Sat, Jan 21, 2012 - Page 10 News List

GM regains title as top car seller in the world

Reuters, DETROIT, MICHIGAN, and TOKYO

General Motors Co regained its title as the world’s top-selling automaker from Japanese rival Toyota Motor Corp last year, but the US company faces a challenge to stay on top this year as Toyota rebuilds its disaster-struck business.

GM, bouncing back from bankruptcy less than three years ago, said on Thursday it had sold 9.026 million vehicles globally last year, up 7.6 percent from 2010, with its Chevrolet brand setting a sales record of 4.76 million vehicles.

The Detroit-based automaker’s return to the top slot comes after its 2009 taxpayer-funded bankruptcy restructuring allowed it to cut its spiraling legacy costs.

It also comes as Toyota’s sales fell an estimated 6 percent to 7.9 million vehicles last year, hit by severe production cuts following an earthquake, tsunami and nuclear crisis in Japan, and deadly floods in Thailand.

The Japanese automaker is ramping up production to rebuild depleted inventory and will add output capacity in emerging markets such as Brazil and China this year. However, analysts said it also faced stiffer competition as rivals step up their game.

“Toyota’s biggest problem is that even without the natural disasters, its sales weren’t exactly growing,” JPMorgan auto analyst Kohei Takahashi said.

“The ranking is not that important, but they need a convincing strategy to boost their sales,” he said, adding that Toyota was behind rivals such as Nissan Motor Co in rolling out small cars for emerging markets.

Toyota’s worldwide sales tally for last year included listed subsidiaries Daihatsu Motors Co and Hino Motors Ltd, and it put the carmaker just behind Volkswagen AG, which sold 8.16 million vehicles last year.

Toyota gave no forecast for this year for the group, but said it expected parent-only sales to jump 20 percent to a record 8.48 million vehicles this year. Daihatsu and Hino sold about 850,000 vehicles combined last year.

“Sales are important, to be first is important, but that’s not the most important thing for us,” Toyota spokeswoman Amiko Tomita said.

“Our priority No. 1 is to make cars people love, not to be the first in the world,” she said.

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