Late yesterday, Toyota Motor (TM: sentiment, chart, options) cut its 2008 worldwide group-sales target. The foreign automaker forecast sales for the year in the lower 9.5-million-unit range, down from the previous goal of 9.85 million cars. TM's warning was born of an unexpected steep decline in demand for new vehicles in the U.S. market thanks to rising gas prices and the housing slump. TM has managed to benefit from the shift to smaller cars (away from SUVs and trucks), as its Prius hybrid is one of the most-sought vehicles. That said, TM can not shake off the effects of the credit crunch.

TM announced that it will stop production of its Tundra pickup and Sequoia SUV production starting August 8 and will restart the production in November. The Tundra will now be built only in Texas starting in Spring 2009 it is currently produced in Indiana and Texas. Earlier this month, TM announced that the Prius will be built in America by late 2010, and it will suspend the production of its larger, less fuel-efficient vehicles.

On a totally, 100% different note ... anyone see the trailer for the Watchmen movie? Awesome ... potentially.