Several manufacturers have been aggressively cutting costs and jobs.

"If manufacturers cut another 10 percent of production in the first quarter, that may be enough to tip the economy into a recession," he said.

And manufacturers are keeping their suggested list prices flat, or even cutting them.

During the lean years of 1990 and 1991, manufacturers radically cut costs.

Meanwhile, domestic manufacturers cut their defects from 162 per 100 cars in 1989 to 151.

But one thing is clear: 18,500 people were willing to risk buying the vehicle when the manufacturer cut the price by $2,000.

In February, manufacturers cut the number of workers on their payrolls for the 43rd consecutive month.

It can also force manufacturers to cut prices at home because of competition from cheap imports.

But if consumption remains weak, that additional stock of goods could force manufacturers to cut back on production in coming months.

And manufacturers cut back production sufficiently to brake the growth of inventories.