General Motors is rebuilding its once strong position in mid-size cars, according to Troy Clarke, the president of GM North American Operations.

"GM needs to have a strong presence in mid-size cars once again," said Clarke, who disclosed that GM will unveil the 2008 Chevrolet Malibu during the North American International Auto Show in January.

"Our next important step will be the introduction of the next-generationMalibu in Detroit. That vehicle will re-establish the tradition of giving customers more bang for their buck ... great design, high style, and appointments that you wouldn't expect for the price," he said.

The introduction of new cars such as the Malibu and the replacement for the Cadillac CTS "will lead us to be known as a great car maker - not only as a great truck manufacturer that also happens to make cars. That's another key to improving our net sales," Clarke told the Automotive Press Association.

"We have no plans to lose our place in the truck market," he said. "But, to really increase revenue, we have to maintain our position in truck sales while we also go after the car market as well."

Clarke said that over the past couple of years, GM has replaced a loose, regionally-oriented organization with a new structure that will allow it to operate as a truly global company in the future for the first time.

"Regional presidents presided over various platforms and architectures, manufacturing systems, and poorly coordinated export initiatives. Capital and resources flowed to what was thought to be the best business case, but too often was given based on historical trends...canceling out any hope of better economies of scale," noted Clarke, who took over as head of the company's North American operations after spending two years as GM's top executive in Asia.

Clarke also emphasized that GM's culture is changing so that cutting costs is always a top priority. GM lost $10.5 billion in 2005 but the company is showing signs of recovering as its Asian operations continue to expand and its North American operations move towards break-even.

"The result of all of these efforts led us to record cost reduction - more than we even thought possible. I believe it's a fair statement to say this progress is unprecedented. It's been done to a magnitude, and at a speed, that may be unmatched in American business history," he said.

Clarke also said GM is facing some major headwinds in the form of what he described as an "auto recession" that has cut deeply into sales and reduced revenue across the entire automotive segment for the first time in 19 years.

Clarke also said GM is facing some major headwinds in the form of what he described as an "auto recession" that has cut deeply into sales and reduced revenue across the entire automotive segment for the first time in 19 years.