Ford Motor Company recently announced its agreement with an investor group of private equity firms under which Ford will sell its wholly-owned subsidiary, the Hertz Corporation, in a deal valued at about $15 billion, including debt. Hertz's sale will ensure Ford refocuses on its core business and the sale should provide some temporary relief as its North American operations continue to report losses due to high labour and material costs and a dwindling market share. Ford is expected to gain $5,6 billion once Hertz's debt is settled.

Volkswagen AG will cut its German workforce by thousands, by further implementing an early retirement programme. The global manufacturer added that others would be offered "early termination" packages to persuade them to leave the company. The company is reportedly operating over-capacity, but is bound by agreements with its powerful labour unions barring the firing of any German workers until 2011.

The South African Motor Industry Ombudsman announced that of the 8 640 requests for assistance it received from the public last year, most of the complaints were about poor service and engine problems. A spokesman for the independent body also noted that complaints relating to electrical systems, tyres, cooling systems, trim, instrumentation and ignition systems increased.

McCarthy Motor Holdings recorded sales of 72 00 vehicles in the year to June, but fell short of its 75 000 target mainly because of a decline in used vehicle sales. South Africa's second largest vehicle retailer after the Imperial Group, McCarthy increased its sales total for the year to June by 10 per cent over the corresponding period last year. The group recorded a 14 per cent increase in revenue to R13,6 billion, with profit up be 22 per cent to R500 million.

Combined Motor Holdings has acquired several franchise outlets in a multi-million rand deal with retail vehicle company Forza Group. The deal is said to be worth between R185m and R220m, and CMH acquires Investment Cars Bryanston and Hatfield, Lamborghini Johannesburg, Lyndhurst Auto Melrose Arch, Peugeot South Johannesburg, Lyndhurst Autobody Johannesburg, Waterworld, and Monaco Leisure and Boating Distributors.

Honda has announced that the first Japanese sports car to compete with the German and Italian marques, the iconic NSX, will be discontinued. Production of the European-spec versions of the hand-made all-aluminium NSX will cease in September, while Japanese- and North American-spec vehicles will run out in December. Its likely successor, the HSC concept was unveiled at the 2003 Tokyo Motor Show.

Fiat Auto SA recently acquired a battery of new export contracts. Magnetti Marelli, a subsidiary of the Fiat Group, was awarded a three-year, R700-million contract to export 24 000 catalytic converters a month, which will be fitted to the manufacturer's 1,33 JTD Multijet engines. Shortly before the announcement was made, Fiat Auto SA also announced that its supplier, Arvin Meritor had been awarded a R250-million contract to supply catalytic converter components that will be used in the Fiat Croma, the Fiat Punto Grande and the new Alfa 159. Additionally, Fiat Auto SA will also be exporting heat shields to the Cassino plant in Naples for use in the Croma's exhaust system.