GM to Reduce Number of Mid-Size Models in Lineup By One-Third

DETROIT AP is also reporting that General Motors Corp. will reduce the number of midsize cars in its lineup by one-third.

The move is aimed at saving money and focusing on marketing efforts.

GM's midsize lineup will be thinned to 10 models from 15 by 2006, the automaker told analysts during a meeting at its Milford, Mich., proving grounds.

While midsize cars still represent the biggest segment of the new vehicle market in the United States, the light truck segment, which includes sport utility vehicles, minivans and pickup trucks, has been steadily growing.

GM controls about 32 percent of the midsize car market, but the top two selling cars through July are the Toyota Camry and Honda Accord.

"The competition has become stronger, and we have to refocus our strategy," GM spokesman Jan-Willem Vester told The Detroit News for a story Friday.

GM already has announced the demise of the Oldsmobile brand after the 2004 model year, spelling the end of the Alero and Intrigue cars.

The automaker also has said the Buick Century would be eliminated, but would not comment on further product plans.

At an industry conference Thursday in Traverse City, however, a GM executive said the automaker plans a major shake up of its product line.

"General Motors, for the 2003 model year, will turn over approximately 43 percent of its portfolio," said Jim Queen, vice president North America engineering.

With competitive pressures limiting price increases, Queen said the company must focus on cutting costs and building products "people got to have."