Peugeot Citroen in Spain recalled more than 2,000 cars accelerator pedal. According to sources, the recall is quite similar to that noticed by Toyota for eight models of its brand including the Aygo city.

The models include Peugeot 107 and Citroen C1, which is said to have some problem with its accelerator pedal. Moreover, the company has also announced that it will do a free update.

According to the statement issued by the car makers’ association ANFAC, the country’s car sales for the month of January increased by 18.1% as compared to the same period of 2009, but will decrease in the second half of this year as Spanish government subsidies fade away.

Moreover, the hike in car sales comes after a rise of 25.1% in the month of December and 37.3% in the month of November. Car sales decreased 17.9% in last year to 952,772 vehicles.

The National Automobile Manufacture Association (Anfac) has announced that the production at automotive plants in Spain surged 5.7 percent during the last month as compared to October 2008.

Output during the last month totaled 218,721 units along with private passenger vehicles stood at 184,119 units, up by 16.7 percent from October 2008.

However, production remained down by 14.5 percent year-to-date due to the fact that the local and European markets contracted sharply as the recession captured the markets all over the world in the year.

The US auto maker General Motors has announced that it will keep all four plants of its European subsidiary Opel in Germany, but may shed 9,500 jobs in Europe as part of its restructuring.

While talking to reporters, the head of GM's European operations Nick Reilly confirmed that the state premier of Thuringia in eastern Germany Christine Lieberknecht that Opel's Eisenach facility in her state will remain open.

Further he said, "Opel needs to restructure the company and to reduce its capacity by 20 per cent to make it profitable again and to remain globally competitive."

The new German coalition government led by Chancellor Angela Merkel was in confusion over the issue of state aid for Opel, while other European Union states with Opel factories had pledged more than euro 1 billion.

According to the statement, ahead of a visit by new General Motors (GM) Europe chief Nick Reilly to Brussels, Spain, Britain and Belgium had offered state aid 300-500 million euros each to return Opel to profitability.

SEAT, the ailing Spanish subsidiary of German auto giant Volkswagen, has announced that it aims to reduce production at its plant in northeastern Spain next year because of the reduction in demand.

According to a SEAT spokesperson, about 7,484 employees will be affected by the cuts at the plant in Martorell.

Further, he said, “The plan envisages a period of 51 days of work reductions spread out over three production lines at the factory in 2010. The sale of cars has recovered in recent months, the market is better, but that is not enough, and we have had to adjust production.”

Ford Motor Co has announced that its European sales in the month of October have increased by 13%.

However, the company has also expressed concern about the strength of the market in 2010, when car-scrapping incentives end.

While addressing a press conference, the sales chief of Ford Europe, Ingvar Sviggum said, “This is the strongest October we’ve had in Europe for past 12 years”.

Further, he added that Ford is now the second-best-selling auto brand in Europe.

French carmaker Renault SA has expressed its plans to manufacture electric automobiles based on the Twizy Z.E. concept cars at its Valladolid plant in northern Spain, from 2011.

The company said in a statement that it has selected Spain as its proximity to key Western European sales markets and to simplify logistics for the eclectic car project.

According to a report by Spain’s automotive industry association Anfac, new car sales rose significantly year-on-year in October 2009 by 26.4% from 77,686 units sold earlier to 98,202 units this year.

Out of total sale during Oct 2009, diesel powered cars held a major share of 71%, as compared to a 21% share of gasoline powered cars. The figure remained the same as in September 2009.

The few brands, which recorded year on year sales growth to date, were Chevrolet, Dacia and TATA motors with hike of 0.3%, 13.1%, 15.3% respectively for a ten month period.

Spain's industry minister Minister Miguel Sebastian said that a stimulus plan would be extended for one more year to increase cars sales in Spain.

Mr. Sebastian said that the ministry has granted 40 million euros for the extension of plan until the end of 2009. He added that it would finance the purchase of around 80,000 vehicles.

The industry minister also said that the plan would continue through 2010 also. He said that the measures taken in May had boosted car sales.

There had been a 20 per cent growth in sales in September, which had been the first monthly increase over a year.