(Corrects paragraph 3 to show 16th consecutive monthly sales decline and paragraph 27 to show Kia sales comparison versus year earlier, not January)

* Overall US Feb auto sales down over 41 pct vs prior year

* Ford, GM slash Q2 production plans

* Results point to deeper recession, need for aid - execs

By Kevin Krolicki

DETROIT, March 3 (Reuters) - U.S. auto sales dropped by more than 41 percent in February to the lowest level in almost three decades as deepening economic uncertainty drove Americans away from big purchases and new debt despite aggressive discounts from major automakers.

General Motors Corp GM.N, which is racing to complete a restructuring plan this month to keep it from bankruptcy, led the sinking industry lower with a 53 percent drop in sales.

The results mark the 16th consecutive monthly drop in auto sales and come as a deepening recession in the United States and slowing global markets have pushed automakers to ratchet back production, ramp up discounts and seek government financing in a bid to survive.

"In our view, we are in an automotive depression," said Standard & Poor's equity analyst Efraim Levy.