Toyota's Beats GM For First Time In Global Sales

[M.D. Holloway]

Toyota's Beats GM For First Time In Global Sales
By Yuri Kageyama, AP Business Writer - April 24, 2007

TOKYO (AP) - For the first time ever, Toyota sold more vehicles globally in a quarter than General Motors (GM), preliminary January-March figures show, the clearest sign yet that the Japanese company is on track to overtake its U.S. rival as the world's top automaker.

Toyota Motor Corp.'s success is fueled by robust demand for its reliable, fuel-efficient models, including the Camry, Corolla, Yaris and gas-electric hybrid Prius.

Final bragging rights as the world's top automaker, a title GM has held for 76 years, won't be decided until global vehicle production numbers get tallied for the full year. However, Tuesday's numbers show that Toyota is getting closer. The Japanese company sold 2.35 million vehicles worldwide in the first quarter, Toyota said, surpassing the 2.26 million vehicles GM said it sold in the period, according to preliminary figures.

In 2006, Toyota's global output rose 10 percent to 9.018 million vehicles, while GM and its affiliates produced 9.18 million vehicles worldwide, a gap of about 162,000. In the first quarter, Toyota made 2.37 million units while GM had expected to produce 2.34 million during the same period, and has not given a final number.

''Toyota sales are booming because of its good image around the world about reliability and ecological technology,'' said Koji Endo, auto analyst with Credit Suisse in Tokyo. ''It's just the opposite for GM, and its image is deteriorating.''

The cycle of good news keeps getting better for Toyota as it can use its profits to keep growing. With the company doing so well, morale is high at Toyota, keeping the positive cycle going, while GM tends to be dragged down by battles with its union, Endo said.

But Endo also warned that increased size also brings other problems like trying to ensure quality and manage a sprawling network of manufacturing and sales.

''As your volume gets bigger and bigger, in many cases efficiency tends to drop,'' he said. ''There might be a risk of being over-stretched.''

Toyota has long beaten GM in profitability, racking up record profits for the past four years, with $11.8 billion profit for the fiscal year through March 2006.

GM, meanwhile, has been negotiating severance packages with thousands of workers in an effort to turn around its North American operations. In the fourth quarter of 2006, it reported a profit of $950 million, a big turnaround from a loss of $6.6 billion a year ago.

GM doesn't give yearly forecasts, but Toyota is shooting for global output of 9.42 million vehicles and sales of 9.34 million units.

While Toyota appears on course to supplant General Motors this year, GM's moves to boost overseas production could keep it in the running. The company's sales in China jumped 32 percent last year to 876,747 units, making it the top seller there. It is also building a new factory in India, another market with tremendous potential.

[kaisen]

With GM's anticipated UAW contract negotiations and the probable aftermath being idled plants, GM may not have the units to sell to make up ground by the end of the year. Looks like 2007 (and probably 2008) belong to Toyota.

[Aerkuld]

I was talking about this with someone earlier and was comparing the current US automotive manufacturers to the British motorcycle manufacturers when the Japanese started selling motorcycles. I just hope the US manufacturers can see the parallel and react appropriately, although I don't see much of it at the moment.

[livi]

I predict that;

the Asians will take over the economy and

the Africans will take over in sports

But then, I am well known to be dead wrong.

[the]

Originally posted by kaisen
With GM's anticipated UAW contract negotiations and the probable aftermath being idled plants, GM may not have the units to sell to make up ground by the end of the year. Looks like 2007 (and probably 2008) belong to Toyota.

GM will never outsell Toyota again.

[kaisen]

Originally posted by the
GM will never outsell Toyota again.

GM does very well in China and fairly well in Europe, so that's a not a sure thing.

[M.D. Holloway]

Best idea is to break them up the way Ma Bell took to division years ago. Make one a sports car house, another a truck farm and so on. When all start owning their markets again (in 12 to 15 years) then merge. Simple formula really.

[arcsine]

Here is data from only the last 6 years; the domestics (GM and Ford) have lost sales and market share steadily while the Japanese makes (Honda, Toyota, Nissan) have steadily increased. I cannot find the equivalent charts that gives us data back to the 70's but I would hazard a guess this trend would be present there as well. If the domestics have not figured out by now they are building a product that buyers prefer not to buy, what makes us think they will in the future?

[Bob's Project]

Time to use the the war machine to slow them down and restore dominance to the Big Three.

[the]

Let's just hope "What's Good for Toyota is Good for America."

[kaisen]

GM was running 40% fleet sales (mostly daily rentals) in 2005 and has weened down to about 22% for 2007. DCX has taken up most of the slack at almost 50% fleet. However, Toyota has also increased their fleet/rental presence (If I recall correctly, now ~17%).

[Zef]

That's what happen when you can't build reliable and economic cars...!