I saw an article or two yesterday about calls for bringing back cash for clunkers--I don't think it'd happen, this is not like last time, there is plenty of money to go around, just no demand. Those who want to and can afford to (?) buy new cars are going to do so. I'm not sure that incentives will "fix" the issue and bail out sales, just a gut call on that one.
I could see some further contraction. Ford and GM have all but bailed on cars, right? In a time where you'd think low cost cars might make a comeback, I'd wager a big nope on that one. If car sales remain down, along with gas prices, then I can see people finding easier to justify the larger SUV that they wanted in the first place. I think we'll see even less sedans here--maybe some world cars, Mirage or Kia's that could be cheaply brought here for the lowest end of the market--but I think this will finish off the sedan. And the wagon. Only cute utes and up will be left. Just my guess, but I think this will accelerate current trends, not make new ones.