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.

The world's largest auto maker, Toyota Motor Corp. (NYSE: TM) announced Tuesday that is was about to issue the biggest recall in the company's history, as problems with some floor mats has led to numerous accidents and at least five deaths.

The recall involves eight different models of Toyota and Lexus vehicles manufactured and sold in the U.S. over the past six years, and include the popular Prius hybrid. Apparently, there is a problem with the driver side floor mats that result in the mats coming loose and jamming down the accelerator.

Data analysis of the government's Cash for Clunkers program is beginning to surface. That analysis, coupled with some not too impressive projections, is beginning to paint a murky, if not dismal, picture of the auto industry's future. I read an excellent break down of the data, which was provided by Michelle Krebs via Edmunds Automotive Network.

First off, some analysts are claiming that while the Clunkers program did boost auto sales for the month of August, those sales were most likely moved forward on the calendar by auto buyers who were already contemplating a purchase. The supposition is that these consumers simply bought earlier to reap their government vouchers (you're welcome). Dismal September sales numbers are being projected for auto makers.

It should not come as any surprise, but Ford Motor Company (NYSE: F) announced today that August saw an industry wide increase in auto sales.

Of course, the increase in sales can be attributed to the highly popular "cash for clunkers" program that brought auto buyers out in huge numbers. The August increase is the first time auto sales have moved higher in over 2 years.

If you are getting tired of reading all the news on the government's "cash for clunkers" program, don't worry... the Obama administration announced this afternoon that the popular incentive program will come to an end this Monday.

There has been a lot of controversy over the program as of late, but one thing is for sure, car buyers have definitely been taking advantage of the program since it launched last month.

As we noted yesterday, a lot of auto dealers have decided to pull out of the popular "cash for clunkers" program. This comes as a result of lack of payment by the government, and today General Motors said that it will start to advance dealers the cash that they are due from the government related to the program.

Today's announcement by General Motors marks a change in company policy, which had earlier stated that it was not in a position to come to the aid of its dealers.

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.

With so many people rushing out to take advantage of the "cash for clunkers" program, American auto maker Ford Motor (NYSE: F) has announced that it will be significantly boosting fourth quarter production.

There has been a lot of debate over whether or not the "cash for clunkers" program is good for the economy, but there is little debate as to its popularity. The program offers up to a $4,500 incentive for people exchanging their old gas guzzlers in for newer, more fuel efficient vehicles, and has been much more popular than anyone could have imagined.

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!

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 'cash for-clunkers' cash payment is now likely to receive Congressional approval, something yours truly didn't think would occur six months ago.

Dueling versions of the bill that would grant a voucher worth $3,500-$4,500 to consumers who trade-in their gas-guzzling cars and trucks for more fuel-efficient vehicles are winding themselves through Congress. The House version passed 298-119, Bloomberg News reported. A vote on the Senate version is expected soon. In a nutshell, car purchases get $4,500 for a vehicle that improves mileage by at least 10 miles per gallon, $3,500 if the new vehicle ups mileage by at least four miles per gallon.

If you compare last month to May 2008, then Ford Motor Company (NYSE: F) looks pretty shaky: the American auto maker posted a 24% dip in sales year over year. However, the picture starts to look a lot better once you compare April and May of this year.

All in all, Ford sold 161,197 vehicles last month in the U.S.. Yes, this was 24% off the pace it set last year at this time, but it does mark a pretty impressive 20% jump over its numbers during the previous month, as the company was able to take slight advantage of its competitors' financial woes.

There has been a lot of debate over the past couple of months over General Motors Corporation (NYSE: GM). What would be best for the company? Government bailout money to help avoid bankruptcy, or should we allow the company to go through bankruptcy proceedings?

If you are on the side of the argument that thinks GM should enter bankruptcy, well, you are about to get exactly that. According to Bloomberg, General Motors plans to file for Chapter 11 bankruptcy on June 1.

The nation and the global economy remain in the grips of a pronounced recession, and a universal economic rule has been 'belt-tighten and eliminate unnecessary expenses.'

Still, as the comic character Pogo reminds us, another universal economic rule is 'Thems that has, gets.'

There's a great post on the lean manufacturing blog Evolving Excellence about the auto industry and what it might really take to fix it. Bottom line -- Evolving Excellence says more dealer cuts needed so General Motors Corporation (NYS: GM) and Ford Motor Company (NYS: F) will have to take more inventory write downs and buyout more dealers. Even with these reduced dealer levels, the U.S. automakers still only sell roughly one-half as many cars per dealer as their Japanese counterparts.