GM cuts back on truck production

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US car giant General Motors (GM) has cut production at six plants producing pick-up trucks and 4x4s as sales fall.

Overtime shifts have been stopped at sites in Texas, Indiana, Michigan, Wisconsin, Mexico and Ontario for the rest of the year, GM said.

It added that stiff competition, high fuel costs and a weak housing market had knocked demand for the vehicles.

Recently, GM revealed truck and sports utility vehicle sales had dropped 9% in the first seven months of the year.

"Reducing overtime production enables us to reduce pressure for excessive incentive spending, helping us keep brand and product residual values as high as we can," said spokesman Tom Wickham.

Earlier this summer, Japanese rival Toyota was offering perks worth up to $5,000 on each of its new full-size Tundra flat-bed trucks, research from automotive research site Edmunds.com showed.

The move prompted GM to raise its spending on incentives to lure in buyers.

Mr Wickham added that while GM was ending overtime at some plants it would not be revising its production forecasts.

However, he said the group might revise its forecasts when it unveils its next monthly sales results on 4 September.