One of France's most iconic cars, the Citroen 2CV, is celebrating its 60th birthday this October. The BBC's Emma Jane Kirby in Paris has been looking at how this vehicle revolutionised the French motor industry.



Some may dismiss it as nothing more than an old tin can. The BBC Top Gear programme's Jeremy Clarkson wrote it off as a "weedy, useless little engine".
But enthusiasts like Xavier Audran who owns a dozen of them, worships the 2CV "not just as a car, but as a way of life".
It may be 18 years since the 2CV went out of production, but Mr Audran is adamant that its charm has never gone out of fashion.
His maroon 2CV is illegally parked in the middle of the pavement by the Paris canal but he laughs when I suggest he is asking for a fine.
"Usually, 2CV owners don't get tickets. Policeman just smile. Almost everybody in France had a 2CV at some time in their youth - so they're nostalgic and not angry with us," Mr Audran says.



'Umbrella on wheels'
In 1948, when the Deux Chevaux first appeared at the Paris car show, it was hard for motoring enthusiasts to get excited about this odd-looking little car.
It had one headlight, no starter motor and even its own designer, Pierre Jules Boulanger, admitted it looked like an umbrella on wheels.
It was originally destined as a cheap country round-around for farmers, designed to be able to carry four people (or sheep) and a basket of eggs across a ploughed field without breaking any shells... or indeed bones.
But its cheapness meant that the low-income segment of the French population could afford one, and soon there was a waiting list of five years.
Economical on fuel, cheap to repair with an almost indestructible air-cooled engine and with a comically soft suspension that made it springy enough to bump along off road, the 2CV was the perfect family holiday car.
Its removable back seats handily doubled up as a picnic bench, saving generations of skirts and trousers from unsightly grass stains.



'Symbol of France'
These days it is fairly rare to see this most quintessentially French vehicle trundling along the roads. But in Paris, a fleet of 2CVs offers sightseeing trips to tourists.

Florent Dargnies, who runs such tours, says the Deux Chevaux is the epitome of Gallic charm.
"The 2CV is a symbol of France, I mean like the Eiffel Tower or the French baguette," Mr Dargnies says.
"When you are in a 2CV you escape. It is an experience in itself. Its an adventure, and you feel like you're in a cosy cocoon."



'Indestructible'
France is celebrating the 60th anniversary of the 2CV with a special exhibition of the car at the Cite des Sciences et de L'industrie in Paris.
The fascinating display takes the visitor through the birth of the Deux Chevaux, with one of the five remaining examples of an abandoned early production run from 1939, and follows the car through its numerous renaissances and modifications.
Wistful ex-owners stroke the exhibits fondly, reminiscing about their 2CV salad days.
Only five million 2CV cars were ever sold, but no-one knows how many people were 2CV owners - the little car was so tough that it rarely needed repairs and was the perfect hand-me-down vehicle.
Perhaps, its indestructibility was its downfall - a car which never needed spare parts was not going to make big profits for manufacturers. Its lack of vroom also became a bit of problem in the modern age of speed.
The standing 2CV joke was that it managed to do 0 to 60km/h (37mph) in one day.



I remember driving with my French friend Francoise in our university holidays in Devon - her 2CV happily took us to the beach but - at the first sign of a hill - I had to get out and help push her up.
The Deux Chevaux is often unfairly accused, however, of earning its name because it only had a two-horse power capacity - in fact it had an eight-chevaux capacity and its name refers to the very low tax category into which it fell.
Mr Audran will not hear a word said against his favourite French car.
He has been all over Europe in his various 2CVs, and this summer is off to attend a 2CV convention in Italy.
What other car, he asks me, can do 40 miles (64km) to the gallon, has a soft top and never suffers from electrical faults?
His friend, he boasts, has even carried his donkey in his 2CV with its head sticking out of the roof.
Jeremy Clarkson may laugh but the truth is that the humble Deux Chevaux - designed to replace the horse and cart for farmers - revolutionised the French motor industry.

German Cars Lead in CO2 Reductions

European carmakers trimmed average carbon emissions 1.7% last year, but the Germans did far better, with BMW in the lead

by Leigh Phillips

Cars sold in Europe last year reduced carbon emissions slightly, with manufacturers managing to achieve an average improvement of 1.7 percent, according to a new report.

Green campaign group Transport & Environment, the authors of the report released on Tuesday (26 August) tracking the progress of Europe's major car manufacturers have made in reducing CO2 emissions, welcomed the reduction.

The group celebrated the fact that the companies had beaten their all-time nadir last year of an improvement in fuel consumption of just 0.7 percent, but warned that such figures showed the firms are still not on track to meet climate targets.

"The lack of progress was, again, explained to a large extent by the lack of progress in cutting weight. In 2007, cars again became 10 kg heavier...Heavier cars use more fuel," reads the study.

In a turnaround of its fortunes however, BMW showed a marked improvement in the fuel consumption of its fleet, with the average new car sold by the German firm in 2007 consuming some 7.3 percent less fuel than in 2006.

Jos Dings, director of the environmental group said: "With the threat of legislation looming, BMW has shown that even premium carmakers can seriously reduce CO2."

"But the slow response of most carmakers shows that the EU needs to keep up the pressure with challenging, long-term CO2 targets."

The group credits BMW's 'Efficient Dynamics' programme with engineering the reductions. The programme introduced a series of fuel-saving measures across the entire range of BMW's models.

GERMAN CARS GAINING
Indeed, the report shows that German carmakers now appear to be gaining on their French and Italian rivals, which traditionally produce much lighter and efficient than German firms.

The change is particularly notable, argues the campaign group as in 2006, emissions from German cars increased on average.

Hyundai and Daimler came in second and third in the rankings of emissions reductions, dropping an average of 3.9 percent and 3.5 percent, respectively.

However, the latter's reduction is deceptive, as more than half of Daimler's improvement was a product of the company selling off Chrysler, its heavier, fuel-intensive American wing, instead of coming from enhanced fuel efficiency of its vehicles.

The report criticises both French car makers, Renault and Peugeot, for achieving reductions of less than 1 percent.

American firms Ford and General Motors performed similarly to their French counterparts, while Japanese car companies performed worst of all.

Italy's Fiat came fifth overall, having achieved a reduction of 2 percent.

"It is striking that three of the bottom four carmakers are Japanese: Suzuki, Mazda and Nissan," says the report. "All three did not close the gap sufficiently in 2007 and will have to speed up their efforts."

LEGAL PROPOSAL
In December 2007 the European Commission published a legal proposal to regulate the fuel efficiency of vehicles, with new cars being restricted from emitting, on average, more than 130g of CO2/km by 2012.

The legal proposal has to be approved by the European Parliament and member state governments before becoming law, a process that is expected to end in early 2009.

The European Parliament's Environment Committee is scheduled to vote on the car CO2 law on 8 September.

Transport & Environment, for its part, wants to see a target of 120g/km by 2012, in line with an official EU target first proposed in 1994 by the then German environment minister, Angela Merkel.

The 14-year-old target was supposed to be achieved by 2005 and has been postponed three times—in 1996, 1997 and 2007.

Peugeot's 888 Concept Car
The all-electric two-seater is designed to shorten its wheelbase for city driving by an ingenious hydraulic tilting system



The Peugeot 888 Concept was conceived as the personal vehicle for the future Metropolis by Oskar Johansen (Norway). The all-electric two seater is designed to shorten its wheelbase for city driving by an ingenious hydraulic tilting system. This raises the driver in the cockpit for a better view, increases manouverability in narrow places making the car able to take a sharp u-turn, and enable the car to fit into smaller parking spaces. The 888 is one of the 29 finalists in the Fifth bi-annual Peugeot Design Competition which is now open for voting via the internet. Previous winners include such remarkable concepts as the Moonster (2001), 4002 (2003), Moovie (2005) and the Flux (2007). The competition is truly one of the highlights of the Motor Show season every second year because the winning project actually gets built by the team at Peugeot. Check out the full 29 finalists here.
http://www.peugeot.com/en/design/design-...lists.aspx

When leaving the city, the 888 flattens out for a more aerodynamic profile, a longer wheelbase, a lower driving position and a lower centre of gravity, all designed for better stability at high speed.

The 888 is one of the 29 finalists in the Fifth bi-annual Peugeot Design Competition. The competition is truly one of the highlights of the Motor Show season every second year because the winning project actually gets built by the team at Peugeot.



The competition has now been narrowed from 2500 projects entered from 95 countries to 29 finalists and Oskar Johansen's 888 was just one of a number of fantastic projects which are now up for voting.

Between now and September 16, those who vote in the contest to choose the final ten contestants will become eligible to win one of 20 XBOX360 consoles. On September 16, the final ten will be announced on on October 2, the winner will be announced at the Paris Motor Show.

The ensuing period between October 2008 and March 2009 will see the vehicle actually built and the final vehicle will be presented at the Shanghai Motor Show in April 2009.

A Mercedes Hybrid at Last
In June 2009 the automaker will launch in Europe a 30-mpg hybrid version of its luxury S-Class sedan


by Jack Ewing

German automakers pride themselves on being at the leading edge of new technology, so it has been a bit of an embarrassment that—a decade after Toyota ™ launched the Prius—none of them has a hybrid electric model on the market. But, with fuel economy and environmental impact suddenly a key concern for well-heeled buyers, Daimler's (DAI) Mercedes unit is finally poised to get into the hybrid game.



In June 2009 the company will begin European sales of a hybrid version of its luxury S-Class that, its engineers say, will use 7.9 liters of gasoline per 100 km (or get 29.8 miles per gallon). Launches in the U.S. and China will follow in September, Mercedes said on Sept. 11.

The carmaker hasn't yet established a price for the hybrid land yacht, but Mercedes Sales and Marketing Director Klaus Maier said the premium will be less than €10,000, or $14,000. The S-Class starts at about $88,000 in the U.S., though the top-of-the-line V12 costs a staggering $145,000.



WHY SUCH A BIG CAR
Cynics might say that people concerned about global warming and the massive transfer of wealth to oil-producing nations should simply buy a smaller car. But Mercedes executives don't think their customer base has quite reached that stage of enlightenment. "Not everyone can drive a Smart on vacation," Maier says. "We need solutions for big cars."



Why did it take so long for Mercedes to get into the hybrid market? One reason is that Mercedes, as well as BMW (BMWG.DE) and Volkswagen (VOWG.DE), have concentrated on optimizing diesel engines. BMW's diesel Mini and 1 Series rival the Prius for gas mileage and carbon dioxide emissions. Daimler says its BlueTec line of diesel SUVs, launched in the U.S. over the summer, account for 20% of Mercedes SUV sales in the country, a substantial percentage considering that diesel passenger cars make up only 4% of the total market.

From an engineering point of view, diesel is the better technology because it offers comparable gas mileage to a hybrid—or even superior mileage in highway driving—with less weight and expense. But the success of Toyota's luxury Lexus hybrid models showed that gasoline-oriented U.S. buyers want hybrids. "Mercedes said: 'If you want to save the planet, buy a diesel,'" says Christoph Stürmer, Frankfurt-based auto analyst at Global Insight. "They were right in their own way but proven wrong by the market."



The S-Class is not a so-called full hybrid—it can't run solely on battery power. Rather, the electric motor supplements the six-cylinder, 279-horsepower gasoline engine, improving fuel economy by providing a boost while accelerating. The car also recovers energy when braking, feeding it back into the battery. However, Mercedes has included some innovations that it hopes will set the S-Class hybrid apart from Japanese competitors.

BETTER BATTERY
The main innovation is the lithium-ion battery. Developed along with German components supplier Continental (CONG.DE), the battery weighs less and takes up less space than batteries used by competing hybrids. Slightly larger than a conventional auto battery, it fits under the hood and does not reduce the amount of space in the rest of the car. All told, the hybrid components including an electric motor add a modest 75 kg (165 lb.) to the total weight of the car.

The battery employs the same chemical principle as those used in laptops and mobile phones, but Mercedes execs insist there is no danger of the overheating that has plagued consumer electronics makers. In the unlikely event that the battery gets too hot, says Oliver Vollrath, strategic director of the S-Class hybrid project, the system will shut down automatically. In any event, Vollrath says the car's power-management system precludes any such problems. "You can be sure that what happens in laptops won't be a problem in automobiles," he says.



Besides being more efficient than competitors, the battery also helps Mercedes meet its long-term goal of offering better mileage without any sacrifices in performance and comfort. Following the S-Class launch, the company aims to add at least one hybrid model a year. "We have to ensure that people in six years will be able to drive a big car without sacrifices or a bad conscience," says marketing chief Maier.

1996 Ferrari 456 GT Coupe



I've often told people trying to squeak into a Ferrari that if they can't afford the best example, they really can't afford an edgy one

by Steve Ahlgrim


Not since the 412's demise in 1989 had Ferrari offered a 2+2, and when the 456 GT debuted at the Paris Salon in October 1992, it was obvious that the long-awaited newcomer eclipsed all Maranello's previous four-seat Grand Tourers.



Although new from stem to stern, the 456 GT incorporated elements familiar to generations of Ferrari cognoscenti—front-mounted 4-cam V12, rear transaxle, tubular steel spaceframe chassis, and all-independent suspension—while making an appearance for the first time were electronically-controlled adaptive suspension and a 6-speed gearbox (there was also an optional automatic).

Essentially a detuned version of the engine powering the 550 and 575, the new 5.5-liter V12 unleashed no less than 442 hp. Except for the F40, the 456 was the most powerful road car developed by Ferrari up to that time.

For the 456, Pininfarina worked its magic once more to create a subtly beautiful curvaceous body contrasting with the hard edges of its predecessor. Aerodynamically efficient, the 456 remained stable up to its maximum of around 190 mph, a figure that made it the world's fastest production four-seater passenger car. Acclaimed on its debut, the 456's styling has not dated and is a tribute to Pininfarina's farsightedness in creating one of most successful designs of modern times.



Supplied new via Maranello Sales in June 1996, this rare manual transmission example has covered only 38,000 miles from new and remains in good condition throughout. The car has been in storage, unused, for the past couple years and thus we recommend a thorough service/checkover be carried out prior to use.

All handbooks are in the correct wallet, including a fully stamped service book. Ferrari 575 wheels and front disc brakes/calipers are the only notified deviations from factory specification.

THE SCM ANALYSIS
This car sold for $66,326 at Bonhams's Goodwood Festival of Speed auction on July 11, 2008.

The 456 was Ferrari's attempt to make a car that was "different from the other cars in all aspects by synthesizing the performance and driving pleasure of a sports car with the comfort and space of a gran turismo." That was a lofty goal and one that could only be achieved by small increments of differences given the fine gran turismo offerings from the competition. Ferrari's ultimate talent is its ability to exploit small increment improvements to make a truly superior car, and in that regard the 456 is a success.



The silhouette of the 456 is a masterpiece of Pininfarina design. It is a perfect balance of aggressiveness and elegance. The proportions are large enough to say, "I'm a grown man's car," but compact enough to be sporty. It is a hallmark of highline Ferraris that every centimeter of the interior is covered in plush carpet or rich leather. The 456 ups the bar with a warm interior that's elegant, simple, and uniquely Italian. Complementing the appearance, the interior has all the fully adjustable, electronic, and automatic features you would expect to find on a luxury automobile.

BREAKING TIRES LOOSE LIKE A MUSCLE CAR
Mechanics are the heart of any Ferrari, and in this area the 456 does not disappoint. The V12's nearly 450 horsepower is impressive, but the magic is the 398 ft-lb of torque at the sweet spot of just 4,500 rpm; the 456 can break tires loose like a skinny-tired muscle car. Variable-ratio power steering, three-way adjustable suspension dampening, self-leveling rear ride height, and a speed-activated rear spoiler ensure the handling is up to the performance. In short, the 456 is one heck of a nice car.

Ferraris are a rich man's toy, and nothing demonstrates the principle like a 2+2 Ferrari. Two-plus-twos are the workhorses of the Ferrari marque. They are designed to be a practical daily driver and are often used as such. Regular use translates to higher mileage, more interior wear, more exterior damage, and in general, less care. Rich new car buyers like to drive new, flawless, low-mileage cars, so after a few chips, their 2+2 gives way to a new car.

Slightly less rich people also like flawless low-mileage cars, so the natural buyer for a used 2+2 often avoids those cars with a few road scars in favor of a new something else. This leads to massive deprecation and a chance for a simply well-off enthusiast to own a wonderful car for a fraction of its original selling price. Life couldn't be better, could it?

I've often told people trying to squeak into a Ferrari that if they can't afford the best example of the model they are looking at, then they really can't afford an edgy one. Expensive cars have expensive problems. Just because a car's depreciated 75% doesn't mean the repairs are 75% less. As a car depreciates, the cost of repairs stays the same and the chance of needing repairs goes up. Mike Sheehan's "miracle of depreciation," which makes late-model Ferraris affordable, is of course balanced by the reality of maintenance.



The 456 drivetrain is solid and reliable, but everything else is the luck of the draw. These cars are piloted by no less than 23 Electronic Control Units, which control starting, stopping, turning, as well as most every other aspect of the car. These sophisticated low-production modules are unusually expensive and often under-engineered for the job. Diagnosis of electrical problems often requires a $20,000 computer that is almost exclusive to Ferrari dealers. Lucky owners get by with reasonable routine maintenance; unlucky owners see five-figure bills.

DON'T COME WHINING TO ME
Bonhams's 456 was not the kind of car you want to buy at auction, unless you've had a chance to find out more than the catalog offers. The catalog states without explanation that the car has been in storage, unused, for the past couple years. Besides the normal concerns of buying a car that has been stagnant in storage, you have to question why it was retired in the first place. This is a car that was designed for regular use. A 456 doesn't get put away for preservation or because it's become tedious to drive. They get put away because of things like the very-expensive-to-fix window problem, where the side windows no longer go up all the way and the owner gets frustrated with wind and water leaks. The catalog warns that the car should be checked over before use. In car talk that means, "Don't whine to me when you get a big bill, I warned you to have it checked out." It's a reasonable bet that the first few miles won't come cheap for the new owner.

This is an interesting car to value. The SCM Platinum database shows 2007 sales of 456 GTs from a low of $52,400 on eBay to an absurd high of $154,000 at a Monterey auction. The Bonhams car being a rare 6-speed 1996 model and an equally rare right-hand-drive model in need of service adds to the confusion. This could be a difficult car to sell on the open market, but on July 11, there were at least two people who wanted it. The result was about what I would have expected for a good left-hand-drive example at a U.S. auction, and it fell in the middle of SCM's price guide range. Given the storage and service issue, I'd call this one well sold.

BMW smoothes out flagship's design
Where the outgoing 7 was startling, even jarring, the incoming one is comforting and elegant




by JEREMY CATO

DRESDEN, GERMANY — Among gearheads and even casual auto observers, BMW design chief Chris Bangle is a lightning rod. He sparks passionate responses — and not all of them are friendly.

He's been called "reckless," "a failure," the champion of a BMW design language that features "hideous wedges and triangles" and "flame surfacing" that has "led to revolt among BMW drivers and among Internet forums," as one reader recently put it to me.

Oh, yes, the American-born design boss has his detractors. In fact, at one time, more than 14,000 people had signed an online petition to have him fired. BMW has never admitted it, but it is clear that in answer to the critics the company toned down some of the extreme design details in a 2005 reworking of the 7-Series car introduced in 2001.

Bangle weathered that storm and remains reluctant to discuss these matters in much detail. Besides, he has more admirers than critics. For instance, just last year Bangle and his BMW stylists won the prestigious Red Dot award as Design Team of the Year.

This is a big deal. The competition attracts thousands of entries every year, all vying to get the nod for continual design innovation. Former winners of the team award include LG Electronics, adidas, Pininfarina, Nokia, Apple and Siemens.

But the real measure of Bangle is found in sales and profits. It's one thing to sign an online petition, but quite another to sign a cheque on a car designed by Bangle's team.

The fact is, BMW has been making plenty of money even as Bangle and his team have transformed the look of every vehicle in the BMW lineup, while making some enemies along the way.

This decade, BMW has rung up a string of profitable years and, while 2008 looks challenging thanks to global economic issues, it still expects to achieve a return on sales of 4 per cent for 2008 — after earning nearly $5-billion (U.S.) in 2007.

In business, awards like the Red Dot are nice and they are fun to celebrate. But the final scorecard has two columns: sales and profits.

BMW's profits, while under obvious pressure and sagging a bit here as 2008 winds down, remain very real. As for sales, just a few days ago, BMW said it is "well on course" to achieve its goal of selling 1.8 million cars in 2012 — up from 1.5 million last year.

In driving those sales, BMW has particular interest in one key new model — the 2010 7-Series set to go on sale next spring. Its exterior look has certainly been toned down compared with the previous model.

The man who did the exterior design is, in fact, a young protégé of Bangle's, Canadian Karim Habib. This 7 is a more classic look, he says, pointing out that it is the right look for these particular times.

Classic? Or conservative?

Make no mistake, while the outgoing 7 has been a relative sales success with some 350,000 sold worldwide since being unveiled in 2001, it is worth pointing out that the fourth-generation 7, the outgoing car, was outsold last year by the rival Mercedes-Benz S-Class (85,500 units) and Lexus LS (71,760). In 2007, BMW sold fewer than 50,000 of the 7-Series.

This latest 7 will not spark the same visceral explosions as the old one. BMW is returning to simple, sleek lines, eschewing the "tearful" headlights and the over-the-top curves of the lower lid. Most of all, the new design has once and forever tidied up the bulging trunk lid that critics dubbed the "Bangle butt."

Where the outgoing 7 was startling, even jarring, the incoming one is comforting and elegant. This may in some way reflect the exterior designer himself.

Habib, a former world-class fencer whose family emigrated from Lebanon before he caught the eye of Bangle while still attending design school, was recruited into BMW based on sketches for an original take on a violin. Habib has carefully combined some key elements of the German auto maker's 3-Series coupe and the 5-Series sedan in the new 7. Then he's added some original flavour.

Well-heeled, status-conscious but somewhat-conservative buyers might very well fall in love with it. Those are the buyers BMW wants now. Unlike in 2001, this time around BMW does not need the 7 to make a radical break with its past — to create interest beyond BMW's traditional customer base.

What we know is that BMW's most senior management took this redesign very seriously. Six competing design teams submitted potential designs and, in the end, Habib's survived an exhaustive evaluation process that consumed the attention of the entire management board.

The challenge with all BMWs, says Habib, is to create a look that expresses "authenticity and engineering precision," a car that says it is powerful, dynamic and modern using traditional BMW elements of "stance and proportion" — that is, the long nose and short deck, most importantly.

Aside from the exterior, though, the flagship of BMW's line also has some radical innovations under the skin. The auto maker plans to introduce a thermal imaging camera that spots stray pedestrians at night, as well as offering Internet access and four-wheel steering to tighten the turning radius.

Thankfully, BMW has continued to refine its controversial iDrive system, adding extra buttons to make it easier to point and click through various menus on the in-dash display. BMW has now wisely added a button mounted near the armrest for instantly controlling the vehicle's suspension system, climate control, satellite navigation and entertainment systems.

The problem is, iDrive — as well as similar systems offered by Mercedes, Audi, Infiniti and others — is fundamentally flawed.

To operate so many of the car's functions, the driver needs to take his or her attention off the road, fiddling with an array of choices presented on the screen. Thus, it is critical to set all the car's functions before you start driving.

In fairness, BMW keeps working on its iDrive system and it is getting better. What choice did the Bavarian auto maker have?

Keep in mind, the competition for buyers of luxury sedans has never been more intense. Aside from entries by Mercedes and Lexus, Audi is readying a new version of its A8 and there is talk Infiniti is looking at reintroducing a model to replace the former Q7 sedan.

BMW's intent is to ignite new passion for the 7 despite its rivals. What this car won't do is set off a firestorm of protest and derision — the likes of which we saw with the introduction of the last 7.

Volvo profits slump as truck demand falls

by Peter Stiff

Volvo, the world’s second largest truck maker, this morning reported a 37 per cent fall in third-quarter net profit and cut its growth outlook on both sides of the Atlantic in the latest sign that the global economy is heading for recession.

The company, which makes trucks under the Renault, Mack and Volvo brands, said that the economic downturn had been “significantly exacerbated” by the world financial crisis.

It said demand in Europe had declined significantly, that North America and Japan continue to be weak and the economic climate was having an effect in other parts of the world. Total truck orders for the quarter fell 55 per cent to 32,072.

The group, which also makes buses and construction equipment, has lowered its forecast for the truck market this year and now expects Europe to see growth of no more than 5 per cent, compared with 10 per cent, while it believes its North American market will contract by about 10 per cent from its already low level, rather than remain flat.

The Gothenborg-based group, which sold its car division to Ford in 1999, said European customers had adopted a wait-and-see attitude to orders of new vehicles and equipment, and had increasingly opted to cancel existing orders. It said net European orders for the quarter were flat as orders received were cancelled out by orders removed. In response, it will lower output and cut jobs.

The company said yesterday that it would need to slash another 850 jobs at its construction equipment unit in Sweden after cutting 500 staff earlier this year. Last month Volvo's truck business said it would cut 1,400 jobs at its plants in Belgium and Sweden.

The company will also close a factory in Canada because of lower North American demand.

For the three months to September 30, Volvo reported net income of SEK2 billion (£163 million), down from SEK3.1 billion in the same period last year.

It added that profitability had come under pressure because markets had deteriorated so rapidly that it had not been able to reduce its costs at the same pace.

Scania, a smaller truck manufacturer, also gave warning of falling demand today, posting a lower-than-expected rise in third quarter pre-tax profit of SEK2.5 billion, compared with SEK2.4 billion last year, adding that customers in its key European market were becoming more cautious about placing new orders.

(10-24-2008 03:22 PM)saradoc Wrote:  BMW smoothes out flagship's design
Where the outgoing 7 was startling, even jarring, the incoming one is comforting and elegant

If I had a lot of money, I would buy this car for my partner

Does your partner like cars from BMW?

I don´t know. But I hope he would like this present.