GM sees sales soar overseas, but continue struggling at home

[davidlane]

Worldwide, U.S. automaker loses this round to Toyota

General Motors Corp. set sales records outside the United States in the first half of 2008, but was dragged down by the company's struggling home market, underscoring how critical it is for GM to successfully execute its North American turnaround.

http://www.freep.com/apps/pbcs.dll/a...807240368/1014

So far this year, North American sales account for 42% of GM's global sales, down from 48% in the first half of 2007.

In the second quarter of this year, GM said Wednesday, 65% of its sales occurred outside the United States.

In GM's Asia-Pacific region, sales rose 14.6% in the second quarter to 386,980. GM's vast Latin America, Africa and the Middle East division posted a 17.7% increase for the quarter to 346,085. And GM Europe, which includes the booming Russian market, grew 2.5% to 589,700.

Booming emerging markets in Brazil, Russia, India and China all posted double-digit sales gains for the quarter.

Russian sales rose 34% to 920,000 vehicle sales in the quarter, Brazil rose 29% to 759,000, India was up 13% to 509,000 and China rose 14% to 2.5 million.

Despite the growth in emerging markets GM still isn't profitable and it needs to be, said Michael Robinet, a market analyst at CSM Worldwide.

"The race to No. 1 is the biggest nonstory out there," Robinet said. "It doesn't matter. Your average consumer is looking at the product and the health of the company, not whether they sell the most vehicles."

[drew770]

GM could be hitting on all cylinders if they can just figure out what to do with the North American market.
Brand issues, too many underperforming models, too many dealerships, troubles at GMAC, & so many others.
It will take a forward thinking visionary to pull GM out of its funk. And IMHO I don't think Wagoner is that person.

[skylark68]

GM overseas isn't hampered by perceived second rate quality overseas as it is here. Some people still believe Toyota is the god of the automotive world in NA.

[HoosierRon]

GM still isn't profitable and it needs to be, said Michael Robinet, a market analyst at CSM Worldwide.

What would we do without analysts?

[prototype66]

sad but true.

[Blair1118]

I still like that 3-door Aveo in the pic.....

[A Bum In A Bus]

It's about what's in the countrys hip pocket as much as what is being offered for sale. Once the economy picks up so will General Motors auto sales, if by that time the new products are ready it can be magic, GM can knock the doors down. The Malibu, Cobalt and Aveo are signals the General is on the right road, just not quite far enough along.

WE NEED THE CRUSE YESTERDAY! That car alone could be the difference maker, it could be the door opener, and the Volt could literally blow the roof off.

Hey General, ready a midsize brawny pick-up that gets good gas mileage, America is still in love with their trucks, they simply cannot afford to run them.

[Bggriffi]

Originally Posted by A Bum In A Bus

WE NEED THE CRUSE YESTERDAY! That car alone could be the difference maker, it could be the door opener, and the Volt could literally blow the roof off.

Hey General, ready a midsize brawny pick-up that gets good gas mileage, America is still in love with their trucks, they simply cannot afford to run them.

I would definitely buy either now, and I would love to see a full size truck with decent mileage.

[The Law]

Gm just needs to sell great vehicles, align brands,a bring cars to the market quicker not display them until market ready.

Branding should be Chevy-GM Daewoo;GMC,Pontiac, Saturn (GPS);Caddy,Buick,Saab(CBS).That way they have Euro,Asian and American styling at all levels.Buick is and has to move from just selling to older people.

[tgagneguam]

...GM reported global sales of 2.29 million vehicles in the second quarter, a 5% decline from a year earlier. It lost ground to Toyota Motor Corp. in the companies' continuing battle to be the global automotive leader. Toyota reported preliminary second-quarter sales of about 2.41 million, up about 1.8% from a year ago. GM sold 4.54 million vehicles in the first half of the year, while Toyota's total rose to 4.82 million.

Industry analysts say the race for No. 1 in auto sales is not as important as winning loyal customers who can drive sustainable profitability, particularly in GM's home market of North America...

GM losing its sales crown to Toyota is absolutely important, but not because of the loss of bragging rights of the number one spot. Rather, passing the sales baton reflects that GM's current management, despite being six years into a turnaround that simply is not gaining traction in its largest/home market, still is not performing where they need to be. They don't have the right recipe for success, and the company is declining as a result. It's time to look beyond the borders of the kingdom for someone who can bring leadership back to a once proud American enterprise.

[camaro_freak]

Originally Posted by skylark68

GM overseas isn't hampered by perceived second rate quality overseas as it is here. Some people still believe Toyota is the god of the automotive world in NA.

booohooo.... I'm tired of this excuse.

GM let that this perception take hold and occur on their own. It isn't like some great force happened and it suddenly hit them in the face overnight. Imports have been improving with each redesign for DECADES. Imports have been slowly gobbling up the marketshare as a result. This didn't happen overnight either.

If GM would have taken the Japanse, then the Koreans, and soon the Chinese seriously, they wouldn't be in the mess there are in now.

GM needs to step up or ship out of NA entirely. Doing a half assed job isn't going to cut it anymore.

[Exploder]

Originally Posted by camaro_freak

booohooo.... I'm tired of this excuse.

GM let that this perception take hold and occur on their own. It isn't like some great force happened and it suddenly hit them in the face overnight. Imports have been improving with each redesign for DECADES. Imports have been slowly gobbling up the marketshare as a result. This didn't happen overnight either.

If GM would have taken the Japanse, then the Koreans, and soon the Chinese seriously, they wouldn't be in the mess there are in now.

GM needs to step up or ship out of NA entirely. Doing a half assed job isn't going to cut it anymore.

So GM fanboys exist, but Toyota ones don't?

[JonathanRohr]

Originally Posted by davidlane

Why does that image show dollar signs? If its german, shouldnt it show Euros?

[benroethig]

Originally Posted by Blair1118

I still like that 3-door Aveo in the pic.....

One more ring down the size ladder. Its the Matiz/Spark City car.

[ZillaZ]

I think it's a problem of brand sexiness. Most of the GM brands just aren't as sexy as BMW, Mercedes, AUDI, Lexus...etc (with exception for maybe Saab and Cadillac).

Now, there are lots of sexy products in some of the other brands... for example, the SKY is sexy as hell, but "Saturn" just doesn't have the brand sex appeal that BMW does... and when you're selling to consumers who own (or aspire to own) Gucci and Louis Vuitton products then it is hard to sell them a Saturn.

Sadly, it's an issue of our consumer culture that GM has to work against.

EDIT: I just wanted to add that I don't think it's an issue of actual quality. Lots of the import brands have horrible quality history: BMW and VW are particularly bad, although you wouldn't know it by talking to anyone but a mechanic. There is still an element of perception of quality with GM vehicles, but GM has addressed this problem in most of it's new vehicles over the past few years and will beat that obstacle far sooner and easier than brand sexiness.