GM to cut truck production

General Motors has initiated a series of steps from cutting production of trucks to offering aggressive incentives to combat …

General Motors has initiated a series of steps from cutting production of trucks to offering aggressive incentives to combat the drop in demand for large vehicles.

The production cuts and increased incentives come as the largest US automaker struggles with a deepening slump in US auto sales amid a consumer exodus from pickup trucks and SUVs.

"We really want to spark the market at the end of the month," GM's US sales chief Mark LaNeve said last night. "We want to close the quarter strong."

GM also said it hired Citigroup to help review its Hummer brand that the automaker is looking to sell or revamp.

"They will be able to assist us quite a bit in going through options for the brand and in addition, potential offers that we may get from potential buyers," Mr LaNeve told reporters.

Mr LaNeve, who declined to name any potential buyers, said Citigroup will help evaluate all options, including a complete revamp of the lineup, partnerships or licensing.

GM announced earlier this month it was reviewing Hummer and could sell the military-derived SUV line, which has become synonymous with gas-guzzling excess and has hurt GM's image at a time when consumers are demanding more fuel efficiency.

Mr LaNeve said no other GM brands were under review.

In response to the decline in demand for larger vehicles, GM will decrease production of pickup trucks and SUVs by 170,000 units but increase output of cars, crossovers and vans by 47,000 units during the second half of the year.

GM will temporarily idle several North American truck plants starting next month and schedule overtime for workers at plants that build cars, crossovers and vans through the second half of the year.