LATEST FROM OUR BLOGS

» More

- If Mickey Mouse Has to Change—What Does That Say About You?

MORE HEADLINES

» Markets | Economy | Companies

- Health-Care Reform Does Little To Contain Costs: Analysts

BEHIND THE WHEEL VIDEO

» More

Car Imports Widen UK Trade Gap

7 hrs ago

The UK's trade deficit widened to an eight-month high in September as the number of imported cars rose sharply. Neil MacKinnon from VTB Capital spoke to CNBC about the outlook for the UK and sterling.

The Nikkei Business Report

09 Nov 2009

The Nikkei 225 finished up 0.2% at 9,808 Monday, but volume was down at a 6-week low. Fast Retailing, Suzuki Motor, and Kubota were top gainers, but major power companies were among the hardest hit. Makiko Utsuda from The Nikkei has more.

Fiat's 5-Year Road Plan for Chrysler

05 Nov 2009

Fiat said its 5-year road plan to turn around Chrysler will result in the doubling of revenue. "There is no alternative but for Chrysler to be ambitious at this point," Stefano Aversa, co-president of restructuring specialists Alix Partners, said Thursday. "They have plenty of cash."

Ford's Safer Seatbelt 05 Nov 2009
Ford is unveiling its groundbreaking seat belt. CNBC's Phil LeBeau has the details.

Chrysler's Rebirth

05 Nov 2009

Chrysler is kicking off its rebirth and hoping its new game plan will please the government as well as the industry. Mike Jackson, chairman and CEO of AutoNation, shares his insight.

RSS FEED

» Help

Subscribe to this RSS feed
Stay up to date with Behind The Wheel.

CNBC ON DIGG

Behind The Wheel

Text Size

Oct.27

8:58 AM ET

Monday, 27 Oct 2008

If Toyota Passes GM In U.S. Sales--Does It Mean Anything?

Posted By:Phil LeBeau

Sectors:Oil and Gas | Technology | Automobiles and Parts

Companies:Toyota Motor Corporation | General Motors Corp | Honda Motor Company, Ltd. | Ford Motor Company

This week is not only the last one of the month. It's also the week that could determine if GM holds on to the top spot in monthly auto sales in the U.S.

Initial reports of October retail auto sales show Toyota [TM Loading... () ] out pacing GM[GM Loading... () ] and Ford [F Loading... () ]. If that trend holds for the full month, we could be looking at the day many in Detroit have feared for years.

Toyota's October surge is due to a number of factors, most notably the Japanese automakers ability to offer financing while GM dealers struggle in a tight credit market. I've had a few GM dealers tell me that Toyota pushing 0 % is not a huge deal. Which is interesting since far more have told me they are losing potential sales because they can't get financing for customers. How many of those people went across the street to Toyota is hard to tell.

But even if Toyota out sells GM for October, what does it mean? Yes, there are bragging rights, but beyond that is there a residual carry-over to Toyota being #1 in sales for one month? Yes and No.

Yes, in that Toyota's ascent to #1 would confirm the momentum the automaker has been building for years. And the auto business is very much about momentum. When a company is picking up business, the public notices and even the most stubborn people admit, "maybe I should at least look at those cars and trucks."

Can GM's Management Stay In Control?

GM/Chrysler Job Cuts Part Of Scary Times

But an October surge by Toyota may not mean much because it's simply one month. GM will still lead the industry for sales this year. When the credit crunch eases, GM dealers should have an easier time getting credit for customers they are now losing. And if GM merges with Chrysler, the automakers share of U.S. sales will jump up to a commanding 30-32%.

So as this last week moves along, and you read more about GM struggling to hang onto #1 in sales, don't look at this as the end of the battle between GM and Toyota. It's one month.