Carmakers gear up for long slowdown

By Kim Yeon-hee and Peter Dinkloh

SEOUL/FRANKFURT (Reuters) - Car and truck makers around the world signalled fresh production cuts and job losses on Wednesday with some warning the slump in demand may extend until 2010.

"It would be wrong to assume that this economic downturn is short-term in nature and will be over in only six months," said Hakan Samuelsson, chief executive of German industrial group MAN.

MAN plans to cut output by 30 percent at its core truck making business next year.

The global financial crisis is making consumers increasingly reluctant to part with cash and lenders unwilling to offer credit, causing carmakers across the world to struggle to find buyers to keep their production lines running.

Matthias Wissmann, president of VDA auto industry association, told Reuters that new vehicle registrations could recover by 2010 but sales would fall to post-reunification lows in 2009.

"The situation on global passenger car markets is dramatic," he said.

NOVEMBER SALES PLUNGE

All major automakers have reported double-digit declines for U.S. auto sales in November, hurt by the plunge in consumer confidence brought on by the turmoil in the financial markets and a weakening U.S. economy.