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JULY 2008 W4 ALERT Toyota Passes GM; Company in the Fast Lane to Global Dominance<Reuters-DETROIT><Jiji Press-NAGOYA><July 23, 2008>Toyota Motor Corp. is cruising in the fast lane as it flies by General Motors Corp. with sales results showing strong sales of their cars globally in the second quarter and first half of the year and suggesting that GM’s truck-focused woes continue.
GM’s sales declined a full 3 percent in the first half of the year for total vehicle sales of 4.54 million units. GM’s results showed that even though it enjoyed higher sales in Latin America, Asia, and Europe, it was not enough to negate a 15 percent decline in the troubled North American market.
Toyota, on the other hand, had a sales increase of 2.2% for a total of 4.8 million units in the first half of this year. These sales include the Daihatsu Motor Co. and Hino Motors Ltd, units of the company.
Most analysts feel that higher prices at the gas pump have hurt GM who for years has focused its business on higher margin pickup trucks and SUVs. Toyota, while also in the truck business, generates much more of its overall volume from its more efficient car models. And greater fuel economy is what more and more Americans are looking for.
In a separate report from the Jiji Press, Toyota executives are said to be planning to cut its overall global sales and production plans by around 350,000 units to reflect weakening demand…especially in the U.S. market. This will place their total sales for the year at around 9.5 million units, marginally above last year’s sales of 9.37 million units.
Particularly in the United States, unnamed company executives told Jiji that they now anticipate a sales decline for the year of about 10 percent.
Both companies expect to enjoy stronger growth from emerging markets, with GM specifically identifying what it calls the BRIC countries (for Brazil, Russia, India, and China.) (Photo credits: Reuters) |
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