GM, Toyota neck-and-neck in global auto sales
By Tom Krisher
Associated Press
DETROIT — Long the epitome of America's industrial might, General Motors is now a symbol of America's industrial plight: virtually caught by foreign competition.
GM conceded yesterday that Toyota Motor Corp. all but pulled even last year in the global sales race, in another sign that the balance of industrial power is shifting from West to East. GM sold 9,369,524 vehicles, and Toyota said it sold 9.366 million.
It's the closest GM has come to relinquishing its title as exclusive global sales leader since 1931, when Herbert Hoover was president and GM's top seller was the Chevrolet 9AE, a two-door, five-passenger coach that cost just $545.
GM said its worldwide sales were up 3 percent from 2006, with strong growth in many areas outside the U.S., resulting in the second-best sales year in GM's 100-year history. The company said the figures show that GM indeed is becoming a global company.
But Toyota Motor Corp.'s strong U.S. sales growth in recent years, and declining sales for GM in its own backyard, have combined to narrow the gap between the companies to almost nothing.
Both companies say winning the race isn't a high priority, but the thin margin that determined last year's sales leader underlines GM's struggles, with recent years of job cuts, financial losses and plant closures.
"We're not as concerned about who's winning," GM spokesman John McDonald said. "We're just really focused on what we need to do to have a growing business, getting our business right in North America."
That Toyota caught GM is largely due to Detroit-based GM faltering in its home market, industry analysts say.
Toyota's share of the U.S. market has more than doubled since 1990, when it sold about 1 million vehicles for a 7.5 percent share of the domestic market, according to Ward's AutoInfoBank.
In that time, Toyota's sales have grown briskly as drivers opted for its smaller, fuel-efficient cars and their reputation for reliability. In 2007, Toyota sold 2.6 million vehicles in the United States for a 16 percent market share.
GM, third on the Fortune 500 list of U.S. corporations, remains the domestic auto sales leader. But its market share has dropped from about 35 percent in 1990 to about 24 percent in 2007. GM sold 3.8 million vehicles in the U.S. last year.
Aaron Bragman, an analyst with the consulting firm Global Insight, said GM and Toyota have expanded almost evenly in most emerging markets but GM has been hurt by declines in North America as it intentionally cut incentives and reduced low-profit sales to rental car companies.