U.S. auto sales dip to lowest in decades

Washington -- U.S. auto sales have slumped to their lowest level in 26 years, industry experts say.

CNN reported Tuesday that in January sales levels hit their lowest since at least 1982.

The news network said rental car companies' buying fewer new cars added to the already-struggling industry's woes.

General Motors said its sales dipped 49 percent from a year ago. Ford Motor Co. said sales fell 39 percent at its Ford, Lincoln and Mercury brands, and 40 percent overall when including sales at Volvo, which Ford is trying to sell.

Foreign brands also had decreased sales, CNN noted. At Toyota, U.S. sales dipped 32 percent, while Honda sales slid 28 percent. Nissan Motor Co. reported a 30 percent drop in sales.

"We are facing unprecedented times in the industry, and no auto company is immune from current market conditions," said Dick Colliver, executive vice president of sales for American Honda.

General Motors's sales analyst Mike DiGiovanni said that January will mark the first month on record that auto sales in the United States trailed sales in China.

The Wall Street Journal reported that car buyer incentives rose an average 12 percent to $2,714 a vehicle.

Toyota had the biggest increase at 92 percent to $1,973. General Motors experienced the only decline of the six biggest auto makers at 9.9 percent to an average of $2,992.

Copyright 2009 by United Press International.