Suppliers do more for Fiat in India
TURIN - Suppliers will do all stamping, body-in-white welding and painting at Fiat's Palio plant due in India in 2000.
Fiat will be responsible for engine production and final assembly.
Secret Fuji recalls anger ministry
TOKYO - Fuji Heavy Industries Ltd. is in trouble with Japanese officials for secretly recalling nearly 1.5 million Subaru vehicles in Japan. Heavy fines are threatened.
Problems including defective bolts, sensors and seats led to recalls of 11 models of cars and trucks between early July and late October. About 8,800 cars sold in Germany and Switzerland have problems that led to recalls in Japan, and the company is considering a recall in Europe.
Fuji said its engineers thought the problems were not serious enough to tell the government about them. Vice Minister of Transport Tadahiko Kurono said Fuji Heavy showed a 'low level of corporate maturity.'
James B. Treece
PARIS - PSA unveiled a Peugeot 106 prototype with a new lithium-ion battery supplied by Saft. The vehicle has a 200km range but will not go on sale before 2002.
Citroen Berlingo in Poland
PARIS - Citroen's Berlingo commercial van will be assembled by Daewoo at its Nysa, Poland, plant, starting in mid-1998. Daewoo will build around 4,200 C-15 vans for Citroen this year.
LONDON - The five-cylinder engine of a new VW Golf misfired during a test drive with journalists in the UK on 30 October. The misfire destroyed the air cleaner, damaged the throttle valve and caused the engine revs to increase. Similar misfires could prevent the driver from controlling the car's speed, said VW. Production will continue while the company investigates the incident.
New Kia boss
SEOUL - Kia Group has appointed former labor minister Jin Nyum as chairman. A Seoul court earlier appointed Jin as an administrator of Kia Motors and Asia Motors. The South Korean government wants state-owned Korea Development Bank to take a majority stake in Kia Motors and to sell Asia Motors. Kia Group's former Chairman Kim Sun-hong resigned. Creditors had demanded he leave.
Reuters News Service
PSA sales up 6.4%
PARIS - PSA/Peugeot-Citroen raised its worldwide car sales by 6.4 percent to FF131 billion ($21.8 billion) in the first nine months. The group sold 1,563,800 units, including 208,000 commercial vehicles.