Major car manufacturers like Ford, Toyota, American Honda, and General Motors all reported decline of sales in December 2008 as the whole auto industry suffers with sales plummeting by as much as 31%. The drop is the worst of the car manufacturing sector since 1992.

It was a picture of bad going to worse going worst for major players in the car industry. GM had its darkest dropped in sales since 1959 while Ford had their most horrible performance since 1961.

Toyota’s sale was down by more than 30 months for two consecutive months so is Nissan’s which was struggling for 4 consecutive months. Chrysler sold 53.1% lower compared to 2007.

Year over year, the December total for the US auto industry was lower by 35.6% despite car manufacturers throwing in incentives to close deals. The December figure marked the fourth month where the drop in sales went over 25%. The car manufacturing sector is one of the hardest hit by the longest recession since the 1980’s. The federal government is still thinking of throwing a life line for GM and Chrysler.

The average incentive offered by car makers is around $2902 per vehicle last December. Year over year, this is bigger by 18% and abut 8% more generous than what they gave last November.

Car sales as it lowest, predicted by experts just to hit the 10 million mark. November was at 10.3 million which is the lowest in the last 26 years. The December statistics show an insignificant jump to 10.4 million.

Despite the bail outs, consumer confidence is low amid a future that is very difficult to forecast.