March 26 (Reuters) - General Motors ( GM ) expressed optimism

on U.S. auto sales Tuesday as rival Ford Motor ( F ) reaffirmed

its annual core profit outlook.

Ford said it expects an annual core profit of between $10

billion and $12 billion as Ford CFO John Lawler said the

company's plan is improving growth, margins and capital

efficiency.

GM Chief Financial Officer Paul Jacobson said auto sales in

March were "looking really strong" after a strong February as GM

incentives come down.

"All in all, a really, really good start to the year and we

feel good about where we're trending," Jacobson said.

GM shares rose 1.3%, while Ford fell 2%.

GM had assumed a 2-2.5% price reduction but this year GM has

not seen any drop in prices. "Demand is actually hanging in

pretty strong," Jacobson said

Legacy U.S. automakers, which rely heavily on sales of large

trucks and SUVs, have been bogged down by higher expenses

related to electrifying their lineups and bumpy demand for

battery electric vehicles.

GM also expects to achieve its annualized production rate

target of between 200,000 and 300,000 EVs by the end of the

year.

GM has also had to navigate expenses and headwinds related

to its Cruise self-driving unit. "We still see a lot of promise

in that business," Jacobson said.

In contrast, Chrysler parent Stellantis ( STLA ) said

earlier this month it would lay off about 400 U.S. salaried

workers as it seeks to cut costs, boost efficiency and ramp up

its electric-vehicle production plans.