And the new champion of the world...
Toyota Motor Corp. has swept past General Motors Corp. to become the world’s top-selling automaker, marking the first time in 77 years that GM was not on top of the leader board in sales.
The results of the 2008 sales race – which both companies insist wasn’t all that important — haven’t really been in doubt since last summer when Toyota built up a strong lead, but the Japanese automaker also took some unexpected hits, in recent months, as the global car market fell into turmoil.
Toyota sales dropped 4 percent to 8.97 million cars and trucks around the world in 2008, a significant dip from the company’s original forecast, which would have nudged it into 10 million territory for the first time.
GM, however, reported Wednesday its total sales dropped 11 percent to 8.35 million. “The challenges in the global financial markets, including credit tightening, the drop in commodity prices, and economic uncertainty continue to negatively impact overall demand for new vehicles,” GM vice president, global sales, service and marketing, Jonathan Browning said Wednesday. “For the total global industry, we saw about 3.5 million fewer vehicles sold in 2008 than the previous year,” he said.
Despite its many problems, GM posted record-setting sales performance in its Latin America, Africa and Middle East and Asia Pacific regions, and rang up a third consecutive 2 million vehicles sales performance in Europe, last year.
Fully 64 percent of GM’s total sales were outside the U.S. Mike DiGivanni, GM’s general director of market analysis, who insisted that the contest is by no means finished. GM actually led Toyota in the so-called BRIC countries of Brazil, Russia, India and China, and expects sales to grow again in its principal markets in North America and Western Europe. “That story is still being written,” he said.
GM President Fritz Henderson had played down the significance of the change during an appearance at the Automotive News World Congress. “They had passed us in market (capitalization) cash flow and profitability a long time ago,” he said. “Honestly, this is not a measure I pay a lot of attention to. What’s much more important to me is how we make GM successful,” Henderson said.
“Neither company is celebrating,” added Michael Jackson, CEO of the giant automotive retail chain, AutoNation. In an interview with TheDetroitBureau, Jackson said that while “there are bragging rights” to being the global sales leader, this is no time to pop the champagne corks. These are not ordinary times, and whoever wins can’t set back and enjoy it.”