General Motors Corp. announced further production cuts yesterday as well as sweeping new incentives on many 2008 models — a reversal of recent strategy and a fresh sign of how badly rising gasoline prices are hurting auto makers, the Wall Street Journal reported today. GM, Ford Motor Co. and Chrysler LLC have been trying for over two years to back away from heavy incentives, which eat into profit margins and tarnish brands in the eyes of some consumers. But a worsening of the slump in car and light-truck sales this month is forcing the Detroit companies to take difficult steps to halt sales declines. Through the first half of June, normally a strong period, U.S. auto sales were running at an annualized rate of about 12.5 million vehicles, according to J.D. Power & Associates. It was the lowest level for June in decades and a huge drop from the year-ago rate of 16.3 million vehicles.