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Chrysler, which emerged from bankruptcy owned by its unions, Fiat, and the American taxpayers, is expected to announce its October sales surged 40% year over year.

The U.S. automaker reported a $1.7 billion profit on strong demand for its revamped line of products, despite a lackluster economy. Continued growth at its Ford Credit finance unit also helped push profits higher.

Riding high on improved demand for its vehicles, analysts expect Ford to post a record third-quarter profit of $1.37 billion tomorrow. The automaker's current third-quarter earnings record is $1.13 billion, set in 1997.

Toyota Motor is issuing another recall -- this time it involves 740,000 cars and sports-utility vehicles in the U.S. and nearly 600,000 units in Japan to repair a seal on the vehicles' brake master cylinder that may leak fluid and impair braking performance.

Honda unveiled its new hybrid Fit subcompact in Tokyo Friday. At a starting price of around $19,160, it is cheaper than any other hybrid vehicle in Japan -- including Toyota's popular Prius.

GM is expected to announce the production of a new compact car for Buick -- the Verano. The upscale sedan will be assembled in a former Pontiac plant in Orion Township, Mich., helping to restore 1,200 jobs at the facility.

Saab Automobile signed a deal to begin using BMW engines as the struggling Swedish automaker seeks to restore its profitability and prestige.

In a bid to better compete against European and Japanese luxury makes, Ford reportedly may seek to reduce the number of Lincoln dealerships in the U.S. Nearly 1,200 dealers sell Lincolns, five times more than sell Toyota's Lexus nameplate, the nation's leading luxury brand.

Eager for fresh products to sell to consumers, Chrysler dealers are vying for about 165 Fiat franchises. Fiat took over management of Chrysler last year as the carmaker was heading into bankruptcy.

Update: The "Cash for Clunkers" program was suspended late today. As the "cash for clunkers" program kicked into high gear this week and dealers started accepting trade-ins, automakers heralded the new effort as a way to boost sales, national energy security, and the environment in one fell...