Suppliers expect at least two to three years of pain in western Europe, as the economic downturn cuts output by as much as 20 percent.
According to a survey conducted by researchers SupplierBusiness and Roland Berger Strategy Consultants, suppliers main worry for 2009 is declining production volumes in North America. Concern over European production is a close second.
The survey, which polled 152 suppliers in the final months of 2008, also shows that downward price pressure and exchange rate volatility are expected to play big roles in 2009.
Many expect North American car production, at its lowest point, to be down as much as 30 percent from current levels.
European production will not be hit as hard, but is still expected to be down 16 percent to 20 percent by most suppliers interviewed.