LONDON (ShareCast) - US car giant General Motors is following the lead of Ford Motor Company and cutting back on production levels of gas-guzzling pick-up trucks and sports utility vehicles.

The cut-backs are part of a programme of changes announced today by GM, which is in danger of losing its position as number one in the US market to Japanese manufacturer Toyota.

GM said it will reduce production of pick-up trucks and sports utility vehicles (SUVs) by 170,000 units in the second half of the year while offering sales incentives in an effort to reduce stocks of less popular models.

The company intends to increase prices on its 2009 models by an average of 3.5%.

Last Friday GM’s rival, Ford, cut its 2008 projection for vehicle sales in the US to 14.7m – 15.2m units, from 15m – 15.4m units previously, and said it would be cutting back on production levels of large trucks and SUVs.

“As gasoline prices average more than $4 a gallon and consumers worry about the weak U.S. economy, we see June industry-wide auto sales slowing further and demand for large trucks and SUVs at one of the lowest levels in decades," said Ford President and CEO Alan Mulally.

• News Channel