GM US 9% Sales Slump 2006

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TROUBLED automaking giant General Motors Corp today reported an almost nine per cent fall in annual US sales but insisted that its recovery was on track.

GM, which could lose its status as the world's biggest auto company to Japan's Toyota this year, said sales in the United States fell 8.7 per cent from 2005 to just over 4.124 million last year.

In December, total car and truck sales fell a hefty 9.6 per cent year-on-year to 341,327.

But the monthly performance was still "very solid" and exceeded company expectations, said Mark LaNeve, GM's vice president for North American sales, service and marketing.

"In 2006, despite challenging conditions, we stuck to the game plan and achieved our stated goals in support of (chief executive) Rick Wagoner's turnaround plan for North America," he said.

GM had stabilised its market share while "substantially" lowering the average incentive it offered to customers on its new models by $US700 ($A880), Mr LaNeve said.

"For 2007, we'll continue our plans to stabilise retail volume, improve our mix, reduce sales to the daily rental market, exercise strategic and tactical incentive programs and strengthen average transaction prices."

Last month, GM North America produced 319,000 vehicles, down 12 per cent from December 2005.

Like its smaller Detroit rival Ford, GM is laying off thousands of workers and shuttering plants as it seeks to shore up its business.

Toyota, which posted record-breaking US sales of more than 2.5 million vehicles in 2006, looks on course to surpass GM as the world's leading automaker in production terms this year.