Some of the smart money that tracks the car industry thinks total sales in the US could go as low as 14.5 million to 15 million vehicles next year, down from 16 million this year.

Investors like Wilbur Ross and former Chrysler president Thomas Stallkamp see car sales in America hitting their worst year in the last 15. According to Reuters, "Stallkamp, a partner at private equity firm Ripplewood Holdings, which owns several auto parts makers, said the market could slump to 14.5 million, the lowest level since 1993."

High fuel prices and a falling housing market are likely to cause a large drop in demand for vehicles.

It would be hard to underestimate the impact of such a drop on Detroit and the largest Japanese firms. It had been anticipated that GM (NYSE: GM) and Ford (NYSE: F) might get their North American operations back into the black next year, helped by favorable UAW contracts.

If pessimistic forecasts hold true, though, 2008 could be awful for Detroit.

Douglas A. McIntyre is an editor at 247wallst.com.

According to Business Week, Ford (NYSE: F) brands Jaguar and Land Rover have captured the interest of Indian private conglomerate Tata Group, owners of Tata Motors (NYSE: TTM). India's largest car manufacturer is reported considering a bid for the legendary British brands, hoping to market them internationally and reduce its dependence on domestic sales. The well-heeled Tata Group includes Tata Steel, the world's fifth largest steel company, which recently concluded a $12 billion takeover of Britian's Corus Steel.


Tata Group owns 96 companies, employs over two million people and has a market cap of over $50 billion. Tata Motors has been building cars since 1945, with revenues of $5.5 billion in 2006. In 2004, it acquired Daewoo Commercial Vehicle Company, and owns a stake in Spanish bus manufacturer Hispano Carrocera. The company has stated its intent to bring to market a $2,500 car to emerging markets by next year.

Buying Jaguar and Land Rover would do more for Tata than give it international access; it could lend the company the credibility to gain immediate acceptance in the burgeoning vehicle market worldwide.

Reader's Digest is a true American success story. Founded in 1922, the magazine's first print run was 5,000 -- and the retail price was 25 cents. Eventually, the magazine would become the biggest in the world.

But nothing lasts forever. In the case of Reader's Digest, the brand started to get crusty and its financial performance suffered as a result.

Now the company has decided to go private in a $1.6 billion deal. The lead investor is Ripplewood Holdings, which has lots of experience in the media world.

True, Reader's Digest has a diversified set of media assets, such as videos, books, music and so on. However, the company was particularly late in terms of moving onto the Net and in many ways still seems old-fashioned and a bit crusty.

As a result, the price tag is a tepid $17 per share. This is only an 8% premium.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.