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The scramble for scarce tires

North American automakers are struggling with a nagging shortage of tires, caused in part by tire plant closings and rising demand for low-volume specialty tires. Automakers are paying much higher prices -- double-digit percentage increases from a year ago -- as tire makers gain pricing power. "We have been bombarded from every side for additional tires, and we can't keep up," said David O'Donnell, Continental Tire's vice president of original equipment in the Americas.

Reports that General Motors will sell Opel dismissed as 'nonsense'

German press reports that General Motors Co. is putting its European unit Opel/Vauxhall up for sale were dismissed as speculation by the division and as "nonsense" by a German state with an Opel factory. The magazines Auto Bild and Spiegel reported that GM is considering putting Opel up for sale as management is losing confidence that its European arm will return to profitability.

New Mercedes A Class: Production increased to meet demand

With over 70,000 orders already in the pipeline for the new Mercedes A Class, Mercedes are increasing production to meet demand. The increase in production at Mercedes plant in Rastatt, Germany, means adding a third shift to effectively increase production by almost 50 per cent and make a dent in the 70k plus orders Mercedes already has for the new A Class. That’s in stark contrast to the recent news that Mercedes is having to slash production of the S Class as sales falter, partly due to a new S Class in the pipeline for 2013 but also because buyers are falling in love with more compact offerings.