If you're seeing fluid leaking from the front axle area of a 1998 Chevy Malibu, it's almost certainly not transmission fluid. The most likely culprits are:
* Power Steering Fluid: Power steering systems use fluid, and leaks can occur near the rack and pinion, which is often located near the front axle. Power steering fluid is typically reddish or clear.
* Differential Fluid: The front differential (if equipped with one; some FWD cars have a transaxle) contains gear oil, usually a darker color. A leak here would be closer to the axle itself.
* CV Joint Boot: Tears in the CV joint boots (rubber coverings on the constant velocity joints of the half-shafts) allow grease to leak out. This grease is typically a thick, dark gray or black.
To determine what's leaking:
1. Identify the fluid: Look at the color and consistency of the fluid. Take a sample if possible.
2. Locate the leak: Pinpoint the exact source of the leak. This will help narrow down the possibilities.
3. Check fluid levels: Check your power steering fluid, and if possible, your differential fluid level. (Accessing the differential may require some mechanical knowledge).
It's crucial to have a mechanic diagnose and repair the leak promptly. Driving with low power steering or differential fluid can cause significant damage to those components. A leaking CV joint boot will eventually damage the CV joint itself, requiring a costly repair.