Automakers feeling the economic heat

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American automotive companies aren't the only ones feeling the heat of reduced demand for new vehicles. At the end of 2008, South Korean automaker Hyundai Motor Co. began cutting worker shifts and reducing output in response to low product demand, both domestically and at factories abroad.

Hyundai is the latest in a growing number of automakers who are flailing in the wake of poor Japanese, American, Indian, and European economies and subpar demand for autos. Nissan Motor Co., Kia Motors and other companies worldwide are cutting jobs and scaling back output. Even ever-popular Toyota Motor Corp. and American Honda Motor Company are slowing American production and putting off plant expansions.

In a 2008 feature from The New York Times, it was reported that Toyota Tundra truck factory workers were alternating between classes on how to handle tools safely, fostering relationships with colleagues of varying backgrounds, and decidedly non-automotive work, such as cleaning local parks and feeding the hungry in December 2008. Most workers said that they'd rather be building trucks, but sales have slumped.

Financial analysts say that depressing auto sales could continue through 2010, and there's little chance we'll see improvement before then, offers Automotive News.

Despite this low demand, there doesn't appear to be any "wheeling and dealing" on the part of domestic dealerships to improve customer interest in products. In addition, it seems potential buyers are still employing a "wait and see" attitude because many feel gas prices may not remain low for too long -- affecting future auto purchases.