US automakers face tough road as June sales plummet

Was reading this article that stated:

"Automakers hit more bumps in the road in June as US sales fell precipitously, and manufacturers failed to adapt to a shift in demand to more fuel-efficient cars, company reports showed Tuesday.

Overall sales were down 13 percent year-to-year, according to market research firm Autodata.

"The four-dollar (per gallon) gasoline, the recession in housing and a collapse in consumer confidence has kept people sitting on their hands," said David Healy, analyst at Burnham Securities."

With the current Credit Crunch, credit approval is stricter, people's spending power has decline, inflation is at all time high, cost of pump is all time high, etc. With the same amount of money, we can now get lesser. This will in turn, affect the overall economy.

With the onset of potential global economy slowdown, most countries and their economy are facing the same situation as the U.S. Credit is getting tighter, inflation is high, spending power is lower, cost of living is tougher.

This will create a domino effect and may cause the economy to depress further.