The American car industry signed off a terrible 2008 with full-year sales figures showing double-digit falls on the back of a dire December.

Japanese carmakers led the pack down in December as even their fuel-efficient engines were not enough to convince consumers to part with cash for a new car. European carmakers also suffered in America last year, with luxury car sales hit by increased nervousness about the housing and jobs markets.

Hyundai, of South Korea, underscored the desperation in the industry by promising American car buyers yesterday that they could return their new vehicles if they lose their jobs.

Toyota, the Japanese giant, said that its December sales in the US were down 37 per cent on the same month in 2007, while full-year sales fell 16 per cent. Honda’s December sales fell 35 per cent, with annual sales down 8.2 per cent. Nissan, Japan’s third-biggest carmaker, said that its American sales tumbled almost 31 per cent in December and just less than 11 per cent in 2008.

Of the big manufacturers, only Subaru, another Japanese carmaker, said that its full-year sales in the United States were slightly higher than in 2007. It claimed a 0.3 per cent rise in 2008, despite a 7.7 per cent fall in December. Its 2008 Forester was named sports utility vehicle of the year last month by Motor Trend magazine, a big boost to its popularity.

GM said yesterday that sales were down by 31 per cent in December compared with the same month in 2007. The car company has been forced to seek two bailouts from the US Government – a share in a $17.4 billion emergency fund for the main business and a further $6 billion for its financing operations. Full-year sales fell 23 per cent on 2007.

Ford said yesterday that sales were down 32 per cent in December and 21 per cent in what a spokesman described as a “very challenging year”.

Mercedes-Benz USA reported an 11.2 per cent slump in 2008 sales and Volkswagen of America said that a 1.4 per cent fall in December sales pushed it to a full-year fall of 3.2 per cent. At Audi of America, Volkswagen’s luxury division, sales were down 6.1 per cent last year.

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