Vehicle sales slowed significantly in August on continued high fuel prices, tough luxury car taxes and an increasingly weak dollar but despite the economic pressures on the industry, year-to-date sales are still ahead of last year’s record volume. The outlook for the rest of the year isn’t all roses, however, as the slowing trend is likely to continue due to local and global factors, but Toyota's strong sales continue to buoy the struggling industry.

Tough times for the economy as a whole and local car manufacturers, in particular, have lead Ford Australia to cut the jobs of 350 workers, or about 15% of the company’s local workforce. At the same time, Bill Osborne, Ford Australia’s CEO is stepping down after just seven months at the helm.

The all-new Ford FG Falcon today became the first car to offer two new satellite technology features - the Suna Traffic Channel and Sensis Whereis Version 15 map data. These features integrate with the satellite navigation system throughout the Falcon line to offer the latest in traffic and destination information and improve the system’s performance and convenience.

The European Union has taken the first major steps to establishing a next-generation vehicle-to-vehicle communications system by passing a motion today to reserve an EU-wide frequency band for vehicle applications. With a targeted goal of reducing road accidents, the motion aims at enabling co-operative systems between carmakers and is expected to lead to an eventual roll-out of the first production examples shortly after 2010.

Ford and General Motors are reportedly in talks about co-developing new powertrain technologies as the two Detroit giants struggle to reduce costs in the wake of massive losses this year. According to sources at both companies, GM first approached Ford over a month ago and since that time there have been at least three meetings that have taken place between the two.

The first-generation Ka was never a big seller despite Ford’s best attempts to promote it, even snaring Kylie Minogue at one point to help sell the tiny hatch. Its awkward styling and budget connotations didn’t serve well, and with fuel prices at its launch back in 1999 less than half the price they are today many buyers wouldn’t have looked twice at Ford’s odd econo car. The newest version hopes to capitalise on the changing times as well as spice up its own image with its new design.

Microsoft today announced that it will expand its automotive business unit with a number of new interface software systems and electronic services expected to be rolled out over the next couple of years. The software giant has already partnered with Ford in the U.S. for its Sync program, and with Fiat for its globally available Blue&Me range of in-car connectivity technology, but the new program aims to get Microsoft more involved in the industry and the future of in-car computer systems and services.

America’s ‘Big Three’ carmakers, located in the ancestral home of the mass-produced automobile - Detroit, Michigan - have had a hard time over the past several years, and especially the last several months. All have reported losses in the billions at some point, with sales dropping precipitously - by as much as 25% in a single month - thanks to outdated lineups and a lack of fuel-conscious small cars. Chrysler’s report of a $515 million lost for the first quarter doesn’t provide much hope that things are soon to change, but it’s not as bad as rival Ford’s $8.7 billion second quarter loss.

Ford has reported an AU$9.1 billion net loss for the second quarter of the year, with declining sales of its North American market utes and SUVs and a pre-tax special charge of $8.4 billion taking the brunt of the blame for the poor result. The company’s Asia-Pacific-Africa operation, which includes Ford Australia, saw a pre-tax profit of $52.4 million, nearly double last year’s result, despite bringing in the same $1.78 billion in revenue.