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Mustang cocreator Donald Frey dies

Donald Frey, a senior product planning manager at Ford Motor Co. in the 1960s who along with Hal Sperlich and Lee Iacocca developed the iconic Ford Mustang, died on March 5 in Evanston, Ill., from a stroke. He was 87 years old.

Renault-Nissan and Mercedes get very cosy

The Mercedes Twingo? Almost, but not quite In yet another – highly expected – sign that the future for car makers is more and more co-operation, Renault-Nissan and Daimler (Mercedes-Benz) have today announced a wide-ranging alliance which will see much of the output of each company utilised by the other. Top of the list for starters is the joint development of the platform for the next SmartForTwo which will be shared by the next generation Twingo.

Volkswagen hits back, weighs making a bid for Porsche

Volkswagen is considering an audacious reverse-takeover bid for its majority shareholder, Porsche, in a twist in the drawn-out struggle for control between the two German carmakers. The Volkswagen Group's supervisory board is said to be weighing the possibility of purchasing Porsche AG, in a move that would relieve its holding company, Porsche SE, of massive debt that industry analysts suggest the company may not be able to fund should the world's financial crisis drag on well into 2010--a scenario put forward this week by the International Monetary Fund. The secret plan emerged as shareholders were set to convene at Volkswagen's annual meeting on Thursday, and it comes after Porsche revealed that it is carrying some 9 billion euros ($11.73 billion) in debt, most of it owing to interest on loans taken out to purchase its 50.8 percent stake in VW.