Things are looking up for the global auto industry, one of the worst hit sectors during the financial crisis.

Once-suffering Toyota is set to report better-than-expected profits this quarter and expand operations, other Asian automakers are also on track to make money, and auto sales are growing in most markets.

Uh oh. Here we go again.

Merely hearing the word "sub-prime" is enough to make you squirm. But, put it in the same sentence as "automaker" and suddenly you want to puke, or sell all of your equity investments.

Bloomberg scored an interview with Ford Motor's CFO, Lewis Booth. A few quick takeaways: The worst is probably behind the auto industry, though it all depends on the economy; despite a profitable 2009, don't expect a dividend anytime soon; and the same goes for an investment-grade credit rating.

If you look at Ford's balance sheet, it's a bit funny that someone would even ask about the last two things. Last year was its first annual profit in three years and, in order to avoid falling into bankruptcy like General Motors and Chrysler, Ford borrowed $23 billion in late 2006.

Topping off a week filled with positive news from General Motors, sales of new vehicles are showing marked improvement this month. That could fuel a faster recovery of the auto company and be a sign of an improving economy, as long as the rebound doesn't rely solely on incentives from the industry. If sustainable, the improvement could even fuel consumer confidence, creating a virtuous cycle of growth building on growth.

Still, half a month's data isn't a lot to hang your hat on. Just don't tell that to JD Power and Associates.

Are Toyota's problems with its gas pedals a blow to the long-vaunted Japanese car makers and a victory for the American car makers?  Some pundits seem to think so.

In fact, several press reports are now suggesting Toyota had been sacrificing quality for quantity for a number of years. (Full disclosure: Several days before the recall was announced, I purchased a Toyota Avalon. Great timing, huh?)