Wolfsburg, Germany - Germany's biggest carmaker said Wednesday that its core Volkswagen brand posted an operating loss of 279 million euros (368 million dollars) in the first quarter of 2009. The company said sales of VW models slumped 15 per cent to 765,000 and turnover dropped 20.8 per cent to 14.3 billion euros as worldwide demand for cars dropped in the face of the global economic downturn.

The 1st quarter loss compared to an operating profit of 461 million euros in the same quarter of 2008.

Volkswagen's Spanish subsidiary Seat posted a loss of 145 million euros compared to a a profit of 12 million euros in the first quarter of 2008.

Struggling with the impact devaluation of rupee on its business, the Honda Siel Cars India, Limited (HSCI) is looking to hike Honda CR-V prices in India. The HSCI has disclosed that the Honda CR-V prices could be increased by 30 percent in India. The HSCI is joint venture between the Honda Motor Company Limited, Japan and Siel Limited, a Siddharth Shriram Group company.  

Hethel, England - The British sports car maker Lotus has cut fuel consumption and emission figures for the 2010 Exige and Elise models by about 9 per cent.

Paris - French car maker Renault has announced that the new Grand Scenic van, which seats between five and seven people, is available in European showrooms with a starting price of 20,200 euros (26,370 dollars).

Standard equipment includes Electronic Stability Programme (ESP), six airbags, air conditioning, CD-Radio and electric parking brake.

The new generation Grand Scenic is seven centimetres longer at 4.56 metres with improved head and knee space, according to the manufacturer.

Hamburg - Rare classic cars are achieving record prices at auctions as investors moving their money into material assets during these uncertain economic times.

"People who have lost trust in the stock market are putting their money into things where they hope to maintain or increase the value of their money such as in old cars," says Dieter Ritter from the German automobile club (AvD).

Munich - Most car breakdowns are caused by defective batteries and the electronic system, according to figures released by Germany's automobile association ADAC.

About 40 per cent of 2.5 million breakdowns listed by the ADAC were a direct result of battery problems.

"This confirms a trend over several years," said ADAC spokesman Maximilian Maurer. Battery technology has remained the same for the past two decades while having to cope with more electronic equipment such as seat heating and electric windows.

"The average car battery today has a lifespan of between four and six years. More is just not possible," Maurer said.