GM to Trim U.S. Sales Forecast for Quarter

General Motors Corp. plans to reduce its fourth-quarter industry sales forecast because this month’s terrorist attacks deepened a slowdown in demand for cars and trucks.

The largest auto maker will scale back its estimate of annualized U.S. sales an unspecified amount from about 16 million, chief economist Paul Ballew said.

Industrywide sales of new cars and light trucks slowed as much as 37% after attacks on the World Trade Center and Pentagon, J.D. Power & Associates said. Sales, now recovering, will be lower than forecasts for the quarter and year, analysts said.

Also, GM agreed to pay $1.25 million to 16 workers and allow monitoring of a New Jersey assembly plant to settle claims the auto maker allowed sexual and racial harassment there.

GM didn’t admit any liability under the consent decree signed with the U.S. Equal Employment Opportunity Commission in U.S. District Court in Newark, N.J.

GM fell $1.26 to $40.10 on the NYSE.