Car parts suppliers reported plunging profits as Saab was reported to be preparing to file for reorganisation, just one of General Motors' European brands digesting the struggling US car maker's rescue plan.
Deep motor production cuts have hit suppliers hard, with car makers struggling to reduce inventories and keep pace with falling demand for vehicles from cash-strapped consumers.
Top Japanese tyremaker Bridgestone said full-year profit dropped 47% while fourth-quarter operating profit fell 86% on weak sales and a strong yen. The company said it expected a 66% slump in profit in 2009.
Tyremakers worldwide have been struggling to cope with a global car sales slowdown, while Japan's manufacturers have been dealt a further blow by the recent surge in the yen, hitting overseas profits.
Heavily indebted German rival Continental, meanwhile, posted a fourth-quarter fall in profit but pledged to step up cost cuts and generate substantial free cash flow in 2009 in spite of the industry crisis.
The group, the world's fourth-largest car parts supplier, said it was in constructive talks with controlling shareholder Schaeffler about ways to cooperate.
Bucking the trend was German industrial conglomerate MAN, which posted in line full-year results and said it expected group sales to decline in 2009, but still hoped for 'good' results helped by strong earnings at its diesel engine business.
The group posted full-year operating profit up 11% at €1.73 billion - the best in its 250-year history and in line with a €1.74 billion analyst consensus.
Meanwhile, flagging US carmaker GM's loss-making Swedish unit, Saab, could decide to file for reorganisation - an alternative to outright bankruptcy - later today after a morning board meeting, Swedish radio reported.
GM has no plans to close Opel plants, the premier of German state North Rhine-Westphalia said today, following a meeting with GM Chief Executive Rick Wagoner.
General Motors said in its restructuring plan submitted to the US Treasury on Tuesday that it would cap its financial support for Saab, and aimed for it to become an independent business from the start of 2010.
