The Financial Times is reporting that General Motors is working on a backup plan to increase production of smaller vehicles in the event that the demand for more fuel-efficient vehicles continues into next year. Such a plan indicates that the company is entertaining the idea that the U.S. market might permanently shift away from large SUVs toward smaller vehicles. Having spend a good chunk of the family fortune on developing the T900 line of large SUVs, the General isn't backing down from its goal of taking a bigger slice of that segment's ever shrinking pie. Rick Wagoner, however, did admit that the company is building more capacity for hybrids than he expected. [via Green Car Congress]

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