Auto briefs

Bush nominates new highway safety chief

WASHINGTON — The Bush administration has nominated David Kelly to lead the federal agency that regulates the auto industry. President Bush nominated Kelly on Monday to be the administrator of the National Highway Traffic Safety Administration. Kelly has served as acting administrator since mid-August. Kelly was a top aide to Nicole Nason, who departed as NHTSA administrator last month. The agency is closely watched by the auto industry because it regulates auto safety and issues gas mileage requirements.

Detroit City Council approves GM tax breaks

DETROIT — City Council members voted 7-1 on Monday to approve a $136 million tax break so General Motors Corp . can build its Chevy Volt at the Detroit/Hamtramck assembly plant. Council President Pro Tem JoAnn Watson was the lone holdout. The firm will make $600 million in improvements over the next 25 years at the facility, commonly known as the Poletown plant, and will boost its work force there by 550 people, an increase from the current 1,944. Projections show the plant will boost the local economy by $129 million over the abatement’s life.

Porsche makes offer to take over Audi

Porsche SE , maker of the 911 sports car, submitted a takeover bid for Volkswagen AG’s Audi luxury unit Monday, complying with legal terms two weeks after raising its stake in Europe’s biggest automaker. Porsche is offering $700 a share for the 0.86 percent of Audi stock that Volkswagen doesn’t already own, the Stuttgart, Germany-based company said Monday in a statement. The bid price is the lowest legally required, and Porsche reiterated that it has no plans to dissolve Audi. Porsche plans to sell whatever Audi stock it acquires to Wolfsburg, Germany-based Volkswagen, it said. Porsche aims to raise its Volkswagen holding in November to more than 50 percent from 35.1 percent. Audi shareholders have until Oct. 27 to accept the offer.

Report: Volvo considers 1,000 additional job cuts

Volvo Car Corp ., the Swedish carmaker owned by Ford Motor Co. , is considering additional job cuts as it seeks to trim costs to offset slumping demand. "We have to review the business," Maria Bohlin, spokeswoman for the Gothenburg, Sweden-based company said. "At the moment, nothing can be excluded." Volvo Cars plans to cut an additional 1,000 jobs, Swedish public broadcaster Sveriges Television reported Monday. Bohlin said the report is "speculation," and she declined to comment on the extent of the savings or job cuts being considered. Volvo Cars, Ford’s sole remaining Europe-based brand, had a $151 million loss in the first quarter. The company announced plans to cut 2,000 of its 24,300 jobs on June 25 because of the weak dollar, rising material prices and declining sales in the U.S. and Europe. Ford’s Volvo subsidiary is separate from Volvo AB, the Swedish maker of trucks and construction equipment.

Fiat buys 67% of joint venture with Serbia

Fiat SpA , Italy’s largest manufacturer and Serbia’s government signed an agreement setting up a joint venture with the former Yugoslavian republic’s state-owned carmaker, Zastava Automobili a.d. Fiat is buying 67 percent of the venture for $1 billion, while Serbia’s government will keep the other 33 percent, according to the contract signed by Fiat CEO Sergio Marchionne and Serbian Economy Minister Mladjan Dinkic in Belgrade.