Dearborn, MI, United States (AHN) – The Ford Motor Company reported its third consecutive full-year profit on Friday, announcing its best annual earnings since 1998.

Although 2011 was the second most profitable year in the company’s 109-year history, much of that profit was a non-cash gain from a large tax credit from past losses. That tax credit on the company balance sheet will shield it from taxes in the future.

However, without that credit, the car maker posted full-year and quarterly earnings that were less than last year’s profit and also below analysts’ forecasts.

That report of the earnings miss caused share prices to fall by 5.6 percent in trading immediately after the markets opened.

Ford’s 2011 net income of $20.2 billion was up from $6.6 billion in 2010. About $12.4 billion of that came from the accounting gain.

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Washington, D.C., United States (AHN) – BMW is recalling 89,000 Mini brand cars in the United States over faulty water pumps that can malfunction and cause engine compartment fires.

The recall comes some three months after the National Highway Traffic Safety Administration opened a defects investigation, citing 12 reports of fires in the vehicles.

Five of the fires reportedly destroyed the cars, NHTSA reported. BMW said it is unaware of any injuries or accidents caused by pump malfunctions.

The vehicles recalled include seven models of the Mini series, ranging in model years from 2007 to 2011. BMW is recalling 235,535 worldwide, including 88,911 cars in the U.S.

BMW will notify car owners by mail in February and dealers will replace the water pumps free of charge.

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Wolfsburg, Germany (AHN) – Volkswagen AG announced it had record sales of 5.1 million cars and sport-utility vehicles worldwide in 2011.

Sales were up worldwide by 13.1 percent in 2011 from 2010, company officials said.

Volkswagen is Europe’s largest carmaker.

Although much of its growth came from gains in China, India, Russia and the United States, its two largest markets were Europe and China. The Wolfsburg, Germany-based automaker sold 1.72 million vehicles in each of those markets.

However, company officials said they expected challenges in the market environment for 2012.

VW officials credited new versions of some models, such as the Passat, Jetta and Beetle for helping to boost sales in “difficult market conditions.”

The only region that didn’t record strong growth was South America, where sales increased by only 2.2 percent.

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Trollhattan, Sweden (AHN) – Swedish carmaker Saab is filing for bankruptcy after a deal to infuse Chinese funds fell through over technology licensing objections from American shareholders. The Chinese deal was the last hope for Saab, which has suspended work at its main factory and has failed to pay employees.

Saab CEO Victor Muller personally filed the bankruptcy papers and admitted it was “the darkest day in my career, probably in the history of Saab.”

“But we had no other alternatives,” Muller explained.

Saab was in talks with Zhejiang Youngman Lotus Automobile Co. Ltd. (Youngman) and a bank in China about an equity interest in in Swedish Automobile N.V. (Swan). However, General Motors (GM) opposed the deal, which would give Chinese investors access to sensitive automotive trade secrets and manufacturing know-how.

As a result, the company announced Monday that, “the Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors.”

In a statement, Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vanersborg, Sweden. Saab expects the court will approve the filing and appoint receivers within weeks.

In the meantime, Saab will continue operating.”We’re continuing to evaluate the situation. We’re determining the next appropriate steps,” Saab spokesperson Michele Tinson told the Detroit News. “It’s a little premature to announce any actions in the United States.”

The filing will be a total loss for Swan, which will completely write-off its stake in Saab.

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Zeewolde, Netherlands (AHN) – Cash strapped car maker Saab Automotive filed for bankruptcy Monday nine months after halting production due to lack of funds.

The filing follows former owner General Motors’ objections to a substantial investment from China’s Zhejang Youngman Lotus Automobile Co., that could have saved the 74-year-old brand.

In a press release the company said, “After having received the recent position of GM on the contemplated transaction with Saab Automobiles, Youngman informed Saab Automotive that the funding to continue and complete the reorganization of Saab Automotive could not be concluded. The Board of Saab subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interest of its creditors.”

Saab began in the town of Trollhättan in 1937 as Svenka Aeroplan Aktiebolaget to manufacture military aircraft. It diversified into cars in 1945. GM bought a 50 percent stake in the company in 1990 and took complete ownership in 2000. In 2010 Spyker Cars bought Saab from GM. The company filed for reorganization in 2009.

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Detroit, MI, United States (AHN) – Chrysler’s Dodge Dart has found new life as a smart car.

Chrysler Group LLC said its new smart car, the first vehicle to feature Fiat SpA technology, will be called the Dodge Dart.

The vehicle, currently in production, will be highlighted at the North American International Auto Show in Detroit in January.

The debut of the new Dart will mark the first small-car offering from Chrysler in more than a decade.

The car will also allow Fiat to increases its stake in Chrysler to 58.3 percent once the smart car is certified by the government as delivering 30 miles per gallon.

The Dart was first introduced in 1960 as a full-sized vehicle. It was later produced as a compact car from 1963 to 1976.

The price of the new Chrysler offering was not released.

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Derbyshire, United Kingdom (AHN) – Toyota has announced plans to add up to 1,500 new jobs at its Burnaston factory in Derbyshire in the United Kingdom.

Company officials say that Toyota will invest more than $155 million into making the factory its sole European plant for the next hatchback it introduces.

Prime Minister David Cameron was touring the factory when news of the new production was announced and he hailed it as a vote of confidence for UK manufacturing. He also noted that it would be a huge boost for the economy.

The new hatchback will be a small family vehicle similar in size to Toyota’s existing Auris model and cars by other manufacturers such as the Ford Focus and Volkswagen Golf.

The Burnaston factory is one of four Toyota vehicle-building factories across Europe and Russia. The plant currently employs more than 3,100 people and manufactures the Auris and Avensis models.

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Los Angeles, CA, United States (AHN) – The all new 2012 Honda Civic Natural gas car was named Green Car of the Year Thursday at the Los Angeles Auto Show.

The Civic, the only factory built CNG powered car produced in America, was presented with the honors by editors of Green Car Journal, representing a diverse panel of environmental experts and automotive enthusiasts who annually select a single vehicle for its outstanding environmental performance.

The Civic Natural Gas engine produces almost zero smog forming emissions, and it is the cleanest internal combustion vehicle certified by the U.S. Environmental Protection Agency.

The new car features new styling, enhanced feature content and increased fuel economy. The redesigned 2012 Civic Natural Gas can now be equipped with the Honda-Satellite Linked Navigation System which includes an exclusive database of publicly accessible Compressed Natural Gas refueling stations across the United States.

All Civic Natural Gas models are produced by Honda Manufacturing in Indiana using domestic and globally sourced parts.

In addition to being named 2012 Green Car of the Year, pervious versions of the CNG-powered Civic have topped the “greenest vehicle” rankings of the American Council for an Energy Efficient Economy for eight straight years.

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Detroit, MI, United States (AHN) – The sale of Saab to Chinese investors is going from a done deal to a deal undone by General Motors’ decision to stop supplying its technology to any potential buyers in China.

GM’s sudden announcement puts the brakes on the sale of Saab by its current owner, Swedish Automobile, to Chinese investors Pang Da Automobile Trade and Zhejiang Youngman Lotus Automobile.

Swedish Automobile purchased Saab from GM in 2010. GM was still supplying technology for the vehicles.

In the meantime, Saab has had financial problems, and auto production shut down earlier this year after Swedish Automobile was unable to meet payroll for Saab workers.

Pang Da Automobile Trade and Zhejiang Youngman Lotus Automobile offered to pay Swedish Automobile $138 million for Saab, and it looked like things would go smoothly. Then, GM announced it would not supply its technology to Chinese investors.

GM said it would not be in the best interests of GM or its shareholders to allow its technology to fall into the hands of competitors.

Swedish Automobile said negotiations would have to return to the “drawing board.”

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Stockholm, Sweden (AHN) – Struggling automotive icon Saab will change hands again in a proposed deal to save it from bankruptcy by selling it to two Chinese companies.

Swedish Automotive will sell its Saab unit to Chinese distributor Pang Da Automobile Trade and auto manufacturer Zhejiang Youngman Lotus Automobile. The two will pay a mere $142 million for the 62-year old auto manufacturer.

General Motors sold Saab to Swedish Automotive only 2 years ago as part of GM’s restructuring to avoid bankruptcy itself.

Since that sale, Saab has had extreme economic woes that it has not manufactured a car since April and it has been in court trying to avoid bankruptcy.

China has become the world’s largest market for automobiles.

Chinese automakers bought another iconic struggling automaker last year, Volvo.

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