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Is Second Place All That Bad? GM Down Plays Loss Of Number One Spot To Toyota

Agent009 submitted on 1/21/2009 Official Bell & Ross Timestamp: 11:41:11 AM

17 user comments | Category: Misc News | Source: | SOURCE: money.cnn.com

General Motors lost the title of world's largest automaker to rival Toyota Motor in 2008, according to sales figures released Wednesday by the troubled U.

S. automaker. It was the first time in nearly 80 years that GM did not sell the most cars in the world.

GM reported that global sales plunged 10.8% for the year to 8.36 million vehicles. That allowed Toyota to move ahead of GM with sales of 8.97 million vehicles worldwide.

GM executives tried to play down the significance of the company losing the title it had held for 77 years.



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Is Second Place All That Bad? GM Down Plays Loss Of Number One Spot To Toyota

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Agent009

"If everything seems under control, you're just not going fast enough."

— Agent009 (View Profile)


User Comments

1UAW

Well if you have been number one longer then many of us have been living it aint so bad. Lets se who will be number for the next 80 years aye?

— 1UAW (View Profile)

Posted on 1/21/2009 11:57:51 AM | reply to this comment | Votes: -2   

BigShow50

GM is lucky that their subsidary brands acutally did quite well outside U.S....otherwise they would be singing a much crappy tunes in terms of global numbers...Too bad, but it had to happend sometime!

— BigShow50 (View Profile)

Posted on 1/21/2009 12:47:33 PM | reply to this comment | Votes: 1   

BSBB

It doesn't necessarily matter how many cars you sell. What matters is how much money you make. For example, would you rather sell a million units with a profit of $1, or sell 500,000 units with a profit of $100. In the end (especially for the automakers) profit matters, not units sold.

— BSBB (View Profile)

Posted on 1/21/2009 1:15:10 PM | reply to this comment | Votes: 3   

StarSearch

true, but perception also matters.

For example, Lexus can lay claim to being the best-selling luxury brand in the US, but I think (and I may be wrong) Audi has a higher profit margin and is considered an afterthought here.

— StarSearch (View Profile)

Posted on 1/21/2009 1:19:59 PM | | Votes: 1   

BSBB

To put that into context: For the 12 months ended 12/31/07, GM had an operating profit of ($4.4 billion) (a loss). For a similar period (12 months ended 3/31/08 - Toyota's fiscal year), Toyota had an operating profit of around $2.2 billion. So, even though GM sold more units, they ended up losing money.

— BSBB (View Profile)

Posted on 1/21/2009 1:29:25 PM | | Votes: 1   

XYZZ

since toyota started actually making profits on the prius, rather than accepting small (?) losses on each unit, i don't believe there is a single model on which they lose money. now that they sell more than anyone else, and actually MAKE MONEY on each sale, it's no wonder they are rolling in dough! (current temporary operating loss notwithstanding.)

— XYZZ (View Profile)

Posted on 1/22/2009 6:42:19 AM | | Votes: 2   

dumpsty

Only those who make it to 1st place actually realize that 2nd place isn't really bad at all. Now, as Toyota takes the top sales spot, it'll have to duck all the "evil huge auto giant" flack that GM historically took. Being a smaller competitor is where the success is at, in today's financial environment. And a much smaller firm can do more and provide higher levels of quality. That's basically how Toyota Corp rose to its perceived levels.

— dumpsty (View Profile)

Posted on 1/21/2009 1:34:11 PM | reply to this comment | Votes: 2   

BSBB

It also helps to not have the UAW to hold you back.

— BSBB (View Profile)

Posted on 1/21/2009 1:45:39 PM | | Votes: 1   

1UAW

Ever hear of the JAW? Toyota got where they are today with cheap American labor in the south, while labor in Japan is about par with the Big 3. Fact is Labor mostly around the world is on par with the Big 3 in terms of auto making Germany has the Sthill Union Japan has the J.A.W Many Americans do not realize this because we are so brain washed into thinking good pay anf health car for the common man is bad.

— 1UAW (View Profile)

Posted on 1/21/2009 2:05:00 PM | | Votes: -2   

XYZZ

this is a gross oversimplification. if it were true, honda would be much more "successful" than toyota. and any of microsoft's competitors should also be more successful. but honda is not. (altho they do do well.) and MS's rivals are not. having deep, DEEP pockets for development gives a HUGE advantage over rivals. the ONLY thing in your statement that's true, is that whoever is #1 is a bigger target for sniping, whining, and complaining about.

— XYZZ (View Profile)

Posted on 1/22/2009 6:57:33 AM | | Votes: 2   

1UAW

1UAW

Ever hear of the JAW? Toyota got where they are today with cheap American labor in the south, while labor in Japan is about par with the Big 3. Fact is Labor mostly around the world is on par with the Big 3 in terms of auto making Germany has the Sthill Union Japan has the J.A.W Many Americans do not realize this because we are so brain washed into thinking good pay and health care for the common man is bad.

— 1UAW (View Profile)

Posted on 1/21/2009 2:05:56 PM | reply to this comment | Votes: -1   

hk4site

GM can not make money on car, just truck and suv's.

— hk4site (View Profile)

Posted on 1/21/2009 3:14:54 PM | reply to this comment | Votes: 0   

Type707

Not suprising that Toyota is on the number one spot. There were many factors that tarnished the GM name. The high cost of fuel for one and GM only stuck with one agenda: Trucks and SUv's

— Type707 (View Profile)

Posted on 1/22/2009 2:48:52 AM | reply to this comment | Votes: -1   

StarSearch

you reek of FAIL.

The only thing funny is your overbite.

— StarSearch (View Profile)

Posted on 1/22/2009 1:58:32 PM | reply to this comment | Votes: -1   

tango

Toyota's rise to the top can only man one thing. A fall to the lower ranks later. IF, of course, the current trend of cost-cutting that they are on does not stop. Toyota needs to stop trying to compete with the Koreans and accept its space as a line of vehicles that people are willing to pay a little bit more for that extra level of reliability and security. Recent models have not lived up well to that reputation, and sadly, I was victim of Toyota cost-cutting, an experience that I am not likely to repeat. I'd buy the GM model in any category before I even considered the equivalent Toyota.

— tango (View Profile)

Posted on 1/22/2009 9:59:23 AM | reply to this comment | Votes: 1   

1UAW

I agree with your statement about Toyota quality and proof of this is that fact consumers report dose not give them the automatic nod anymore for reliabilty.

— 1UAW (View Profile)

Posted on 1/22/2009 2:56:00 PM | | Votes: 0   

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