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General Motors Company (GM) Narrows Gap on Global Sales Crown

General Motors (NYSE:GM) headquarters in Detroit. Photo Credit: General Motors Company.

It’s been a solid year for Detroit’s Big Three automakers in the U.S and each has gained market share at the expensive of their Japanese rivals Toyota Motor Corporation (ADR) (NYSE:TM) and Honda Motor Co Ltd (NYSE:HMC). Ford Motor Company (NYSE:F) was the big winner halfway through the year; it increased U.S. market share from 15.7% to 16.5%. That doesn’t seem like a big jump, but a fraction of a percentage is a big deal in the auto industry and Ford’s gain was the most of any full-line automaker. When we look at global sales though, there’s a different winner for the first half of 2013.

General Motors Company (NYSE:GM)GM gains on Toyota
Toyota still ranks No. 1 in global sales for the first half of 2013, having sold 4.91 million units which is 1.2% fewer than last year. General Motors Company (NYSE:GM) came in just under its global rival at 4.85 million vehicles sold, and managed to top Toyota Motor Corporation (ADR) (NYSE:TM) in quarterly sales for the first time in over a year. Part of the reason is that domestic automakers are surging in the U.S. market, whereas Toyota’s sales declined 8.4% in its home market Japan – and that looks to continue.

“The decline in Japan will continue,” said Jun Nokuo, an analyst with researcher R.L. Polk & Co. in Tokyo., according to Automotive News. “It is an aging society and the population is shrinking. At the same time, the popularity of cars is declining because public transportation is easy to use.”

Another reason for Toyota Motor Corporation (ADR) (NYSE:TM)’s small slip in global sales was its territorial dispute in China that led to several quarters of drastic sales declines. Demand for Toyota’s vehicles in China has been slow to recover, and last quarter its sales failed to climb even a full percentage point. General Motors Company (NYSE:GM), Volkswagen, and even Ford Motor Company (NYSE:F) have all taken advantage of the Japanese decline in China and have witnessed their sales increase by double digits last quarter.

Some forget that this is a new development and General Motors Company (NYSE:GM) held the global sales crown for seven decades before Toyota Motor Corporation (ADR) (NYSE:TM) took the top spot in 2008. Since the recession, General Motors Company (NYSE:GM) has been more focused on fixing the direction and financial stability of the company; it has watched almost helplessly as its vehicle portfolio became the oldest in the industry. This is the exact point in time where General Motors Company (NYSE:GM) begins to change that with plans for the biggest refresh in company history – refreshing, redesigning, or replacing 90% of its vehicles by 2016 – which it hopes will help boost sales again.

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