GM loses sales title to toyota

[MR.hp]

GM loses sales title to Toyota
GM's sales fell 10.8% in 2008. GM sold 610,000 fewer cars than Toyota, making it the first time in nearly 80 years that GM was not top in global sales.

NEW YORK (CNNMoney.com) -- General Motors lost the title of world's largest automaker to rival Toyota Motor in 2008, according to sales figures released Wednesday by the troubled U.S. automaker. It was the first time in nearly 80 years that GM did not sell the most cars in the world.

GM (GM, Fortune 500) reported that global sales plunged 10.8% for the year to 8.36 million vehicles. That allowed Toyota (TM) to move ahead of GM with sales of 8.97 million vehicles worldwide.

GM executives tried to play down the significance of the company losing the title it had held for 77 years.

"I don't think being No. 1 in global sales means much at all to the average consumer," said GM sales analyst Mike DiGiovanni during a conference call Wednesday. "What matters most to the consumer is strong brands and strong products."

A spokesman for Toyota also downplayed the shift in the global sales leader title. "Being No. 1 in volume has never been our goal. Being No. 1 in quality and customer experience has been our goal," said spokesman Steven Curtis.

DiGiovanni said GM is much more focused on stemming losses in its auto business and proving that the company can be viable for the long-term.

The company was in danger of running out of the cash it needed to continue to operate last month before it received approval for $13.4 billion in loans from the federal government. GM has until Feb. 17 to provide the government with a long-term plan to remain viable or it risks having to repay the loan.

But for the short-term at least, there are no signs that sales will improve anytime soon. DiGiovanni said that the seasonally-adjusted annual U.S. sales rate will fall below 10 million vehicles in January. That would be the first time below that benchmark since 1982.

Industrywide U.S. sales came in just over the 10 million sales pace in each month of the last quarter of 2008 despite a sharp plunge in demand that left sales down 35% from year ago levels.

Investors seemed concerned by the bleak outlook. Shares of GM fell 2% Wednesday morning even though the broader market rallied following Tuesday's big plunge.

DiGiovanni attributed the new low for U.S. industrywide sales to a sharp drop in fleet sales to businesses, such as rental car companies, rather than further weakness in consumer sales.

He added that the decision by GM, Chrysler LLC and Ford Motor (F, Fortune 500) to trim first quarter production due to weak sales is leading to the drop in fleet sales, and that retail sales should be at or slightly above sales seen in the fourth quarter.

Another rough year ahead
DiGiovanni said the company is hopeful that economic stimulus plans being considered in the United States as well as in other nations should hopefully help sales later this year. But he cautioned that "2009 will be a very difficult year."

GM's sales in Europe fell 6.5% while sales in North America plunged 21%. The company did post full-year sales gains in its Asia-Pacific region, as well as in its Latin America-Africa-Middle East region.

The loss of the No. 1 automaker title came as no surprise. Toyota finished 2007 only 3,101 vehicles behind GM, as its sales rose and GM's fell that year.

But Toyota's sales fell 4% in 2008 as all automakers were hurt by high oil prices earlier in the year and the global recession. Toyota has already said that, due to the sharp drop in global demand for autos, it will report its first operating loss as a public company during its current fiscal year.

Toyota's sales declines are a more recent problem, however. GM has been losing market share in the U.S. to Toyota and other import brands for decades.

Still, DiGiovanni would not concede that Toyota will hold the No. 1 sale title for the foreseeable future.

He pointed out that GM is still ahead of Toyota in sales in the United States and Western Europe, the two markets most hurt by the global recession and credit crisis, and he pointed out that GM is also ahead of Toyota in many growing markets, such as China, India and Brazil.

[itsageo]

Fancy that... Here is to hoping GM keeps pushing the bar like they are with their new line up and that those vehicles don't suck ass as far as reliability is concerned.

[MR.hp]

Fancy that... Here is to hoping GM keeps pushing the bar like they are with their new line up and that those vehicles don't suck ass as far as reliability is concerned.

I am not sure if GM cars are all that unreliable as I had worked at GM dealers all my life. What we see is only a small % of cars made that have trouble, But I will tell you that imports have the same crap happen to them that happen to the domestics. How do I know you say?, Well let me tell you My wife and I used to own a '89 honda civic bought in '90 and even though it ran good it was a POS. It went through 4 exhaust systems 3 alternators and the rear quarter pannels rusted out prematurely, The car had 80K on it when we sold it so I have never bought a import again.

I bought a '91 6000 8 years ago that had 131K on it put in 800$ repairs that the other person did not want to do and I drove that car untill my son wanted something nicer to drive and it's still running with 155K. One of the best cars I have ever owned and never left me stranded.

All in all, cars are cars, all manufacturers models break down, period.
It's too bad that GM has seen fit to make it's cars look like imports as the domestic cars used to have their own style and that was one of the things that made them sell. The days of unreliable cars are gone and poor maintanance is the big key to making a car last.

Look at all the high mile GM cars and trucks on craigslist for sale and that should say something, I mean a 97 suburban with 220K still going strong I guess that's unreliable?

[Z28SSMAN]

As far as the sales title goes, so what? How long has each company been in business and Toyota takes a sales lead once and it's big news???? Why not talk about how incredible it is for GM to be the leader for 77 years?

Hell I can't think of anyone...company...sports team or individual that is number one for 77 years can you?

602 is right about dependability.

My sister was convinced by a good friend to buy a Maxima. Well, everytime she brings it into the shop for an issue, it cost her a few hundred bucks. Nissan calls it "required maintenance" and if she doesn't bring it in they claim they'll deny future warranty claims.

Her previous GM cars were dependable and other than replacing warped rotors were basically trouble free. In fact, one of her previous cars was passed down to a nephew who sold it to a friend who then gave it to his daughter to drive to college. When she finished, he took it back and drives it to work to this day. The car? a Regal GS 3800 which now has over 400k on it. Her other car, a '98 Monte with the 3800 has over 200k and runs like a clock....and she never had to go through the required maintenance scam that Nissan pulls.

People that nuttswing the Toyotas, Nissans, etc, say the cars are dependable and "never break". Hell, they require you to bring it in so they can repair shit BEFORE it breaks and then claim how reliable they are. The repairs are certainly not free either.

Now, I believe in a good maintenance to ensure dependability, but let's be honest about the fact that all cars break and are pretty equal as far as reliability goes. The myth about how unreliable GM cars are needs to stop.

[itsageo]

I was just saying that it would be great for gm (and everyone in the USA) if the new stuff that looks great on paper turns out to be as good in actuality.

[Z28SSMAN]

Can't argue with that. By the way, its ok to disagree with us in here. Disagreeing and trolling are different.

[itsageo]

I know it is ok to disagree, but I really hope gm does well, it will be good for the economy and enthusiasts alike.