GM to sell 1 mln or more pickups in '07-Lutz

DETROIT, Dec 14 (Reuters) General Motors Corp. expects to sell 1 million or more pickup trucks in the North American market in 2007 even though analysts fear the segment's sales will shrink, the automaker's product chief told Reuters.

''We sell about 1 million a year and we are very well positioned to do at least as well or better (in 2007),'' Bob Lutz said in an interview.

GM in November launched two new pickups -- the 2007 Chevrolet Silverado and the GMC Sierra. Lutz expects the trucks, which boast industry-leading fuel economy, to sell at full sticker-price for several months.

Pickup trucks are typically an automaker's most reliable source of profits. Analysts estimate that a brand-new model can bring in from ,000 to ,000 in profit per vehicle.

As GM works to recover from a .6 billion loss in 2005, it has cut billions of dollars in costs by eliminating jobs and closing plants. The next stage of its recovery hinges on the success of its new products -- especially the lucrative pickup trucks.

But analysts expect volatile gasoline prices and slow housing starts to hit pickup sales in 2007. GM is also competing with heavy discounting from Ford Motor Co. and DaimlerChrysler AG's Chrysler Group, which are offering big incentives on their older models.

''This level of discounting on the pickups is uncharted territory,'' Lutz said, referring to the other Detroit automakers.

''But the good news is that incentives of ,000 to ,000 a vehicle is not sustainable. And I'm very optimistic that we will be able to sell our vehicles at a very good profit.'' GM is offering cash rebates of ,000 on its 2006 Silverados and Sierras but is selling the new models at a full profit.

GM will also face new competition from Toyota Motor Corp. 7203.T, which will launch its redesigned Tundra pickup next year. Analysts expect the new Tundra to gain significant market share.

''The Tundra will take share, but will steal from the older Tundra and from the (Toyota) Tacoma,'' Lutz said. ''I don't think we'll see that much switching from American truck-owners to the Tundra.'' REUTERS DKS PM0439