Car makers that had seemed in a strong position to weather the global economic storm have publicly admitted a 'crisis' as sales continue to slow down.
BMW's boss Norbert Reithofer yesterday described the situation to Germany's Spiegel magazine as "the worst crisis BMW has faced in its history".
Despite the slow sales, it is the German giant's reliance on leasing that has put it in a very vulnerable position.
Meanwhile Daimler boss Deiter Zetsche assessed the current conditions as "the worst crisis since World War II".
Martin Winterkorn, boss of Volkswagen, told reporters: "We have never before seen this kind of crisis" adding that "difficult cuts" maybe unavoidable.
But it's not just the German's who are talking openly about serious problems.
Previously stable Japanese giant manufacturers like Honda and Toyota are also publicly airing grave concerns.
Toyota's vice president Mitsuo Kinoshita described the situations as "an emergency of a magnitude we have never seen before".
Honda has also admitted that it will be "very difficult" to meets its full-year profit forecast and is scaling back production by some 40,000 units in Japan.
Industry experts say the most flexible car makers, which can adjust quickly to falling demand, will be best placed in the months to come.