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GM shifts gears, will keep Opel

General Motors' board of directors has decided that it will keep the Opel business and restructure it, putting an end to plans to sell the European operations to auto supplier Magna International. GM said it expects the restructuring of Opel to cost $4.42 billion (3 million euros), which it says is lower than the costs associated with outside bids for the company. GM said it will soon present its restructuring plans for Opel to the German government and other governments in Europe.

Chevy Spark Confirmed – the Yanks learn little cars!

All the grief surrounding the big three US makers (less so Ford) revolves around the lack of cars they make that can compete in the world in which we live. No longer, it would seem, are US car buyers prepared to put up with gas-guzzling, low-quality cars. The rise of the Japanese car in the US (Toyota is now the biggest selling car) has put the writing on the wall for years.

Cloud rises over diesel plan for Nissan Maxima

Nissan North America may postpone a V6 diesel engine planned for the Maxima sedan in 2010. Since the company revealed its Maxima diesel plan two years ago, gasoline prices have fallen dramatically, auto sales have collapsed and Nissan has begun reviewing product plans as it scrambles to restore profitability. "We haven't reached a decision on the diesel yet, but we have to consider where we want to put our capital investments," says Larry Dominique, North American vice president for product planning.