GM expects non-U.S. sales to increase to 60-percent
General Motors' analysts predict that the automaker will sell approximately 9.2 million vehicles worldwide this year. According to Rick Wagoner, over 60-percent of those vehicles will be sold outside the U.S. market.
That percentage has already been reached in the first quarter of 2007, primarily stoked by the increase in sales to China, a market that has no where to go but up.
GM hopes that their current sales trajectory will soldier forward, but not at the expense of market share at home. Considering that the General sold 9.55 million vehicles in 1978 – its best year ever – the automaker is hoping to relive past glories in 2007. Whether its turnaround is fueled by Stateside sales or those garnered in foreign markets is irrelevant, but GM hopes that things won't get worse on its home turf.
[Source: Detroit News]
Reader Comments (Page 1 of 2)
far jr 11:12AM (5/05/2007)
A good portfolio has diversity. Having sales spread across the globe will help GM weather any slow downs in the US economy. GM is #1 in China aren't they? To be #1 in one of the most booming automotive markets is certainly good news.
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Barney 11:27AM (5/05/2007)
GM is loosing their market in the US. Increased market elsewhere can only be a benefit. Even though the USA is a vast market place, the remainder of the world is even larger. This versatility is the only way a manufacturer can survive.
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Derek 11:32PM (5/05/2007)
Wow, 9.55M in '78? Back when GM's US market share was about 50%? That's almost 400,000 US sales per month!
This is very good for GM and I'd expect their overseas sales to go past 60%, long-term. The US may be a rich, car-happy country, but I doubt that we account for 40% of the $$$ spent on new cars.
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Devin 11:58AM (5/05/2007)
It won't be long before people in the US realize that GM doesn't make the same crap they used to. To be honest, GM has only had really good stuff out for maybe 2-3 years (minus the original Corvette..and even then, the C6 is the one that really gained respect) So, give it another 2 or 3 years and GM should be really turning things around. This year will be a blockbuster year for them. The new CTS, updateded STS, Malibu, Enclave, Astra, G8, Vue, Aura Greenline, Tahoe/Yukon hybrids
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Petey 12:51PM (5/05/2007)
They are selling less cars in USA.. so, of course their percent of cars sold world wide will go up.. thats how percentages work.
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LaughingTooHard 7:33AM (5/06/2007)
Talking in passing to people who can actually afford to buy a car and not just talk about it, those who are buying high end imports, are still not considering GM or Ford. Funny how the guys who drive X5s, AMG 55s and 750s wouldn't think of buying any other truck but a F150, Silverado or maybe a Cadillac, eh? That will not help sales as incomes and status increase world wide.
Now for the rest of the normal buyers, people who drive a Nissan, Honda and Toyota car, they are mindlessly stuck on imports being better. Maybe for a truck or SUV they add in the American makes but for a car or sports car, they don't even consider what else is out there.
The girl who wants something samller than her 05 Explorer was looking at CR-Vs and Highlanders, until I showed her the new Vue and Acadia. She was impressed enough to want them instead and even more impressed when she compared prices.
American auto makers need to make the hard cut into making the under 30 age group want their cars. The pretty, stylish receptionist wouldn't even look at anything but a Scion tC or Civic Si coupe. The Cobalt may be a better value and performer but from "Hey look at MY car" group, it might as well not exsist. And from Ford? Well the Mustang is a little "old school" for her modern tastes. Remember we are talking people who spend 50% of their montly income on clothes, shoes and entertainment.
That the last part of the equation for GM/Ford/Chrysler they need to make cars the younger crowd want: Ones that get good gas miliage, lots of interior toys and tight suspensions. Horsepower is almost an afterthought. Most of all, they want envy of their peers. Do you think a 20 something guy who is struggling with a budget wants a practical Escort? Nope he buys a A4 in red and loves being poor.
My office is filled with fresh faced 1-3 years out of college kids and with the rare exception of a handed down Taurus or Saturn, they are all new imports - BMWs, Minis, VWs, Hondas, Toyotas and Nissans. Some bought for price but most are paying $300,$400,$500 even $600 a month for a car they want to be seen in.
The rest of the world is a bigger market and they have respect for American companies who deliver on value but eventually that will give way to what the Japanese have mastered: Making a car a "want to be seen in" not a "I need to go from here to there" or "I still remember the war" sentiment.
For all the talk about relibility, most people buy imports for the "Check me out in hot new import" vibe rather than the "Best Buy" or "Most Reliable"
Factoring in this market is what will drive GM back to the top. The imports will make make the niche cars for the fanboyz and gyrls but most people want a car with no guilt. And despite with GeeDoubleYah has done the American name in the Global Market, we are still a pretty guilt free purchase.
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rrr 2:28PM (5/05/2007)
#4 "To be honest, GM has only had really good stuff out for maybe 2-3 years (minus the original Corvette"
TOTAL B.S. and everyone knows it, GM always made total crap.....and now according to you and to all GM fan boys a.k.a. car enthusiasts they started making great cars.....Funny how they started making great cars at the very same time they nearly died.
I wrote this many times before here but if gas once again will reach high 3's or 4's GM will be DONE. And any company that within 5 years is not addressing the problem that has nearly killed it only few years ago can not survive.
GM is run by idiots from top to bottom, Lutz is a perfect example.
Dude, i've driven Toyota and Honda, believe me their cars are not that great, it's that Detroits are terrible.
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egs 2:46PM (5/05/2007)
GM's GMAC branch is losing its but. check the WSJ for more info.
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BOB 3:10PM (5/05/2007)
GM IS GETTING READY TO SAY TO THE UNIONS --
"WE HAVE THE REST OF THE WORLD TO MAKE MONEY --IF YOU WANT US TO LOSE HERE, LET'S LOSE YOUR JOBS AND IMPORT MORE CARS"
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whofan 4:28PM (5/05/2007)
"GM is run by idiots from top to bottom, Lutz is a perfect example."
Lutz is a genious like it or not. Toyota sucks! I went to a local car dealer today and saw a used Camry parked next to a used Impala. The Camry looked like shit inside and out compared to the Impala.Both cars were the previous models to the current ones.
I can`t see the infatuation people have with Toyota?
All I can say is someday people will wise up, so Toyota better enjoy the good times while they last.
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airport krishna 6:45PM (5/05/2007)
#4 - It will be very long before people realize anything different, if ever, mainly because people don't care. GM's made themselves irrelevant.
Consumers aren't as dumb as GM assumed for many years.
Toyota sells everything through 1600 dealers. GM has 13,000.
Toyota's always talking about what more they can do for customers. GM worries about shareholders and Wall Street, worldwide investor relations and pension funds.
The more GM got successful the more their management hung out with their NY bankers. The more successful Toyota becomes the more they integrate themselves into local U.S. communities and put advanced technology on the street.
Arrogance and privledge have their cost. Even if technically GM is improving, nobody really cares... 30 years of abusing customers takes a toll, especially when their management is still so block-headed.
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tom 9:09PM (5/05/2007)
Look around you next time on the freeway, look how many are GM cars. Here in Minnesota, it seems like more than half the cars on the roads are GM. Gm is not going to go out of business ant time soon. If Toyota was the only car manufactor left, our driving experieces would be pretty dull. I think I would ride a horse instead.
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George Krpan 11:34PM (5/05/2007)
A good time to buy GM stock.
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Barney 11:43PM (5/05/2007)
"If Toyota was the only car manufactor left, our driving experieces would be pretty dull"
Other then the Corvette, what does GM produce that is exciting. Surely not a pickup truck.
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ToMiTa 5:09PM (5/06/2007)
Remember that the Tundra only recieved a 4 star crash rating while the Chevy and GMC GMT900's recieved 5 stars, not to mention the flimsy front ends that fall apart on the Tundras
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Barney 3:15AM (5/06/2007)
14. Remember that the Tundra only recieved a 4 star crash rating while the Chevy and GMC GMT900's recieved 5 stars
This year!
"not to mention the flimsy front ends that fall apart on the Tundras"
Care to explain?
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ToMiTa 10:05AM (5/06/2007)
"not to mention the flimsy front ends that fall apart on the Tundras"
Care to explain?
Glad to.
In 2005, Toyota recalled 775,000 Tundra and Tacoma pickups, and the Sequoia and 4Runner SUVs because of ball joint problems that could lead to suspension failure.
This is not to say that Toyota trucks are lousy, it just points out that they are not as tough as claimed.
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Bob 10:53AM (5/06/2007)
wow gm just wake up lol, dude toyota already developed the other market and they are now attacking north america. so gm is suppose to do the inverse....
http://mininova.wordpress.com/
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tom 11:32AM (5/06/2007)
Barney,
Some of the new Saturns are excitng new cars: Aura, Sky, Outlook and Vue.
Buick: Lucerne and Enclave. Lucernes are not just an older person car anymore. I saw some pictures of Lucernes at SEMA that would be the envy of many younger people.
Cadillac: the new CTS looks very exciting. And Cadilliac has stepped it up on all their vehicles.
Pontiac: Solstice and G6 (highy underestimated car). The new G8 looks fabulous.
GMC: Arcadia and Yukon. I see a lot of new Yukons on the road. IMO the best looking large SUV of any brand (especially the Denali version). Even better than Escalade and Tahoe.
Chevy: I see alot a Impalas on the highways. I must admit the Monte Calo doesn't do anything for me. The new Camaro should be a hit if they ever start building them. Of course the new Corvettes are great.
Chevy and GMC: What's not to like about the new pickups. rugged on the outside and luxurious on the inside. what a combination.
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Barney 12:44PM (5/06/2007)
NA car makers may not be making small fuel efficient cars if they can sell bigger ones According to the NHTSA, bigger vehicles will not have to be fuel efficient and no balance required to make them. GM & Ford will kill themselves if they think the market for gas guzzlers is big enough to strive on.
Personally I like the Impala, but who's conning who? It is not a better car then Toyota's Camry and it's just a matter of personal taste. *ToMiTa you better do some research if you want to downgrade any particular vehicle. Ford has had exploding rear springs and GM.s A-Frame always need attention. There are vehicles that eat brakes, rust prematurely, blow head gaskets and no one can say one specific manufacturer is responsible.
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