GM Plans To Boost New Investment In Auto Segment.

General Motors said it will invest up to $3.5 billion annually in to upgrade its passenger car business, starting this year, with the goal of restoring the division to profitability. Gary Cowger, president of GM North America, said the focus of GM's capital expenditure on new products would shift away from a previous concentration on trucks - sport utility vehicles and pick-ups - to cars.

"Three years ago we were criticized for not having a truck portfolio that was in line with the market, including SUVs, so we spent about 65-67 per cent of our capital expenditures on refreshing our truck portfolios," Mr Cowger said in an interview at the Chicago AutoShow. "The next three years you'll see the car side get the same sort of focus."

GM spends about $5 billion annually on product development, including tooling and supplier costs, but excluding engineering costs. Mr Cowger said the renewed focus on passenger cars would run over the next three years. "We won't neglect trucks, obviously, but what we really are doing is putting a huge focus on the mid-sized segment because it's still the biggest segment in the U.S. car market," said Mr Cowger.

GM plans to launch 17 new or "refreshed" vehicles this year, of which nine are passenger cars, including vehicles in its luxury Cadillac brand.