Automakers are expected to produce 2.93 million cars and trucks in North America during the first three months of 2010, up from 1.73 million in the year-earlier period, according to the Detroit Free Press.

The newspaper, which cites a forecast from Ward’s AutoInfoBank, says the increase reflects optimism that auto demand is gradually reviving. The swing is especially sharp because a year ago many automakers were shuttering plants for weeks at a time to shrink bloated inventories.

Ward’s says carmakers held an average 52-day supply of new vehicles at the end of 2009 vs. 92 days a year earlier. A supply of 60-65 days is considered ideal.

Toyota plans to hike North American output 113% to 318,100 vehicles in the quarter, the Free Press says. Ford and General Motors plan to more than double production, and Chrysler is boosting output by 92%.

Most forecasters predict U.S. auto sales of roughly 11.5 million-12 million units this year, compared with a 27-year low of 10.4 million in 2009. Even as unemployment keeps consumers wary, some will need to replace aging vehicles, analysts say.

Chrysler Group LLC plans to pay some suppliers quicker for expensive up-front engineering, design and development work on future models as part of a program to mend frayed supplier relations.

Chrysler purchasing chief Dan Knott tells Automotive News the new policies will be launched by the end of the month. He says the accelerated payments will focus particularly on interior components because they contain a large amount of brand-specific content.

Knott says the new policy will mostly apply to parts for upcoming compact and midsize vehicles on platforms designed by alliance partner Fiat SpA. Chrysler will begin introducing those vehicles in 2012 and expects volume to reach 700,000 vehicles by 2014, AN says.

Accelerated payments would include resolving submitted claims faster. Knott says that until recently it took Chrysler an average of 287 days from the time a supplier submitted a bill until the company agreed to pay. He says that time has shrunk to 105 days under a new process initiated late last year but needs to be reduced further.

The other element is reimbursing suppliers for a portion of their tooling investment at predetermined milestones. Suppliers now recoup those costs on a per-piece basis over the life of a vehicle program. If volumes fall below projected levels, suppliers can take a loss. AN says earlier and more predictable reimbursements can help suppliers manage their cash flow and reassure lenders of their creditworthiness to obtain much-needed financing.

Nick Reilly, CEO of General Motors Co.’s Adam Opel GmbH, says the reorganized unit needs to beef up its offerings with a minicar, a successor to its Combo van, a stronger lineup of hybrid and electric vehicles, and more fuel-efficient, low-emission engines.

He also says Opel needs export growth outside Europe, greater accountability for managers and less bureaucracy. Reilly plans to push authority for spending lower in the organization and reduce the amount of time spent in meetings and preparing reports by half.

Reilly says the company will continue to operate as Vauxhall in the U.K. and will use the Opel name in all other markets. He also told employees to avoid the “victim mentality” of blaming GM for all of Opel’s problems and to adopt a “winning” attitude.

General Motors Co. is seeking contract concessions from the United Auto Workers union for at least some of the five plants the company acquired in October from its former parts subsidiary Delphi Holding LLP, the Detroit Free Press reports.

The newspaper cites workers and a memo from a union local to its members. At union meetings in Saginaw, Mich., and Lockport, N.Y., UAW officials told workers GM is proposing givebacks that include wage freezes for production workers and a $3-per-hour pay cut for skilled trades workers, the Free Press says. Former Delphi plants near Grand Rapids, Mich., Kokomo, Ind., and Rochester, N.Y., also may face concession demands.

GM says the changes are needed to make the factories competitive. All five plants are covered by UAW contracts reached with Delphi during its bankruptcy that are less generous than GM’s UAW contract for assembly, stamping and powertrain plants.

GM has already put the Saginaw operation, now called Nexteer Automotive Inc., up for sale. Analysts tell the newspaper they expect the automaker to try to sell the other former Delphi plants. They note that labor concessions would make the factories more attractive to buyers.

Chrysler Group LLC is considering adding a new assembly plant in North America to build vehicles designed by its alliance partner Fiat SpA, according to Automotive News.

The newspaper quotes Scott Garberding, the company’s manufacturing chief, who says Chrysler is studying a number of options and unidentified sites for making Fiat-based models. He says building the vehicles in existing Chrysler factories also is a possibility. Garberding wouldn’t say when a decision is due.

Chrysler already is retooling its assembly plant in Toluca, Mexico, to begin producing the Fiat 500 minicar in the fourth quarter of this year. Fiat-based compact and midsize Chrysler vehicles are scheduled for 2012.

Buying or building a new assembly plant would seem an odd choice for Chrysler, which has been painfully shrinking its North American capacity through plant closings. Chrysler CEO Sergio Marchionne, who also heads Fiat, has chastised European automakers for failing to shrink capacity during the downturn.

Ford, Mazda and Chongqing Changan Automobile say they have no plans to break up their Chinese joint venture, disputing reports over the weekend by The Nikkei and The Wall Street Journal.

The publications said the venture would separate its two assembly plants by forming two ventures, one owned 50:50 by Changan and Ford, the other split 50:50 between Changan and Mazda.

Changan owns a 50% stake in the current venture, with Ford and Mazda owning 35% and 15%, respectively. Ford did say in December it was in talks with its partners about changing the Chinese venture’s structure.

Chrysler Group LLC is recalling nearly 24,200 cars, SUVs and pickup trucks to prevent potential brake failures by replacing the clip that fastens the brake booster input rod to the brake pedal arm.

The recall involves 2010 models of the Chrysler Sebring and Dodge Avenger midsize cars, Dodge Nitro SUV and Jeep Commander, Grand Cherokee and Liberty SUVs. The campaign also covers the 2009-2010 Dodge Ram big pickup.

The National Highway Traffic Safety Administration says some vehicles were built with defective retaining clips, and some Ram trucks were assembled with no clips. Either case can result in brakes that fail without warning. Chrysler notified Ram owners last month to have their vehicles inspected immediately.

French supplier Valeo SA has named Robert Charvier, its financial controller, to become CFO with responsibility for all the company’s financial functions. He will add responsibility for financial affairs and strategic operations from Vincent Marcel, who will become vice president for special projects.

Charvier joined Valeo in 1999 from French chemical company Rhodia SA. Valeo’s move to streamline finance operations follows the consolidation last July of 11 divisions into four business groups: comfort and detection systems, powertrain systems, thermal systems and visibility systems.