Auto Industry, Carmaker | featured news

U.S. auto sales boomed in August as consumers burned through $3 billion in government incentives, leaving automakers to contend with both inventory shortages and uncertain demand in the months ahead.

Once an industry laughingstock, S. Korean automaker sells value as its rivals falter.

Toyota is shutting the California factory it ran with General Motors for 25 years -- the first time the Japanese automaker is closing a major auto assembly plant ever.

Ford Motor Co. saw an increase in domestic sales this July over last, a Ford official told CNN Radio on Sunday. It was the first monthly sales gain claimed by a major automaker since the financial crisis began last year.

Facing a glut of unsold 2009 inventory, automakers and car dealers hope the government incentive can help them reduce supply before 2010 models arrive.

One-time restructuring gains gave Ford a quarterly profit of $2.3 billion, despite a loss at its automotive operations.

Hyundai Motors outshined its global rivals by reporting a record quarterly profit, as a weak won helped overseas sales and government incentives boosted domestic demand.

General Motors said its second-quarter sales fell 15% globally from a year earlier, but jumped from the prior period on strong demand in Asia.

Porsche has rejected Volkswagen AG's bid to take a 49% stake in the sports carmaker, a company spokesman said Monday.

The sports car maker's chairman accused VW of blackmail as he claimed Europe's biggest carmaker was exerting pressure to reach an agreement between the German groups.