MERC TO USE BMW DEVELOPED ENGINES:Mercedes plans to use four-cylinder direct injection engines developed by BMW's Mini (pictured) brand and built by PSA Peugeot-Citroën in the next generation of Mercedes-Benz compact cars.
Germany's Auto Bild, without citing sources, said Daimler intended to use the engines in the new B-Class compact from 2011. Co-operation would be confined to engines rather than complete compact car platforms from Mini, it added.
That meant prospects for using a Fiat platform for Mercedes compact cars had dwindled.
Fiat chief executive Sergio Marchionne said a deal that Daimler might reach with one manufacturer, did not necessarily exclude deals that it could make with others.
EU PARLIAMENT TO LIMIT CO2 TO 125g/km:The European Parliament is set to recommend a CO2 emissions limit of 125 grams per kilometre for Europe's new-car fleet, according to reports.
However, carmakers would have an extra three years - until 2015 - to meet the target. The European Commission is preparing new rules to reduce CO2 emissions from cars to 130g/km by 2012, down from about 160g/km at present.
But the parliament is expected to recommend an even tougher limit of 125g/km at its meeting today, according to Automotive News Europe.
British MEP member Chris Davies told the industry newspaper that the tougher target would be "a compromise between the factions within parliament and between the industrial and environmental lobbies".
US UNIONS TO VOTE ON NEW DEAL:Trade unionists will vote at six Chrysler plants in Indiana and Michigan in the next two days, which will be crucial in determining whether the carmaker succeeds in getting a new four-year contract with its workers.
Chrysler, majority-owned by Cerberus Capital Management, is facing unexpected opposition from the rank and file of the United Auto Workers, whose president, Ron Gettelfinger, initialled the contract with Chrysler on October 10th.
The agreement includes measures aimed at cutting Chrysler's healthcare bill and boosting its competitiveness.