General Motors to focus on small car development
US market will follow trends in UK and Europe

General Motors has said it is going to focus on the development and sales of small cars in the US.

According to the manufacturer, such a shift in emphasis is unnecessary in the UK, as high petrol prices and environmental awareness have already made the small car market dominant.

“In Europe and the UK, we're already in that theme,” said a spokesman from GM.

“That's what you'll see as the move in the US, but we don't have to downsize to small cars here.”

GM's shift in emphasis is necessary in the American market, where low petrol prices and image conscious buyers mean that larger, higher-polluting, vehicles are more popular.

Bob Lutz, GM's head of design, has said that the manufacturer must market as many small cars as it does larger vehicles in order to avoid penalties for failure to meet federal fuel-efficiency guidelines.

GM could potentially take a hit for such a move, as the company readily admits it loses an average of $2,000 (£1,014) for every small car it sells.

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