According to an article by Leslie J. Allen for Automotive News, all signs indicate that whether or not pundits are ready to declare a recession officially underway, the auto industry is preparing for rough days ahead.

Both J.D. Power and Associates and the National Automobile Dealers Association are predicting sizable downturns in sales for the year with J.D. Power calling the number at 14.9 million and the NADA saying 15.7 million. In 2007 the industry moved 16.2 million units.

Automakers are taking major cost cutting steps in anticipation of lower profits with Ford offering buyouts to 8,000 hourly workers and Nissan putting two of its American assembly plants on four-day weeks. Chrysler trimmed five production shifts and 10,000 jobs while Toyota cut back production on both the Toyota Tundra pickup and the Sequoia SUV.

Although rate cuts by the Federal Reserve and more aggressive auto loan packages from banks backing away from mortgages have provided some relief, automakers are still lowering their expectations as consumers remain reluctant to tie themselves to major purchases and car payments.

At the New York auto show Ford CEO Alan Mulally, speaking to analysts, said, "No matter what, we'll keep doing what we have to do to structure ourselves to the lower demand." Other industry executives have echoed his sentiments while finding ways to trim their bottom line.