GM wants to make environmentally friendly versions of its biggest SUVs

The move will affect three plants in the US and Mexico and will focus on the Chevrolet Tahoe and GMC Yukon models.

GM is facing a dip in demand for its cars in the face of strong competition from Asian rivals including Toyota.

Demand for sports vehicles was steady, analysts said, but by cutting output GM would avoid a build up of stock and the discounting needed to sell excess cars.

GM did not say how the changes would affect the company's workforce.

Petrol power

Sport utility vehicles, or SUVs, have been heavily criticised by some groups in the US for using too much petrol and being environmentally unfriendly.

At the same time, the price of petrol has jumped, hitting many US consumers hard in the pocket and causing them to reconsider the benefits of driving of gasoline-hungry vehicle.

Many of the new cars being sold in the US, often by Asian rivals, are more fuel efficient, analysts said.

A report released in the UK on Wednesday showed that sales of 4x4 vehicles had fallen sharply across the UK.