We knew the auto industry was in bad shape and it didn't take long to extend its poisoned-tipped tentacles into the world's automotive juggernaut. In August came news that the Japanese automaker had cut its sales forecast for 2008 from 10.4 million vehicles to 9.7 million. A Japanese newspaper, though, says it expects Toyota to only sell 8.3 million for the year. If true, it would be the company's first year over year sales decline in a decade. The Nikkei Daily (subscription required) doesn't back up its prediction with any sources, but we'll know how close to the truth they get come in January when Toyota announces official sales numbers.


The latest rumors regarding Cerberus-owned Chrysler and its possible sale point to the breakup of Chrysler's assets, and in particular its brands. General Motors may be interested in bits and pieces of its cross-town rival, but perhaps not the entire automaker. Jeep is considered Chrysler's most valuable asset and was purchased by the automaker from Renault in the '80s, around the same time that AMC ceased to exist. A similar scenario may put Jeep back in the hands of Renault. This purchase could allow the French automaker an easier entry back into the U.S. market with dealerships and excess production capacity leftover from Chrysler. General Motors main interests are rumored to be the minivan line along with some production sites, including the plant in Mexico that assembles Dodge Ram trucks. In exchange for the pieces of Chrysler that GM is interested in, the automaker could fork over its remaining 49-percent stake in GMAC to Cerberus. It's clear that all companies involved are still in negotiations, and it's completely possible that nothing changes hands at all. Round 'n round we go...

Jay Leno is a big player on the antique car auction circuit, and his loaded airport hanger in Burbank is proof that the Tonight Show host has purchased his fair share of rare rides. One such vehicle was a 1931 Model J Duesenberg that he aquired from Manhattan's Windsor Garage back in 2005. The car was owned by the now deceased Macy's heir John Strauss, and his estate is suing Leno because they contend the garage sold it to him illegally. The garage states that Mr. Strauss, who suffered from dementia, owed over $29,000 in parking fees, giving them the right to sell the Duesenberg and a 1930 Rolls Royce that was purchased by another auctioneer. The Srauss estate says the garage was paid hundreds of thousands of dollars for parking over the years, and $29,000 was drop in the bucket. We don't know all the legal issues (like title transfer of the Deuse) surrounding the suit between the Strauss estate and Jay Leno, but it seems as though the Windsor Garage would be a better target for the lawsuit. They did, after all, sell the vehicle that they were paid to care for. Then again, we have no idea what the laws are in Manhattan concerning garages that aren't paid and the delinquent cars that sit on their property, either.
Rumors of Ford selling part or all of its 33.4% share in Mazda have picked up steam this week since we first reported on them over the weekend, and analysts in Tokyo think a deal that "clears a cloud over Mazda" is imminent. Nikkei English News also reported that Ford has asked Japanese supplier Denso to purchase part of its stake in Mazda, but the Japanese news agency didn't claim any sources and Denso has declined comment in the matter. Most are guessing that potential buyers would include Mazda itself, as well as a number of companies over which the risk of investment could be spread, while Ford would likely hold on to at least some of its stake in the brand but lose its controlling share of the company. Management from Ford and Mazda are largely silent regarding any possible deal, but Mazda spokesman Ken Haruki said that "nothing has been decided," which doesn't sound like much of a denial. There is no question that Ford needs cash to get through these turbulent economic times, and its share of Mazda is currently worth $1.33 billion based on Wednesday's share price, which itself has dropped 56% in the past year. The ownership status of Mazda is likely worth more than $1.33 billion, though, and anyone taking that title from Ford will surely have to pay a premium. Even if Ford sells some or all of its stake in Mazda, the two companies would continue to share platforms, powertrains and components for a long, long time. That will help Ford continue to enjoy economies of scale while giving Mazda good hardware without the massive development costs.


J.D. Power and Associates, the influential industry tracking firm, warned that the global auto market may "outright collapse" due to the lack of available credit and the general global economic conditions in 2009. According to the company, credit market restructuring, fewer leasing options, and declining owner equity are adding additional stress to an already burdened market. Don't turn to the automotive markets in China, Europe, or India either -- they are expected to slow next year as well. Much of the domestic sales decline is attributed to consumers delaying vehicle purchases (their studies indicate people are keeping their vehicles four months longer in 2008, compared to 2007). Other contributing factors are the drop in leasing activity, and the loss of fleet sales (down to 2.8 million from 3.3 million last year). While the automotive sales decline over the summer made this a buyer's market, willing consumers who venture into showrooms today are finding dealerships eager to sell, but banks aversive about lending.
