GM sales drop 34 percent as tight credit weighs

A General Motors Hummer truck dealership displays vehicles for sale in Carlsbad, California April 28, 2009.

DETROIT (Reuters) - General Motors Corp reported a 34 percent decline in April U.S. auto sales on Friday, as low consumer confidence and tight credit continued to pressure the industry.

GM, which has been operating on $15.4 billion of government loans since the start of the year, said its second-quarter production in North America is targeted at 390,000 vehicles, down 53 percent compared with a year earlier.

GM also said it is extending its job loss incentive program through the month of May to help consumers sidelined by the economic recession.

Under the program launched in April, GM provides up to nine months of payments on vehicle loans or leases, up to $500 per month, if customers lose their jobs for economic reasons.

GM's U.S. sales totaled 173,007 vehicles in April, down 34 percent from 260,922 units a year earlier.

Car sales were down 41 percent while truck sales were off 28 percent.

GM said it had 742,000 vehicles in U.S. dealer inventory at the end of April.

(Reporting by Soyoung Kim; Editing by Tim Dobbyn)