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EMIRATE APPROVAL FOR DAIMLERCHRYSLER: The Gulf emirate of Dubai has become DaimlerChrysler's third-biggest shareholder with …

EMIRATE APPROVAL FOR DAIMLERCHRYSLER: The Gulf emirate of Dubai has become DaimlerChrysler's third-biggest shareholder with the purchase, announced on Sunday, of $1bn worth of shares in the German-US car manufacturer.

The transaction represents a vote of confidence in DaimlerChrysler's growth prospects, and contrasts with the experience of Volkswagen, whose attempts to secure the state of Abu Dhabi as a major shareholder collapsed last September.

AUDI'S NEW SUVs FOR U.S.: Audi is to introduce two SUV models to the US market in the next few years. According to Johan de Nysschen, executive vice president of Audi of America, the seven-seat Q7 goes on sale there in March 2006. He told the US car industry publication Automotive News: "About three years from now, the Q7 (pictured below) will be followed by a smaller SUV based on the A4. "You cannot be one of the leading players in the US market if you do not have an SUV," de Nysschen told the paper. "We probably waited a bit too long here at Audi."

DIESEL PUMP RECALL: BMW will recall all cars equipped with a faulty diesel fuel-injection pump supplied by parts maker Robert Bosch.

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However, the recall will only affect a handful of vehicles as the faulty pumps were only fitted in related cars produced from November last year, many of which have not yet been delivered. The company said it was too early to quantify at present the number of cars in question or the costs for the recall.

Audi and Mercedes were also supplied with defective diesel fuel-injection pumps. The faulty component doesn't represent a safety risk, according to the car makers.

It causes the motor to stall after a significant amount of mileage. Bosch said it aimed to solve the problem by today.

MERCEDES-BENZ SET FOR GROWTH: Mercedes predicts growth from a wide market spectrum for their new second generation A Class (above) which is on Irish sale.

"We would hope to take buyers from established popular volume cars like the Ford Focus, VW Golf and Opel Astra," said managing director Matt Fagan at the launch. He envisages sales of 700 this year, with growth well into four figures next year.

Irish prices start at €22,650 for the three door coupé A150, while the diesel line-up starts with the A160CD1, a 2.0 litre 82bhp unit, at €25,975.

Motors will have a road test of the new A150 next week.

LEXUS EXPANDS DEALER NETWORK: Lexus has expanded its dealer network to nine, following the appointment of three new dealers in Limerick City, Letterkenny, and Wexford town.

Tom Hogan Motors, who have an existing Lexus dealership in Galway, will open a new Lexus dealership in Limerick City, operating from a temporary site on the Dock Road until new facilities are built.

Kelly's Sales & Service has been appointed as the Lexus dealer for the north-west.

In Wexford, Vincent and John Doyle have been appointed as the Lexus dealer. Doyles Lexus will operate from a temporary site on the Rosslare Road.