Washington  - US carmaker General Motors Co will boost production by 60,000 vehicles by the end of the year to meet demand that has surged in recent weeks, largely due to the government cash- for-clunkers programme.

GM said most of the expanded production would come in the September-December period. All plants were likely to see increased production in the coming months, GM said in a statement.

The announcement follows on the heels of a similar announcement by US rival Ford Motor Co. It will return 1,350 people to work in Ohio and Ontario, Canada. The focus will be on Chevy models Equinox and Cobalt and the GMC Terrain.

The government's cash-for-clunkers programme gives consumers up to 4,500 dollars to trade in their old, petrol-guzzling cars for a new and more efficient vehicle. It has proven hugely popular, halting some of the massive sales declines witnessed by US carmakers since October.

"The uptick is an encouraging sign that vehicle sales are turning around, and we will ramp up quickly to meet that demand," said Tim Lee, GM's vice president of global manufacturing and labour.

Ford last week said it would produce 10,000 extra vehicles in the next three months to keep up with the growing demand. (dpa)