GM Executive Touts Global Sales Lead,and fires back at Automotive News.

[lam]

General Motors Corp's top global sales and marketing executive only gloated a little when he gave the company's employees a pep talk Friday about holding off Toyota to retain the title of World's largest auto company.

In a posting a GM's internal computer network,John Middlebrook, vice president of global sales,service and marketing,used the victory to tell all 274,000 workers to stay focused on the company's turnaround efforts.

Let me say that i like to win, Middlebrook wrote in the posting obtained by the Associated Press.And I know you do too.We still have most of 2008 in front of us,and we will fight hard for every sale.

Solid sales growth in emerging markets gave GM its narrow victory over Toyota in 2007 global sales race , allowing the Detroit automaker to keep its top spot for the 77th year.

Automotive News, an industry trade publication,disputed GM's claim to victory on Thursday,saying that the company improperly counted sales from a Chinese joint venture.

The weekly magazine said on its Web site that GM includes in its total 516,435 Wuling brand vehicles in China , but it owns only 34 percent of the Chinese company that produces them,SAIC-GM-Wuling Automobile Company

GM has said it owns a majority of legally available shares of the company, so counting the Wuling sales is legitimate.

They are now offcially able to be included.There was some noise around that last year, but these are legitimate sales,Mike DiGiovanni,GM's executive director of global market and industry analysis said on Wednesday during a conference call with reporters and industry analysts.

Middlebrook said in his message that the global auto industry is growing rapidly,and GM is in position to take advantage of it.

Remember that we are in a marathon, not a sprint.I appreciate all you are doing to support our efforts to transform GM for long-term growth he wrote.More at the link:http://biz.yahoo.com/ap/080125/gm_toyota.html?.v=1

[zete]

Doing business in China isn't like the rest of the world. I doubt any foreign company can own a majority stake in a Chinese firm, but to do business in China many have to do it via cooperatives. So this does make sense to claim the numbers if GM can't own a majority stake, even though they'd obviously like to.

[mbukukanyau]

Does it matter really? GM needs to focus on products and profit, and that will help them keep this title. What matters most is that GM has growth on its side, based of Korea GMDat, its helping growth in Europe and Asia and other emerging markets. Toyota has a better reputation, but GM has the pricing advantage. Make a better product for lower prices, and Toyota is toast. GM has also ignore Hilux and 4 Runner which are huge for Toyota. Bring a product that can take on Tacoma/Hilux and 4 Runner Range, on a global scale.


What I would like to see is a concerted effort to gain a foot hold in Japan itself. Its a huge market, and without sales there, they will never win.
How can this be done, you ask? Buy off Suzuki, I say

[GM-Joe]

GM has said it owns a majority of legally available shares of the company, so counting the Wuling sales is legitimate.

Majority wins.

Someone must have a majority and someone must be accounted for the unit built and sold, the majority stake holder is the one who should count the units for.

Autonews.com is an excellent resource, but they did the same thing last year, saying GM should not get credit because their share is below the 50% industry standard. As Zete above said, manufacturing and marketing products is different in China, because it has to be through a local partnership.

[ericmvest]

I had lunch with John Middlebrook and his wife a few years ago. Both he and his wife were very nice people. I think he has a valid point and I believe General Motors' sales statistics.

[AMERICA 123]

What GMs referring to is but one part of a legitimate defense of their legitimate title.

In China , an outside OEM can only own up to 49.9% of a joint venture.

GMs % (very close approx) is 34/49.9 = 68.14% of what they or anybody else can own.

[skylark68]

Does Toyota have a cooperative partner in China? Curious.

[ChevroletRevived]

Originally Posted by zete

Doing business in China isn't like the rest of the world. I doubt any foreign company can own a majority stake in a Chinese firm, but to do business in China many have to do it via cooperatives. So this does make sense to claim the numbers if GM can't own a majority stake, even though they'd obviously like to.

Yup, things are different in China; not the same standards and way of doing business as the rest of the world. These numbers are valid to include in GM's total. Interesting comments by the GM executive though, saying it's a "Marathon, not a sprint". I wholeheartedly agree. Sounds like a candidate I know....

[T-Type]

Originally Posted by skylark68

Does Toyota have a cooperative partner in China? Curious.

I believe they have to. That's the only way to get in. You have to buddy up with a local.

[ChevroletRevived]

Originally Posted by T-Type

I believe they have to. That's the only way to get in. You have to buddy up with a local.

Yeah, that's communist China for you. They won't let foreign companies completely buy up theirs either. Like you said they have to partner up with a local company to do anything.

[SaabKing]

Originally Posted by skylark68

Does Toyota have a cooperative partner in China? Curious.

I think it is F.A.W.

[jzchev28]

i think what they are saying is
GM owns 34%
china owns 30%
someone else owns 20%
and the remaining 16% someone else owns or is publicly traded?

in that way GM is the majority owner..

i could be totaly wrong on this but that is my guess

[SNO]

I thought GM management said the title didn't matter? Or is that only when they were behind in sales?

[A Bum In A Bus]

Automotive News needs to take a seat and shut up, they have pushed Toyota feverishly for years now, in their eyes Toyota can do no wrong. Automotive News has not been a friend of the American industry for some time now, I could give a hoot and hollar what they think.

[chevydlrmn]

Originally Posted by skylark68

Does Toyota have a cooperative partner in China? Curious.

awesome, that's what I was wondering.