Despite the wave of plant closings in North America in recent years, nine out of 10 auto industry executives say the region still suffers from excess capacity because demand has fallen so sharply, according to KPMG LLP’s annual global survey.

The consulting firm says eight out of 10 executives say the same about Europe, but few express immediate concern about overcapacity in Brazil, China and India.

KPMG says executives believe that a lack of profit improvement will prompt stronger companies to acquire weaker ones. That consolidation is likely to result in more factory shutdowns, the firm says.

Industry leaders are bullish on Ford Motor Co.’s outlook. This year 29% of survey respondents expect Ford to hike its global market share, up from 13% a year earlier.

The major foreign carmakers in China are reporting robust year-over-year sales increases for 2009, when government tax cuts and other incentives boosted demand for small vehicles.

Volkswagen AG says it sold 1.4 million passenger vehicles in China last year, a 37% increase from 2008 and a new company record. The company sold 1.1 million VW brand cars, 158,900 Audis and 122,500 Skodas.

VW remains China’s top seller of passenger vehicles, although General Motors Co. is the leader in total volume, including commercial vehicles. Earlier this week GM reported a two-thirds jump in sales in China to a company record of 1.83 million units, including 1.06 million commercial vehicles from its minivehicle joint venture.

Ford Motor Co. says it posted a 44% increase in passenger and commercial vehicle sales to 440,600 units. This year the company expects to outpace the 8% increase in the market it is forecasting. Toyota Motor Corp. says its passenger vehicle sales rose 21% to 709,000 units in 2009. The company aims to sell 800,000 cars there this year.

The cost of lithium-ion batteries is not likely to drop sharply enough over the next decade to allow widespread adoption of electric vehicles without a major technology breakthrough, according to a study by Boston Consulting Group.

The authors told the Automotive Press Assn. in Detroit that battery-powered models, including range extenders, will probably account for 6% of the global market by 2020-far below the rosy forecasts of some carmakers. Hybrid vehicles could grab 20% of sales by then, KMPG says.

Expensive batteries could stretch the breakeven period for EVs in the U.S. to 15-19 years by 2020, BCG says-well beyond the three years most consumers expect. But government tax incentives of $7,500 would shrink that period to 3-5 years. If battery density is doubled or costs are halved from expected levels-or if oil hits $375 per barrel-a three-year payback time also would be possible.

General Motors Co. confirms it has put its Nexteer Automotive Inc. global steering unit up for sale and aims to complete a deal  “as soon as is practical.”

Just days after the automaker bought the Saginaw, Mich.-based unit back from former subsidiary Delphi Holdings LLP In early October, Automotive News reported GM was interested in selling it. The newspaper said GM bought the unit to ensure a steady supply of key parts but does not want to be back in the parts business.

AN said last month GM was negotiating a sale to Yubei Power Steering System Co. The newspaper, again citing unidentified Nexteer sources, said yesterday that the Chinese supplier remains the leading contender.

Nexteer develops and sells electric and hydraulic power steering systems, driveline components and steer-by-wire systems. The unit, which has 15 plants, six engineering centers and 6,200 employees worldwide, generated $2.1 billion of revenue in 2008-about half from GM.

Delphi tried for several years while it was in bankruptcy to find a buyer for the steering unit, but was hampered by tight credit markets and the auto industry slump.

Controversial Formula One CEO Bernie Ecclestone and Luxembourg-based private equity firm Genii Capital say they will make a bid for General Motors Co.’s Saab Automobile unit.

The surprise offer came a full year after GM put the Swedish brand up for sale and hours after the company closed bidding for Saab last night. It is unclear whether the Ecclestone-Genii group has yet submitted a bid or whether that would persuade GM to delay plans to wind down the unit. Saab’s board is slated to meet today. GM says an eleventh-hour rescue is unlikely despite pleas and demonstrations by Saab loyalists in Europe and the U.S.         Dutch supercar maker Spyker Cars NV says it submitted a fresh bid yesterday. Spyker’s earlier talks with GM broke down last month. News reports say two Swedish investor groups also are scrambling to nail down bids.

House Speaker Nancy Pelosi (D-Calif.), Transportation Secretary Ray LaHood, Labor Secretary Hilda Solis and a bevy of Congressional representatives plan to tour the floor of the North American International Auto Show on Monday and meet with the CEOs of the Big Three automakers.

But the White House insists President Obama, whose appearance during the show’s press preview days has been widely rumored, won’t attend, says the Detroit Free Press.

Lawmakers appear eager to kick the tires now that the federal government owns 60.8% of General Motors Co. and 9.9% of Chrysler Group LLC. The OEMs have promised to introduce advanced technologies and new vehicles that will help them repay taxpayers.

But Pelosi’s delegation may not spark a frenzy like the one caused last year by Sen. Bob Corker (R-Tenn.), an outspoken critic of federal aid to GM and Chrysler, who was mobbed by reporters as he toured the show.

General Motors Co. has formally launched the assembly of lithium-ion battery packs that will power the Chevrolet Volt plug-in sedan at a $43 million factory in Brownstown Township, Mich. The modules will be assembled using batteries supplied by Compact Power Inc., a unit of South Korea’s LG Chem Ltd.