In what apparently would be part of Daimler AG’s a strategic plan to add to its capacity of the Mercedes-Benz, the Germany-based automaker revealed on Friday that it intends making a EUR1.5 billion investment at its most important Mercedes-Benz powertrain plant in Stuttgart-Untertuerkheim this year and in 2012.

In a development that might prove to be a serious setback for electric vehicles, the Chevrolet Volt plug-in hybrid vehicle from General Motors Co. (GM) is being subject to a formal safety defect investigation because of two fire incidents resulting during crash tests.

According to a recent report in German paper Bild am Sonntag, the global staff of Europe’s leading automaker Volkswagen (VW) will be increased by more than 10 percent next year.

In a decision that marks a fresh rescue plan for Saab Automobile AB, two Chinese automakers - Pang Da Automobile Trade Co and Zhejiang Youngman Lotus Automobile Co - have agreed to purchase all the shares of the troubled Swedish group.

Japan’s largest automaker, Toyota Motor Corporation witnessed a profit of 39% which surpassed the expectations of the firm. The profits incurred are expected to overcome the loss due to the catastrophe that occurred in the area on March 11.

German car maker- BMW AG owed its second quarter net profit to the China, as there is tremendous increase in the sales of its 5-series sedan and X-3 sport luxury models in the country. The total profit that Munich based company has witnessed is euro1.81 billion ($2.5 billion).

Automobile production has been encouraged in India. Indian government has redefined the meaning of completely knocked down (CKD) auto components. Higher import duties are assigned to assembled engines and gearboxes.

Earlier there is 10% import duty on CKD but now it has been raised to 30%, to encourage domestic manufacturing of the cars.