The sluggish economy is expected to improve by fall, but assemblers remain skeptical.
Last year, many manufacturers experienced blockbuster sales and unprecedented growth. For instance, 2000 was a record year for automobile and light truck sales, with 17.2 million light vehicles sold in the United States. But, after vehicle sales slowed later in the year, inventories started to mount. Automakers and their suppliers were forced to reduce production to cut stockpiles. That helped set off a dramatic course of events that culminated with the bursting of the booming economy's bubble.