Here comes the reality check for automakers

|By:, SA News Editor

The Ford (F -2.4%) hangover is building today as shares continue to fail to find traction following the automaker's blunt assessment of its North American business.

General Motors (GM -2.4%), Toyota (TM -1.9%), Honda (HMC -1.6%), and Nissan (NSANY) are all lower on the day as investors conclude Ford's reality check could be contagious.

The issue isnt' that demand for 2014 doesn't look strong (forecasts), but centers on worries that the pricing environment and capacity ramp up could seriously crimp profits.

Morgan Stanley on the auto predicament: "The market is clearly moving from a 'need to replace' to a 'can’t afford to pass up a great deal' consumer mindset."