GM lowers big SUV sales forecast

DETROIT, Aug. 31 (UPI) -- General Motors Corp. says U.S. demand for its big sports utility vehicles is falling, the Detroit News reported Wednesday.

The world's No. 1 carmaker's large SUV sales peaked at 505,000 units in 2001 and are projected to be 435,000 on an annual basis this year.

"We're not anticipating that the market will reach or exceed its prior peak," said GM spokesman Paul Ballew. "Given all the alternatives out there, given the uncertainty on gas prices, given some image factors, we think it's appropriate to plan in a more conservative manner and to assess the market potential for us in volume levels that don't take us to our prior peak."

The reduced sales forecast comes just one day after GM said it had begun recalling 804,000 large pickups and SUVs to repair anti-lock brake systems.

The vehicles are registered in 14 states in the Northeast and Great Lakes regions and West Virginia, where road salt used to melt winter snow and ice has corroded some of the systems.