Yesterday was Black Monday for the North American auto industry.

General Motors Corp. reported December sales dropped 31 percent to a 49-year low, while Chrysler's monthly sales plummeted by 53 percent. Things were equally dismal at Ford Motor Co., where sales fell 32 percent in December.

The usually strong Japanese automakers also had a rough month. Toyota Motor Corp. reported a 37 percent slide, Honda Motor Co. said its sales tumbled 35 percent and Nissan Motor Co. posted a 31 percent decline.

On a yearly basis, Ford's sales for 2008 fell 21 percent from a year earlier, while Toyota's 2008 sales fell by 16 percent to 2.22 million, compared with Ford's 1.98 million. GM's 2008 sales totaled 2.95 million, down 23 percent from the year before.

Analysts said the industry sold 13.2 million cars and trucks last year, which would make it the worst sales year since 1992.

"Obviously this is a huge drop," said Tom Libby, senior director of research analysis at J.D. Power's Power Information Network. "There are several factors at work here. One is obviously the economy. You have higher unemployment, lower consumer confidence, and major losses in the stock market. People have much less money now that they can use, and many people also have much lower incomes than they used to. Also contributing is the tight credit situation."

But many believe the biggest problem is consumer confidence.

"It was one of the worst years ever, and this year will be worse," said Stephanie Brinley, an analyst at AutoPacific Inc. in Southfield, Mich. "It's not a gas problem. It's not a credit problem. It's a consumer confidence problem, and it's worldwide."

But the sales drops in the auto industry were not uniform.

Subaru of America Inc. said its U.S. sales crept higher in 2008, making the Japanese company likely to be the only major automaker with a yearly sales increase. Subaru's U.S. sales rose by 0.3 percent to 187,699 vehicles from 187,208 in 2007, as consumers snapped up its new Forester and Impreza models.

Despite the sales slump, the domestic industry's Big Three saw reasons for hope as they prepared for the media unveiling of their newest products next week at the North American International Auto Show in Detroit.

Compact SUVs such as the Ford Escape are selling well. Other big sellers include the Chevy Malibu, Dodge Challenger and Chevy Traverse, Mr. Libby said.

In fact, Malibu sales were up by 43 percent last month. Even Chevy's Impala, a car that hasn't been redesigned for a few years, had a 19 percent increase, and Ford said it had sold more of its compact Focus models last year -- 195,823 -- than since 2004.

The sales slump continues to mean good deals for consumers. Aaron Bragman, automotive marketing research analyst for IHS Global Insight in Troy, Mich., said large incentives such as zero-percent financing and rebates will continue well into 2009 as automakers try everything they can to boost sales.

GM's North American sales and marketing chief, Mark LaNeve, said the easing of credit restrictions by GMAC LLC after they got a $6 billion federal bailout already is helping dealers attract more customers.

George Pipas, Ford's head of sales forecasting said Ford expects its share of the U.S. market to increase for the third consecutive month, and he sees the company maintaining its roughly 14 percent share of the auto market, even in the midst of a disastrous sales year.

And all three have reason to believe that upcoming models -- several to be introduced at the Detroit auto show -- will be well-received.