- Japan Third Quarter GDP Jumps; 2010 Growth May Slow
- Analysis: APEC Nations Back Face-Saving Climate Plan
- Shift Into High-Quality Stocks Could Move Market Higher
- Drug Study Questions Effectiveness of Merck's Drugs
- Military Arms Race Dominates Dubai Air Show
- Buffett: I Haven't Bought AMEX Shares in Years
- Disaster Film '2012' Drowns Rivals at Box Office
- Cities With the Most Home Price Reductions
- Cramer: 5 Earnings Reports to Watch Next Week
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- U.S. Stocks Rally for the Second Straight Week
- Dollar is Not Plunging—So 'Calm Down': Market Strategist
- Strategists Say Markets Have More Upside — But How Much?
- Hirschhorn: Risk-Averse Traders
- Roginsky: A Funny Thing Happened on the Way to Financial Reform
- This Year's Biggest Thanksgiving Leftover: Cash
- TV Series Inks Unique Deal For Fight
- First Time Buyers Rescue Housing: Realtors
MOST SHARED
- U.S. May Wind Up Green With Envy
- Japan Third Quarter GDP Jumps; 2010 Growth May Slow
- Warren Buffett to CNBC: 'I Haven't Bought American Express In Years'
- Disaster Film '2012' Drowns Rivals at Box Office
- The Cost of Thanksgiving Dinner 2009
- For Investors, The New Green Looks To Be White
- Analysis: APEC Nations Back Face-Saving Climate Plan
- Dipping Into Green Investing
- CNBC TRANSCRIPT: Warren Buffett & Bill Gates - Keeping America Great
Text Size 
General Motors trailed Japanese rival Toyota Motor in global vehicle sales decisively through the second quarter and first half of the year, hurt by a large decline in North America.
 |
AP |
The Detroit-based automaker said on Wednesday that vehicle sales fell 3 percent to 4.54 million vehicles in the first half as higher sales in Europe, Asia and Latin America failed to offset a 15 percent decline in North America.
Toyota sales [TM
Loading...
()
], meanwhile, rose 2.2 percent to 4.8 million in the first six months of 2008. The tally includes sales at mini-vehicle unit Daihatsu Motor and truck unit Hino Motors.
Higher U.S. gas prices have "put an enormous amount of pressure" on GM's truck sales, said Erich Merkle, an automotive consultant with accounting and consulting firm Crowe Chizek. "That is equating to lower sales for GM and causing them to now fall behind Toyota."
Both the automakers have cut U.S. truck production in response to weak U.S. auto sales and a consumer shift from low-mileage vehicles because of high fuel prices.
The slump in U.S. demand for large SUVs and pickup trucks has hit GM particularly hard as the high-margin vehicles historically account for a majority of the automaker's sales.
Toyota, on the other hand, has been able to weather the downturn better because of its strong car line-up, but plans to cut its global sales target for 2008.
GM [GM
Loading...
()
] and Toyota were roughly even in 2007 for the top spot among the world's automakers, with GM slightly ahead if sales from a China business were included.
Strong Growth Outside North America
GM's global sales fell 5 percent in the second quarter to 2.28 million vehicles, including a 20 percent decline in North America, its largest market.
GM's sales in North America fell to 963,929 vehicles in the second quarter from 1.2 million, hurt by the slow U.S. economy and labor disruptions in the U.S. market, the company said.
Quarterly sales rose 10 percent outside North America.Sales in Latin America, Africa and the Middle East rose 17.7 percent, while sales in its Asia-Pacific region grew 14.6 percent, GM said. Sales rose 2.5 percent in Europe.
Overall, GM expects global demand for autos to increase 2.5 percent to 72 million vehicles in 2008 from 70.6 million last year, driven by sales increases in emerging markets.
Mike DiGiovanni, GM's chief sales analyst, said most of the industry's sales increase is expected to be in the so-called BRIC countries -- Brazil, Russia, India and China.
"Certainly the biggest risk is the U.S. economic downturn and potential spill-over effects on the global economy," he said.
Print
Email
- Where, what, how.
- Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
- For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
- Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
- The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
- Switzerland's privacy watchdog is taking legal action to force Google to make changes to its Street View service.
Data is a real-time snapshot *Data is delayed at least 15 minutes