allow Renault to cope with additional orders.

In 2008, the French government said it would give consumers 1,000 euros if they traded in cars older than 10 years for a low-emission car.

'Increased production'

Renault spokeswoman Natalie Bourette said the move will not see job losses at Renault's Slovenian plant, which makes the Twingo and Clio models, but would rather be used as an opportunity to ramp up Slovenian production of the Twingo.

"Novo Mesto [the Slovenian plant] has no more available capacity, which is why we took the decision," she said.

Renault's claims were backed up by French President Nicolas Sarkozy.

"This is not about cutting jobs in Slovenia," he said.

"It doesn't take a single job from our Slovenian friends and it increases jobs for Flins," he added.

Meanwhile, Renault anticipates it will produce 8,000 Clio Campuses in Flins between June and October. Flins mostly produces the newer Clio III model.

Carmakers in Europe and beyond have been hit hard by the economic downturn.

Renault last month reported a steep fall in profits and abandoned its targets for 2009, blaming an economic crisis "of massive proportions". Sales in Europe were down more than 7%, it said.

Ford staff accept working changes

Workers at US carmaker Ford have voted to accept changes to their contracts and other benefits, the United Auto Workers union (UAW) says.

The changes include freezing wages, eliminating cost-of-living increases as well as some paid holidays and bonuses.

The deal, which is aimed at helping the firm remain competitive, also involves a new funding arrangement for a health care trust.

Ford's rivals GM and Chrysler will now face pressure to do similar deals.

Ford is the first US carmaker to come to an agreement with the UAW. US carmakers have struggled with a slump in demand as the economic crisis continues. Ford is also the only one of the so-called Detroit Three that has not asked the US government for any emergency loans.

Ford claims it currently has enough money to survive the downturn but says the deal will help it address a fall of income as car sales collapse.

The deal with the UAW is one of several steps Ford has taken to cut costs as part of a turnaround plan that the company initiated four-years-ago.

Sacrifices

The union said 59% of production workers and 58% of skilled-trades workers voted for the agreement.

"We are facing an unprecedented loss of sales and revenue at Ford," said UAW Vice-President Bob King.

"The voting results show that our members are prepared to make painful sacrifices in order to be part of the solution to the problems facing Ford and the US auto industry."

The deal will also save Ford billions of dollars in health care costs. The company will now pay up to half of its obligation to a trust fund for retired workers in stock rather than cash.

The announcement came as members of the Obama administration task force were touring General Motors and Chrysler facilities in the Detroit area.

GM and Chrysler have already received $17.4bn (£12.6bn) between them in federal support, and have asked for a further $21.6bn.

Similar agreements with the UAW are needed as a requirement of their bailout packages.

US car giants seek $21bn funding

Troubled US carmakers GM and Chrysler have asked the US government for another $21.6bn (£15.2bn) in support, on top of the $17.4bn already received.

The auto giants also plan to axe 47,000 and 3,000 jobs respectively, as well as shedding a number of car models.

The moves form part of their drastic restructuring plans submitted to the US Treasury Department on Tuesday night.

It came as the United Auto Workers (UAW) union reached agreement with GM, Chrysler and Ford on contract changes.

Plant closures

The UAW is one of a number of stakeholders whose agreement is needed before the proposed plans can be pushed through.

General Motors said it would try to borrow up to $16.6bn more from the government, on top of the $13.4bn it has already received.

Its plan includes cutting 47,000 jobs and closing five more US factories.

GM says that it could be in profit within two years and fully repay its loans by 2017.

'Lot of work'

In December GM had said it would cut the number of plants from 47 in 2008 to 38 by 2012, but has now added another five factories facing the axe, which would leave it with 33 facilities.

The carmaker's brands would also be reduced from eight to four - Chevrolet, Buick, Cadillac and GMC.

GM chief executive Rick Wagoner said the company's plan was "comprehensive, responsive, achievable and flexible".

"We have a lot of work in front of us, but I am confident it will result in a profitable General Motors," he added.

Models cut

The plan came after Chrysler, which was given a $4bn loan by the US government at the end of 2008, revealed its own survival plan.

Chrysler has asked for another $5bn funding, and plans to cut 3,000 posts.

The firm will also cut three car models in 2009 - the Chrysler Aspen and PT Cruiser, and the Dodge Durango.

Unveiling its proposals, Chrysler said it now expects the current downturn in the US car market to last another three years.

'Said right things'

The US's third biggest carmaker said its radical surgery had the support of the United Auto Workers (UAW) union, dealers, and suppliers.

The UAW says it has also reached tentative agreement with Ford and General Motors to help cut those firms' labour costs.

Meanwhile, Chrysler also said it planned to cut outstanding debt by $5bn and reduce fixed costs by $700m in 2009.

Analyst Lincoln Merrihew, of TNS Automotive Consulting, said: "I'm curious to see how the government responds to this plan, but Chrysler has said all the right things."

GM confirms 10,000 jobs are to go

US carmaker General Motors has confirmed it is cutting 10,000 jobs from its workforce by the end of 2009.

GM said it would reduce its global salaried staff to about 63,000 from its current level of 73,000.

The company said it was forced to act by a "severe drop" in vehicle sales worldwide and by the need to restructure "for long-term viability".

About 3,400 cuts will be made in the US. These had already been outlined in a plan put forward to the government.

Restructuring plan

The cost-cutting was part of an initial restructuring plan GM submitted to Congress on 2 December 2008 as part of a request for aid.

The chief executives of Ford and GM also offered to work for $1 a year to persuade Congress to approve the emergency aid.

At the end of last year, the US government gave GM $10.4bn in loans and Chrysler $4bn. A further $4bn was to be provided to both firms at a later date.

GM's car loan arm GMAC also received a $5bn rescue package from the US government.

Under the terms of the deal, the US Treasury agreed to buy shares in GMAC.

Pay cuts

On Monday, GM also announced "a temporary pay reduction for a majority of US salaried employees" from 1 May to the end of the year, when it will be reviewed.

Executives' pay will be cut by 10%, while "many others" will see reductions of 3% to 7%, the carmaker said.

"Other countries are currently reviewing compensation and benefits for salaried employees," GM said.

Airbus takes top planemaking spot

European planemaker Airbus took top spot in global jet plane deliveries and orders during 2008.

Airbus saw a 7% rise in deliveries to a record 483 planes. US rival Boeing - hit by a machinists' strike - saw its deliveries fall by 15% to 375 planes.

It also outsold Boeing, with orders for 777 jets, down 42% from the previous year. Last week, Boeing said it sold 662 aircraft in 2008, down 53% on 2007.

Airbus is restructuring to cope with currency volatility and other issues.

It said its Power8 cost-cutting programme had saved 1.3bn euros ($1.7bn; £1.2bn).

'Challenging 2009'

The pan-European firm sold planes worth $100bn (£68bn) in 2008, giving it a market share of 54%.

And it said it had a backlog of 3,715 jets, which it is estimated it would take six years to clear, although this could be reduced to four years with cancellations.

Last year, Airbus sold a net total of 472 single-aisle aircraft and 310 wide-body models, including nine A380 superjumbos.

Boeing's 2008 production was hit by a 58-day machinists' strike.

Meanwhile, Airbus has cut its A380 delivery forecast for 2009 to 18 planes. In 2008 it delivered 12 of the aircraft.

"We all know that 2009 will be a very challenging year for the aeronautics industry," said Airbus chief Tom Enders.

"At Airbus we are well prepared and confident."

BMW sales down but Mini sales up

BMW sales fell 4.3% in 2008 to 1.4 million, as falling demand for BMW-branded vehicles offset improved sales of its Mini and Rolls-Royce brands.

BMW said December was "marked by consumer reticence", with group sales falling by 26.4%, compared with the same month of 2007 of 112,423 vehicles.

Sales of the Rolls-Royce marque rose to 1,212 in 2008 from 1,010 in 2007.

The Mini brand also had a year of growth, with 2008 sales of 232,425, up 4.3% from the previous year.

"Overall we performed comparatively well with a 4.3% decrease," said marketing director Ian Robertson at BMW.

On Thursday, its rival Daimler, which makes Mercedes-Benz cars, reported a fall of sales of 2.8% in 2008 to 1.26 million.

The French carmaker Renault said on Friday that its sales had fallen 4.2% in 2008 but added that sales for the whole industry had been down by 4.8%.

US carmakers and manufacturers that make a high proportion of their sales in the US have been hit particularly hard by the downturn.

Tata 'to inject cash into Jaguar'

Tata Motors, the owner of Jaguar Land Rover, is to inject "tens of millions" of pounds into the British carmaker, according to the Financial Times.

A spokesman for Tata Motors did not deny the report.

A cash injection by the Indian owner would give the UK government more time to decide whether to use public money to bail-out the company.

Business Secretary Lord Mandelson had cast doubt on a bail-out, saying the state was a "lender of last resort".

Debasis Ray, head of corporate communications for Tata, did not not deny the report but would not say how much money would be injected.

"It is our company and we are running a business," he said.

"Discussions with the government, however, are confidential and cannot be revealed. We have to run the company and are doing so to the best of our abilities."

State aid

The carmaker has asked the government for financial support and its case has been backed by unions which say the industry needs help.

Labour peer Lord Bhattacharyya had suggested ministers were discussing a £667m loan package for Jaguar.

But Lord Mandelson said that Tata group must "look to their own resources."

Jaguar Land Rover has been hit hard by a dramatic slump in sales that has affected carmakers across the world.

In the US, the government has agreed to a $17.4bn (£11.6bn; 12.4bn euros) bail-out package for its auto industry.

In the UK, the Confederation of British Industry has said urgent government loans are needed to preserve 800,000 UK jobs in the carmaking industry. The Unite union says tens of thousands of skilled jobs are "hanging by a thread".

Daimler cuts Mercedes-Benz output

Daimler is reducing the working week at its largest Mercedes-Benz factory, as it becomes the latest carmaker to trim output in the face of falling sales.

The firm's Sindelfingen factory near Stuttgart in Germany will adopt a four-day working week from 12 January until at least 31 March, said the company.

It added that there may also be some three-day weeks.

German rival BMW has already announced a longer Christmas break at its main production facility in Munich.

'Serious slump'

Daimler added that it was also considering shortening hours at its other plants in Berlin, Bremen and Dusseldorf.

Its announcement comes after the German Association of the Automotive Industry said last week that new car sales in 2009 were expected to be the worst since the country's reunification in 1990.

Fellow German carmakers Porsche and Volkswagen (VW) have also warned of a tough sales environment.

Porsche recently said it was delaying its takeover of VW due to signs of a "serious slump" in global demand.

Meanwhile, VW said the current market situation was "very challenging indeed".

Across Europe, Toyota, Ford and Honda have all already announced a cut in working days.