Auto briefs

Ford to cut plant shifts in three states

Faced with slowing demand for some of its vehicles, Ford Motor Co . on Monday said it would temporarily cut shifts at factories in Chicago, Louisville, Ky., and Cleveland. The automaker said the cuts would idle about 2,500 workers at the three factories, although under their contract with the United Auto Workers, they will get most of their pay. "We remain focused on our plan to return the North American automotive business to profitability," Mark Fields, Ford’s president of the Americas, said. "These actions are necessary as we align our capacity and product mix to meet real customer demand." The Chicago factory makes the Ford Taurus and Mercury Sable sedans as well as the Taurus X crossover vehicle. The Louisville Assembly plant makes the Ford Explorer and Mercury Mountaineer sport utility vehicles.

Fraser memorial set for April at WSU

DETROIT — A memorial service is being planned for former United Auto Workers president Douglas A. Fraser on the campus of Wayne State University. Fraser led the union through dark hours in the U.S. auto industry in the 1970s and ’80s. He died Feb. 23 at the age of 91. Mike Smith is the director of the Walter P. Reuther Library at Wayne State. He says in an e-mail the service is set for April 12 at the Community Arts Auditorium. Fraser was UAW president from 1977 to 1983 and was instrumental in the effort that saved Chrysler from bankruptcy in 1979.

Toyota to deliver plug-in by 2010

GENEVA - Toyota Motor Corp . plans todeliverplug-in hybrids powered by lithium-ion batteries to European fleet customers by 2010, Toyota President Katsuaki Watanabe said in a speech here Monday.His announcement highlightsToyota’s effort to bring a plug-in hybrid to the market as soon or faster than General Motors Corp. Toyotabegan testing a plug-in vehicle in Europe last September.The batteries for Toyota’s plug-in hybrid will be produced by the Japanese automaker’sjoint battery venture with Panasonic , Watanabe said.

SUV recall in ‘01 may have been a dud

Some General Motors Corp. sport utility vehicles from 2000 to 2002 are being investigated by U.S. regulators to review an earlier recall for brake lights after complaints that the repairs didn’t fix the flaw. The inquiry covers as many as 750,000 Chevrolet Blazer, Oldsmobile Bravada and GMC Jimmy and Envoy SUVs, the National Highway Traffic Safety Administration said on its Web site. GM called back 506,377 of the vehicles in November 2001 to fix a brake light that may not have worked when drivers hit the brake pedal, the Washington-based agency said. Since then, there have been 44 reports that the lights still didn’t work or that owners’ vehicles weren’t part of the earlier recall, NHTSA said.

Citigroup raises doubt on Ford revival

Ford Motor Co . was downgraded to "sell" from "hold" at Citigroup Inc., which said the world’s third-largest automaker faces a number of "rising headwinds." The brokerage slashed its price estimate for the shares 21 percent to $5.50, citing factors including a worsening consumer-credit outlook and a weakening housing market. "We see a number of growing vulnerabilities in the company’s turnaround," analysts including New York-based Itay Michaeli wrote in a note to investors date March 2. There is a "low likelihood of Ford’s relatively older product lineup holding domestic share in the first half of 2008."

Ford to sell $758M in German bonds

Ford Motor Co.’s European finance unit plans to sell 500 million euros ($758 million) of bonds secured by loans to buyers of its cars in Germany. FCE Bank Plc in Brentwood, England, will sell the securities in three parts with the biggest portion having the highest investment-grade ratings, according to a statement Monday from HSBC Holdings Plc , which is managing the sale with Fortis. The loans backing the bonds are mostly to German Ford customers buying new and used cars, Moody’s Investors Service said.

VW snaps up European truck makers

Volkswagen AG took control of Scania AB , buying the Wallenberg family stake in the Swedish truck company for 27 billion kronor ($4.37 billion) and clearing the way for a merger with MAN AG that would create the European market leader. Volkswagen increased its voting control of Soedertaelje-based Scania to 68.6 percent by acquiring shares for 200 kronor apiece from the Wallenbergs and their Investor AB holding company, the German manufacturer said. The purchase is likely to end wrangling over a three-way merger with Volkswagen’s commercial- vehicles unit and MAN, whose largest owner is also VW.