General Motors has decided to cut the budget of some of its departments by as much as ten per cent in yet another sign that vehicle sales will continue to struggle.

Gary Cowger, president of GM North America, said administrative support departments had been told to cut their budget by ten per cent, up from the previous goal of three per cent.

He revealed that market pressures had forced the company to take such a decision.

'Although we set pretty aggressive budget targets at the end of last year, as we get into this calendar year, and as the market pressures have come upon us, and as the incentive atmosphere continues to be very intensive, we've just got to react as we go forward,' Mr Cowger said.