2008 Detroit Auto Show: GM Sees Car Industry Pricing Pressure in 2008

DETROIT, Jan 15, 2008; Jui Chakravorty and David Bailey writing for Reuters reported that General Motors expects the U.S. auto industry to increase incentives and promotions to maintain sales above the 16 million mark in 2008, GM's North American sales chief told Reuters on Tuesday.

Speaking on the sidelines of the North American International Auto Show, Mark LaNeve also said he expects there to be more intense competition in the U.S. pickup truck market, where GM faces rivals such as Ford Motor Co , Chrysler and Toyota Motor Corp (7203.T: Quote, Profile, Research) and a housing downturn that has torn into consumer demand for trucks.

Demand for pickup trucks industry-wide will begin to grow when the housing market recovers, likely in 2009, LaNeve told Reuters.

LaNeve said GM expects U.S. retail sales in its Saturn unit to grow by about 10 percent this year. GM is also considering entering the small luxury car market in the United States, a segment that could grow with the rising cost of gasoline.