Instead of having bloated inventories sitting in their yards that beg for consumer incentives to help turn on the ignition keys to move them, Detroit might be taking a new tack in 2008. With the “R” word projecting in the minds of many sleepless execs; it appears production cuts may replace incentives in 2008.

If the market continues to sag, and recession looks like it may become imminent, incentive won’t go away totally, but if dynamics warrant, look for less cars coming off the line to maintain internal costs, stablize prices and lighten inventories.