Production at General Motors and Ford is to be slashed in the US in a move that is likely to concern some automotive industry observers hoping for signs of an upturn.

Ford confirmed it would be cutting output by 10,000 vehicles by the end of this month, as the latest sales indicators suggested the decline among car buyers was set to continue.

The automotive manufacturer saw February sales stumble by three per cent on January's figures, with performance for the start of 2005 also down in comparison with the same period last year, as sales fell 7.3 per cent.

General Motors also suffered, seeing sales slide by 13 per cent as it announced production cuts of ten per cent in the second quarter.

The move follows first quarter production cuts of 45,000, as the US automotive market continues to struggle.

GM chief sales analyst Paul Ballew said that the firm had enjoyed "some positive momentum" for new models, but he acknowledged that February sales were "disappointing and below our expectations".

It was a sentiment echoed by Mark LaNeve, GM's vice president for North American sales, service and marketing, who said the "year is starting off slower than expected, both for GM and the industry".

Meanwhile, there was some positive news for Japanese outfit Toyota, which said that a growing green awareness among consumers in North America had helped boost its profit margins.

Jim Press, executive vice president of Toyota Motor Sales USA, explained: “As gas prices continue their upward march, fuel efficiency catches the public eye.”