Toyota tops GM global sales

Japanese automaker sold 2.41 million vehicles in the first quarter compared with GM’s 2.25 million.

General Motors Corp. fell behind rival Toyota Motor Corp. in the global sales race for the first quarter, dragged down by anemic U.S. vehicle sales and speed bumps elsewhere around the globe.

GM sold 2.25 million cars and trucks worldwide through March to Toyota’s 2.41 million vehicles, according to sales figures released Wednesday by each automaker.

The Detroit automaker’s global sales were down 0.6 percent in the first three months of 2008, an unusual decline for GM globally. Worldwide sales have been up in each of the last five quarters despite GM’s woes in North America.

The U.S. market was by far GM’s biggest liability, with sales down 10 percent, or more than 100,000 cars and trucks. That loss more than wiped out gains from record quarters in every other region around the globe, where combined sales were up 8 percent.

Toyota, meanwhile, posted a 3 percent sales gain in the first quarter worldwide, despite a 6 percent drop in the United States.

“We obviously want to win,” said Mike DiGiovanni, GM’s executive director of global markets and industry analyst. “We’d like to be No. 1 in sales at the end of the year and were going to compete hard for every sale to do that.”

The two auto giants have been in this closely watched global sales race since the beginning of last year, when Toyota first surpassed GM.

GM ended 2007 a sliver ahead of Toyota, selling 9.369 million cars and trucks worldwide to Toyota’s 9.366 million — a gap of a slim 3,000 vehicles.

Toyota said sales of Toyota, Hino, Daihatsu, Lexus and Scion vehicles increased 3 percent in the January-March period, the fourth quarter of the Japanese fiscal year. The automaker said sales in Japan were down, but exports and overseas production were higher in the quarter.

More of GM’s sales in the first quarter — 64 percent — were outside the United States than at any other time in GM’s history.

In many regions and countries, GM continued to rack up double-digit gains. Sales were up 20 percent in GM’s Latin America, Africa and Middle East region and up 6 percent in the Asia Pacific region.

Growth in Europe, however, slowed with sales up just 3 percent despite a 78 percent increase in Russia. Though GM gained in China, its growth there has been far outpaced by other automakers, including Toyota. Sales of GM brands in China, the world’s second-largest and fastest-growing auto market, last year increased 18 percent. Toyota’s increase: 62 percent.

GM also struggled with its global luxury brands: Saab, Cadillac and Hummer. Saab sales were down 12 percent, Hummer fell 15 percent and Cadillac broke even, helped by growth in Europe.

“The fact that emerging markets are growing is not a secret in this business anymore and everyone is going there,” GM’s DiGiovanni said about growing competition around the globe.

No relief in the next quarter

Increased competition is inevitable as the auto industry’s global reach grows, and those markets outside the United States still present the most potential for GM, said Jesse Toprak, senior analyst at online auto research site Edmunds.com.

“The focus from GM is not market share or being No. 1 — they’re focusing on profitability,” he said. “Growth outside of the U.S. is still promising, especially because there doesn’t appear to be much hope for growth in the domestic market.”

GM isn’t expecting relief in the next quarter. While the brutal first quarter actually beat GM’s internal expectations, the automaker expects the April-through-June period to be tougher than anticipated, DiGiovanni said. High gas prices, falling home sales and shaky consumer confidence will continue to be problematic, he said. GM still thinks the auto market will recover somewhat in the second half of the year.

GM shares increased 43 cents, or 2.1 percent, to $20.94, in Wednesday trading.

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