General Motors (GM) has announced an upturn in fortunes for the start of 2006, with a six per cent increase in its US sales.

The company, which has struggled in recent months and has announced a major restructuring programme to cut its losses, saw a six per cent growth in vehicle sales during January and a 15 per cent increase in sales of its cars.

While truck sales for the month were almost flat, the overall growth in sales will be welcomed by the group, which has found it difficult to compete with the growth of Japanese rival Toyota over recent months.

GM has now also revealed that it is set to launch SUV hybrids as it seeks to tackle the emergence of the fuel-efficient, clean energy market.

As emissions regulations across US states have got tighter in recent years, together with the rising cost of oil, more consumers have turned their backs on gas-guzzling vehicles, preferring more fuel-efficient options or hybrids such as Toyota's popular Prius.

GM is now looking to break into that market investing as much as $118 million in its Baltimore transmission plant, which will be the destination for the production of the new hybrids SUVs.


Ÿ Adfero Ltd