October seems to have been a good month for consumer spending. Unemployment is holding consumers back, but it isn't keeping wallets clamped shut.

A Bloomberg survey reveals that purchases grew 0.5% last month, based on the thoughts of 61 economists. The U.S. Department of Commerce is releasing its report on Wednesday. In advance of this news, Bloomberg's survey suggests that there are signs of slight improvement.

American auto maker Ford Motor (NYSE: F) gave investors a reason to smile this morning when it posted a surprising $1 billion profit for its third quarter.

Going into this morning's earnings release, analysts had expected to see the Dearborn, Michigan-based auto manufacturer to lose 12 cents per share. But Ford had other ideas, posting a profit of 29 cents per share, or $997 million.

China has taken its first major step into the U.S. car market as General Motors announced it had finalized a deal to sell off its Hummer truck brand to Chinese auto manufacturer Sichuan Tengzhong Heavy Industrial Machinery.

Under the deal, GM will continue to make the trucks no later than 2010. While a deal has been reached, it is still going to be up to Chinese regulators to approve the deal and decide if the brand can be profitable and fit into the country's overall national strategy to improve energy efficiency.

It should not come as too big of a surprise, but American auto maker Ford Motor (NYSE: F) announced today that its sales fell by 5.1% in September.

Following this summer's widely popular "cash for clunkers" program, it was some what expected that demand would weaken during September as so many people had just recently purchased new cars to take advantage of the government program.

On Wednesday, Chrysler CEO Sergio Marchionne announced that he has designed a five-year plan for the automaker (Wall Street Journal, subscription required). Marchionne believes the restructuring will be slow initially, but should improve "significantly" next year.

We should receive the plan by the end of November, and Chrysler will start reporting its quarterly results by the end of the year. Marchionne stated, "We are going to become a normal reporter in the U.S. hopefully by the end of 2009. ... You will see numbers like you see for everyone else." One can only assume that this is one of the "whole pile of surprises" Marchionne promised back in June when Fiat took over Chrysler.

The General Motors' board is starting its two-day meeting today, and it is believed that the company is going to decide what will happen to the German Opel automobile unit. There are other topics to be discussed, including a new marketing campaign and preparation for a public offering of stock so the automaker can repay the U.S. taxpayers.

Nevertheless, the major news will be the company's decision about Opel -- what should General Motors do? Is it smart for the company to give up a portion of its market share in Europe in order to stabilize American sales? Reuters examined several scenarios General Motors might face.

Even with the cash-for-clunkers program in full effect, demand for new automobiles is the lowest it's been in years. This has heightened competition among automakers, who are being forced to both improve their products and discount their prices. Consumers in the market for a new 2010 vehicle may be treated to a discount.

Toyota Motor (NYSE: TM), for example, plans to introduce a less expensive Prius, and the 2010 Nissan (OTC: NSANY) Sentra will see its sticker price drop by anywhere from $130 to $1,080, based on the features the buyer opts for. Other vehicles that will hit the showroom floors at a discount include the Mercedes-Benz E350 mid sized sedan and the Lexus RX 350, discounted by $3,300 and $700, respectively.

The government's "cash for clunkers" has been far more popular than anyone thought, prompting General Motors to boost production at several factories to keep up with demand.

While not everyone is so convinced that the "cash for clunkers" program is good for the economy, there is no doubt that the big American car makers are enjoying the benefits. Five days ago I wrote about the decision by Ford Motor Company (NYSE: F) to boost production by 15% above its prior estimates, and today General Motors announced it will raising output and bringing back employees that it had been forced to lay off.

AK Steel Holding Corporation (NYSE: AKS) is due to report earnings tomorrow before the market opens, and the company is expected to post another quarterly loss.

The current recession has been tough on steel makers, and Ohio based AK Steel is no exception. The company has been forced to lower prices and lay off workers in the wake of slumping demand for its steel products.

I found an interesting slideshow over on U.S. News & World Report that takes a look at the cars that have been hurt the most by the recession. I was not surprised to see the likes of Chrysler, Dodge, Saturn, and Chevrolet on the list -- these brands have a good deal of problems. However, I was very surprised to see Toyota (TM) included in the list. This is Toyota folks, the car company that all car companies should emulate - right? Wrong. It appears that the car giant didn't expect the Toyota Tundra pickup to drag on sales as much as it has, which has dragged sales down. If there is one thing that American automakers know how to do, it is to build big, gas-sucking, diesel-belching, trucks. So don't tread in our realm, Toyota!

Reportedly, a bankruptcy judge has given General Motors (OTC: GMGMQ) the okay to sell a majority of its assets to a new company. This move could open the path for General Motors to "quickly emerge from bankruptcy protection," the AP wrote. U.S. Judge Robert Gerber said in his ruling late Sunday that the sale "was in the best interests of both GM and its creditors," who would get nothing otherwise.

In his ruling, Gerber wrote, "As nobody can seriously dispute, the only alternative to an immediate sale is liquidation - a disastrous result for GM's creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates."

Yesterday, automotive parts supplier Lear (NYSE: LEA) announced that it is preparing to file for Chapter 11 bankruptcy protection. The company has also lined up financing to fund operations while it is under court protection.

LEA's subsidiaries outside of the United States and Canada will not be a part of the bankruptcy filing. According to the company, its "operations outside the United States and Canada are well-capitalized, well-positioned and have a strong backlog of new business."

Auto sales continued to drop in June, but we are starting to see signs that sales may be beginning to stabilize a bit.

The auto industry is still in deep trouble. It is going to take a while before things get back to normal, but before things can even start to improve, they have to stop worsening, and that's what may be happening.

The Energy Department is set to lend money to Ford (NYSE: F), Tesla, and Nissan (NASDAQ: NSANY), according to the Associated Press. The report cites anonymous sources, with the official announcement set for today in Dearborn, Michigan.

Reportedly, Ford has asked to receive $5 billion in loans by 2011, although the sources were not certain on how much money the automaker would receive. Nissan's requested amount was undisclosed and Tesla has reportedly asked for $450 million. The loan program the automakers are trying to tap into was approved by Congress last year in order to help car companies and suppliers develop green vehicles and components (such as the advanced battery) and help automakers meet the new fuel-efficiency standards of 35 miles per gallon by 2020.

This morning, General Motors (GMGMQ) -- or is it Government Motors? -- announced that it will sell its Saab unit to a consortium led by Koenigsegg Automotive AB. The purchaser is a luxury carmaker, which produces roughly 12 custom-made models each year.

In a memo of understanding, GM stated that the sale will include a $600 million funding commitment from the European Investment Bank -- which is guaranteed by the Swedish government. The sale is believed to be completed by the end of the third quarter.