Given the condition of the economy, it is not surprising that even the most successful carmakers are experiencing less than stellar financial performance these days. Although not teetering on the brink of bankruptcy, Japanese automakers are experiencing losses for the first time in decades. The losses can be attributed to the global slump, the deepening of the U.S. recession, and devaluation of the U.S. dollar in the face of the rising yen.

Nissan will post its first loss in over a decade, with a predicted shortfall of $2.4 billion this year, compared with its $5 billion profit last year. Undeterred, Nissan is expecting to rebound as consumer confidence returns and the credit crunch gradually loosens. Mazda, one of the big 5 Japanese automakers, lost $733 million last year while Toyota did worst of all five with $4.5 billion in losses.

The only Pacific Rim automaker which remained in the black last year was Honda, with a $1.4 billion profit. Next year's financial predictions show Nissan losing only $1.7 billion as the world market begins to return to normal. A return to profitability will depend on creative engineering for a changing world market, which is looking at plug-in electric vehicles to succeed the Toyota Prius, a concept which Nissan and others are pursuing aggressively.