Briefs

Polo gets 'six stars'

Japanese New Car Assessment Programme (NCAP) testing awarded the Polo the top rating of 'six stars' for occupant safety.

The Volkswagen performed impressively in a total of three different crash tests, and it was rated the best import vehicle on the Japanese market.

Driver and front passenger safety were tested in a frontal impact at a 55 km/h, an offset frontal impact at 64 km/h with 40 per cent overlap and a side impact at 55 km/h with a trolley weighing 950 kg. The Polo dominated in the overall classification with top grades in all categories of occupant safety for driver and front passenger. Lower loads at the head, neck, chest, upper legs and lower legs validated the excellent safety of the Polo and brought it an additional 'plus' in the evaluation.

Kia recalls small cars

DETROIT (AP): Kia Motors Corp is recalling more than 58,000 Spectra compact cars registered in cold-weather states because the gas tanks could fall off and cause a fire.

The recall affects Spectra LD models from the 2004 to 2007 model years in 20 states and Washington, DC, the National Highway Traffic Safety Administration said on its website last Friday.

The cars, built from November 7, 2003, through March 6, 2007, have straps that hold the gas tank to the frame. When exposed to road salt, the straps can rust and the tank can fall to the ground, causing a fuel leak and possibly a fire.

Kia said in a statement Friday it is not aware of any fires caused by the problem.

Chrysler to repay US$7.5b of bailout

DETROIT (AP): Chrysler will soon repay US$7.5 billion in bailout money from the United States (US) and Canadian governments, another sign that the company is recovering from its near collapse two years ago.

The company will pay back that government debt later this quarter using money from new bank loans and an upcoming bond sale. Chrysler has been negotiating a loan refinancing deal with Morgan Stanley, Goldman Sachs, Citigroup and Bank of America. Details could be disclosed on Monday.

The refinancing would allow Chrysler to repay a big chunk of the bailout from the US and Canada that helped the company get through bankruptcy in 2009. It would also help the automaker save millions by lowering interest payments and bolster its case for a public stock offering as early as the end this year.

The maker of minivans and jeeps has come a long way since filing for bankruptcy protection on April 30, 2009, when its survival was in doubt.

Honda profit drops

TOKYO (AP): Honda Motor Co said Thursday its quarterly profit dropped 38 per cent due to a slump in car production following last month's earthquake, and withheld earnings projections amid a chronic shortage of auto parts.

The company said it would let go all 600 contract workers at one of its two auto factories in Japan. Honda has been struggling to maintain limited vehicle manufacturing because of parts shortages following the March 11 quake and tsunami.

Honda's net profit for the January-March quarter shrank to 44.5 billion yen (US$545 million). Revenue fell 2.9 per cent to 2.21 trillion yen. 

Russian cash for Spyker closer

STOCKHOLM (AP): Spyker Cars, the tiny Dutch company that controls struggling automaker Saab, came closer to getting much-needed investment from Russian Vladimir Antonov after Sweden's debt office on Thursday approved his application to become a shareholder.

The decision means Spyker has cleared one of several hurdles in its attempt to solve a liquidity crisis that has forced it to suspend production at the Saab plant in western Sweden.

The Swedish government, the European Investment Bank and Saab's previous owner, General Motors, must also approve the application before Antonov's investment can go ahead.

GM said in a statement Thursday it has reached a tentative agreement with Saab to allow Antonov to become part-owner but added the plan "requires certain specific actions to be taken by Saab which have not yet been completed."