Robert Bosch GmbH says it lost at least €1.1 billion pretax in 2009, and perhaps as much as €1.5 billion, as revenue plunged 16% to €38 billion. It was the company’s first full-year loss since 1945.

Bosch’s automotive technology business generated €21.7 billion, down 18%, in 2009. But the company predicts strong growth in China and India this year, and it expects a significant upturn in vehicle production in North America.

To cut costs and conserve cash, Bosch eliminated 11,000 jobs last year, leaving 271,000 employees. The company also sold a large portion of its car radio business and its entire North American brake operation.

Revenues began to recover in mid-2009, led by strong growth in Asia. This year the company expects to recover half the revenue it lost in 2009 and achieve breakeven for the full year. Bosch says it will take until 2012 for its automotive business to return to the €28 billion peak achieved in 2007.

Bosch anticipates full-year sales growth of 8% this year, including a 10% increase for its automotive unit. The company says car and commercial vehicle production in Germany should increase slightly this year, despite the end of the government’s scrappage incentive last September. That program was credited with boosting year-on-year sales of passenger vehicles by 23% in Germany in 2009.

The French government had told the EU that its 15% ownership of Renault SA gives it the right to “act with vigilance” in reviewing the company’s production plans, reports Agence France Presse.

Two weeks ago French President Nicolas Sarkozy publicly criticized Renault for considering a plan to produce its next-generation Clio small car in Turkey. Within days Renault announced it would shift existing Clio production in Slovenia to its plant in Flins, France. EU Competition Commissioner Neelie Kroes promptly ordered an investigation, noting she opposes “knee-jerk protectionism.”

An unidentified source tells AFP that the French government did not pressure Renault for any “deal involving the relocation of activity in France.” Another government spokesman tells the news agency that the EU has the right to intervene only if France blocks the import of foreign-built vehicles.

Toyota Motor Corp. is recalling an additional 1.1 million vehicles in the U.S. to fix a floor mat problem that could cause the accelerator pedal to jam. It’s the third recall involving accelerator problems in four months.

Last October Toyota began recalling 4.3 million Toyota and Lexus vehicles to remedy the problem by replacing the mats, modifying the accelerator pedal, installing an accelerator interlock device and in some cases modifying the floor pan. In a letter to U.S. safety officials, Toyota says it is expanding that recall—its biggest ever in the U.S.—to include more than 1 million 2009-2010 Corolla, Matrix, Venza and Pontiac Vibe cars and 2008-2010 Highlander SUVs.

Last week Toyota announced a second recall involving 2.3 million U.S. vehicles with an unrelated accelerator mechanical problem that also could cause the pedal to stick. About 1.7 million of those vehicles were involved in the earlier recall. Toyota also suspended production of eight models included in the second recall, which account for about two-thirds of Toyota brand sales in the U.S. Yesterday it said it also asked its dealers in Canada to stop selling the affected models. The company said yesterday it is beginning to ship replacement pedal mechanisms to its North American plants for installation in new vehicles. Toyota continues to develop a modified pedal system to retrofit cars already on the road.

Analysts say Toyota is trying to show its concern for the safety of its customers. But they also say that the high volume and repeated campaigns is badly eroding the company’s image for quality.

Organizers plan to stage demonstrations at Fiat dealerships in 30 Italian cities today to protest as “anti-national” the company’s plan to idle all production for two weeks, notes Automotive News Europe.

Giovane Italia, a branch of Italy’s ruling Popolo dell Liberta party, says it organized the rallies to protest next month’s production cuts and the impending shutdown of Fiat’s plant in Termini Imerese next year. The group also complains that Fiat—which announced a month ago it will invest more than €8 billion to expand production capacity in Italy by 50% over the next two years—is moving vehicle production out of Italy.

Fiat says next month’s production cuts are necessary because new-car orders have dropped below year-ago depressed levels. The Italian Trade newspaper InterAutoNews estimates that Italy’s year-over-year car sales for January will fall 12% to 122,000 units. Fiat has estimated the market will shrink by 2%-3% this month and by at least 12% this year.

Industry minister Claudio Scajola says Fiat’s planned production halt is “inopportune” and “not well-timed.” Observers say the stoppage was announced in part to pressure the Italian government into reinstating scrappage incentives that boosted demand for small cars last year. The government will discuss incentives tomorrow.

Germany’s economy, which shrank by 5% last year, will expand by 1.4%, the government says. The forecast compares to 1.5% and 1.6% growth predicted by the International Monetary Fund and Bundesbank, respectively.

The Munich-based Ifo Institute reports that its index of business confidence reached an 18-month high of 95.8 this month. It was at 94.6 in December.

But Economy Minister Rainer Bruederle cautions that high unemployment and weak consumer demand will make Germany’s recovery “slow and painful.”

Germany’s exports are expected to grow by 5.1% this year after plunging nearly 15% in 2009. But the government says consumer spending, which expanded by 0.4% in 2009, will contract by 0.5% this year. The ministry also predicts unemployment will grow by 400,000 to 3.8 million people in 2010.

Zhejiang Geely Holding Group Co. has filed plans with Chinese regulators to build an assembly plant near Beijing to produce as many as 300,000 Volvos per year, Reuters reports.

It isn’t clear when the plant, which would nearly double Volvo’s global production capacity, would open. China media reports speculate that the first car to be produced there will be the Volvo XC60 crossover.

Other reports say Geely expects to sign a final agreement with Ford Motor Co. in February to buy Volvo Cars and complete the deal by May. The sale price is expected to be between €1.1 billion and €1.4 billion.

Still unclear is how the deal will be structured and financed. Reuters says Geely may set up a separate company that would be 51% owned by foreign investors and Geely Holdings.

Geely has promised to maintain Volvo’s production, product development and corporate headquarters in Sweden. But Volvo’s unions remain worried about Geely’s long-term plans for the company. This week they sent a delegation to Shanghai in hopes of learning more about Volvo’s future financial structure.

VW Group Chairman Martin Winterkorn tells Autocar that Porsche may add a small mid-engine sports car derived from the Audi R4 mid-engine sports car due in 2011. He also says Porsche could add a small SUV to its lineup.

The new sports car, being described within the company as “the new 356,” would have a Porsche-developed turbocharged engine producing about 250 hp. Although it would share the R4 chassis and probably an Audi transmission, the new Porsche would be significantly different in look and performance, according to Autocar. The magazine adds that the R4 is due in June 2011, but the Porsche variant would not arrive until late 2012 at a base price of about €38,000.

Asked about the chances of the baby Porsche going into production, Winterkorn said, “Let’s just say we do not usually waste our effort.”

Industry analysts continue to question whether Spyker Cars NV, which is buying Saab Automobile AB from General Motors Co. for €400 million, will find enough resources to finance a successful turnaround for the Swedish brand.

Spyker has said it would adopt the business model for Saab developed by previous bidder Koenigsegg Group. That plan predicted Saab would become profitable in 2012 on annual sales of 100,000 units.

But last year Saab’s sales slumped to 40,000 from about 93,000 in 2008. The company, which reportedly lost €2.6 billion over the past 10 years, had an estimated operating loss of €400 million in 2009.

Analysts wonder how Spyker, which produces only a few dozen cars per year, can cope with Saab-related issues of international currency fluctuations, poor sales, high labor costs, chronic losses and future product development costs.

Spyker CEO Victor Muller expects the company to receive a €400 million loan from the European Investment Bank. Spyker also will get €150 million in financing from the GEM Global Yield Fund. Skeptics suggest that the difficulties Spyker had in buying Saab are miniscule compared to the challenges of operating the company.

“Marginal players will continue to be marginalized,” opines Fiat SpA CEO Sergio Marchionne, adding, “We cannot build on hopes and dreams.”

Motors Liquidation Co., which holds the assets General Motors Co. left behind in bankruptcy, has filed a lawsuit in New York City claiming that BMW AG reneged on a contract to buy GM-supplied transmissions through 2015.

The lawsuit says BMW signed a 10-year deal in 2004 to buy transmissions made at a GM plant in Strasbourg, France. BMW says GM failed to comply with terms of the contract that required the American company to implement technology BMW wanted.

Motors Liquidation is trying to sell the Strasbourg plant, which would fetch a higher price if BMW continues to buy its transmissions.