VW to build engine plant in Mexico to supply Tenn. factory, source says

Volkswagen AG plans to announce Wednesday that it will build an engine plant in Mexico to supply vehicles assembled in North America, a source at the company's assembly plant in Puebla said. A VW spokesman confirmed that the company will make an announcement but declined to say what it will concern. The new plant will supply an existing VW plant in Puebla, 75 miles southeast of Mexico City, and one being built in Chattanooga, Tenn., the source said.

Citroen C1 Recall – only 36 UK cars affected

Citroen are recalling just 36 cars in the UK over the sticky throttle problem Yesterday we ran a story on the Toyota Recall spreading to affect Citroen and Peugeot, and commenting that we thought the number of cars in the UK that would be affected would be relatively small, certainly in comparison to the number of Toyotas affected. And it turns out we were right – just 36 Citroen C1s sold in the UK have a potential problem. Which is very good news for Citroen.

General Motors to keep green car technology in house

For the first time in its 100-year history, General Motors plans to design, develop and manufacture electric motors for its growing array of gasoline-electric hybrids and electric vehicles. The electric motors used in GM's current lineup of hybrids are made to GM specifications by outside vendors. GM wants to bring the design and manufacturing in-house to save money and to apply its own technology to boost performance, lower weight and reduce power consumption, said Larry Nitz, GM's chief hybrid powertrain engineer.