Briefs

Honda profit to dip

TOKYO (AP):Honda's profit for the fiscal year through March 2012 is expected to plunge 63.5 per cent as vehicle sales slipped amid a parts shortage caused by the quake and tsunami in northeastern Japan.

Honda Motor Co gave the forecast Tuesday, more than a month later than usual. Like other Japanese automakers, the maker of the Odyssey minivan and the Fit compact needed more time to assess the aftermath of the March 11 disaster.

But Honda said vehicle production in Japan is expected to be back at nearly normal levels by later this month, and production in regions outside of Japan is expected to be back up to pre-disaster levels in August or September.

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Saab in Chinese deal

STOCKHOLM (AP):Saab owner Spyker Cars NV on Monday announced a £245 million (US$351 million) deal with two Chinese auto companies to distribute and manufacture Saab cars in China.

The non-binding agreement with Zhejiang Youngman Lotus Automobile Co and Pang Da Automobile Trade Co is the latest attempt by Spyker to turn around the loss-making brand it bought from General Motors last year.

Under the deal, which needs regulatory approval, Youngman will invest £136 million for a 29.9 per cent interest in Spyker and stakes in two joint ventures being formed to distribute and make Saab cars in China.

In addition, Pang Da will increase its investment in Spyker to £109 million from a previously agreed £65 million to retain a 24 per cent stake in the company.

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Fewer cars in May

WASHINGTON (AP): Americans bought fewer cars in May, pulling retail sales down for the first time in nearly a year.

Sales among US retailers fell 0.2 per cent last month, the Commerce Department said. It was the first decline after 10 straight increases.

Auto sales dropped 2.9 per cent, the largest decline since February 2010. But excluding the weak car sales, retail sales rose 0.3 per cent.

The slump in retail sales was the latest report signalling that the economy has lost momentum. US consumers are struggling to deal with high gasolene prices and a slowdown in hiring. While the surge in gas prices eased in May, pump prices are still significantly higher than a year ago. 

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Avis, Budget brands merge

DETROIT (AP): Car rental company Avis Budget Group Inc said Tuesday it will take over Avis Europe in a US$1-billion deal, raising the possibility that Avis Budget may back away from a bidding war for US rival Dollar Thrifty.

The move reunites Avis Europe, which separated from Avis in the 1980s, combines the Avis and Budget brands worldwide, and creates what the company said is the largest publicly traded rental car business in the world.

Avis Budget has been in a tug-of-war for more than a year with rival Hertz to buy Dollar Thrifty Automotive Group Inc, and the European acquisition is an indication that Avis Budget is moving away from the pursuit.

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Out of the loop

WASHINGTON (AP): Used-car dealers may be selling cars and trucks that have been recalled but not repaired because manufacturers don't send them the same recall notifications that are sent to franchised dealers, said a study by a government watchdog.

Even if used-car dealers or franchised dealers know of a recall, there is no requirement that they tell prospective buyers or make the repairs before a sale, said the Government Accountability Office study released last Wednesday. Nor does the National Highway Traffic Safety Administration, which oversees auto safety, have the power to order dealers to make the repairs or to warn buyers.

The safety administration also lacks the authority to require automakers to inform used-car dealers of recalls. 

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Full production

ERLANGER, Kentucky (AP): Toyota said last Thursday it expects to return to full North American production in September, faster than it expected following parts shortages stemming from the March earthquake and tsunami in Japan.

Toyota Motor Corp said its North American production is currently at 80 per cent on average. Eight of its 12 North American-built models returned to full production on June 6, the automaker said.

The March 11 earthquake and tsunami damaged auto parts plants in northeastern Japan and cut power to others, interrupting the supply of car and truck parts to carmakers across the world.