Toyota Lexus to recall some 2006-2011 models due to fuel leak

GNN - Toyota Motor Corp (7203.T) will recall 422,509 of its luxury brand Lexus vehicles in the United States because of a possible fuel leak that increases the risk of fire, U.S. regulators said on Friday.
The recall covers Lexus LS from model years 2007 to 2010, Lexus GS from 2006 to 2011 and Lexus IS from 2006 to 2011.

The National Highway Traffic Safety Administration said fuel might leak where the fuel pressure sensor is attached to the fuel delivery pipe. If a spark occurs, fire could start.

Toyota told the NHTSA that it was not aware of any fires or injuries caused by this condition.

Beginning next month, Toyota is to notify owners of various versions of the three models affected and tell them to bring their vehicles into dealerships for repair.

(GNN , Reuters, Aip)(Reporting by Bernie Woodall; Editing by Lisa Von Ahn)

VW unveils multi-billion auto investments through next five years

GNN - Volkswagen AG (VOWG_p.DE) is to invest 85.6 billion euros ($106 billion) in its automotive operations over the next five years to push foreign expansion, new models and technology to back its quest for global leadership.

Volkswagen said the bulk of the cash will flow into developing more efficient vehicles and production methods, taking its capital expenditure to between 6 and 7 percent of revenue in the period from 2015 to 2019, which analysts said amounts to a slight hike in investment spending.

Analysts at investment banking advisory firm Evercore ISI said, "As expected, VW's five-year capex planning has not become a victim of the company's efficiency program which is, among other things, aiming at 5 billion euros of efficiency gains at the VW brand by 2018."

 
Volkswagen shares rose 1 percent, to 176.10 euros at 1140 GMT, while the DAX .GDAXI blue chip index was trading up 2 percent.

Around 41.3 billion euros of the investment plan will go toward developing a range of sports utility vehicles, modernizing part of the light commercial vehicle portfolio and toward developing hybrid and electric drives.

At the same time, investments are also planned in new vehicles and successor models in almost all vehicle classes, which will be based on modular toolkit technology and related components, the company said in a statement.

Volkswagen Group Chief Executive Martin Winterkorn said the investment plan will help it become "the leading automotive group in both ecological and economic terms with the best and most sustainable products."

Around 23 billion euros will be spent on expanding capacity at its plant in Poland where it builds Crafter vans, and the new Audi plant in Mexico, as well as on paint shops and a production facility to make vehicle parts.

Poised to meet its annual sales target of 10 million vehicles four years early in 2014, Europe's largest carmaker has also sought to embark on an efficiency drive to save 5 billion euros across its multi-brand group which includes luxury division Audi and Czech carmaker Skoda.

But squeezing budgets appears to be tough as VW faces costly commitments to develop fuel-efficient powertrains to meet carbon dioxide emission targets, and to beef up its troubled operations in the United States while expanding in China, its biggest market.

Volkswagen's Chinese joint ventures will invest 22 billion euros in new production facilities and products by 2019, the company said.

(1 US dollar = 0.8049 euro)

(GNN, Reuters, Aip)(Reporting by Andreas Cremer, Jan Schwartz and Edward Taylor; Editing by Kirsti Knolle and Vincent Baby)

Volkswagen seeks savings of 10 billion euros: source

GNN - Volkswagen Group (VOWG_p.DE) is seeking cost savings of around 10 billion euros ($12.4 billion), a source told Media on Friday.

"For the group, efficiency measures could amount to around 10 billion euros," a Volkswagen source said on Friday.

The move underlines how Volkswagen is still seeking to glean greater efficiencies from its business, which has lagged in profitability when compared with some of its peers.

In July, Volkswagen Chief Executive Martin Winterkorn told employees he was looking for 5 billion euros worth of efficiency gains at its core passenger-car brand by 2017, to close the profit gap with rivals.


(Corrects to say targeted cost savings are group-wide not just at the auto division)

(1 US dollar = 0.8052 euro)

(GNN, Reuters, Aip)(Reporting by Jan Schwartz; Writing by Edward Taylor; Editing by Alexander Ratz and Kirsti Knolle)

GNN Local Member / Umer Zada - P-C-N = GNN 9900661-758462