UPDATE 1-AUTOSHOW-GM's Clarke sees "rough" quarters ahead

(Adds details on incentives, demand)

CHICAGO, Feb 6 (Reuters) - The head of General Motors Corp's (GM.N) North American operations said on Wednesday the next few quarters would "look kind of icky, to be honest" for the industry in North America as a result of pressures on U.S. consumers as the economy slows.

Speaking at the Chicago Auto Show following the unveiling of GM's new Chevrolet Traverse crossover vehicle, Troy Clarke told Reuters that the "next few quarters are going to look kind of rough" for the industry.

But Clarke said the industry had already "lived through six quarters of declining auto markets" and predicted things would pick up in the second half of the year.

"So let's say we get to eight quarters of this. Hey, there's a bottom to this some place" he said.

Clarke told reporters later that "prudent" use of incentives would be appropriate to support industry sales in the first half and incentives likely would begin to taper in the second half of 2008 as sales improve.

Clarke said GM is starting to see the beginning of some pent-up demand in the U.S. auto industry after six quarters of contraction and said he saw "reasons for hope and reasons for optimism" in December sales numbers.

The annualized U.S. auto industry sales rate for the last six months of 2008 could range from 16 million to 16.5 million vehicles, after running in the low 15 million range in the first half under prudent incentives, he said.

Clarke said the second half could look significantly better if there is pent-up demand, the U.S. housing market recovers, the federal government's stimulus program works, and the Federal Reserve's rate cuts begin to be felt.

"How quickly does it improve and where does it go to, that remains to be seen," Clarke said. (Reporting by James B. Kelleher and David Bailey, editing by Leslie Gevirtz)