General Motors is reporting global sales of 2.1 million units for the third quarter, which is down 11% from the same period last year. Through September of this year, GM has sold 6.7 million cars and trucks worldwide, putting the automaker further behind Toyota, which has sold 7.05 million units so far this year. The struggling U.S. market is a big part of GM’s sales woes, as 61% of the Detroit automaker’s sales came from outside of its home market. That’s up from 56% last year, but down from the 65% figure for the second quarter of 2008. VP of sales and marketing Jonathan Browning points out challenges in the global financial markets as a big problem for GM, but also mentioned that strong sales in emerging markets is helping to ease the sales burden.
Since GM has a serious cash crunch and merger talks on its hands right now, it likely doesn’t care much about a global sales race with Toyota. That doesn’t make Toyota’s accomplishment any less significant, though, considering how long the General has been on top of the global sales charts.
General Motors Corp. reported this morning it sold more than 2.1 million vehicles globally during the third quarter, down 11.4 percent from last year.
Through September, GM sold 6.7 million vehicles compared with 7.051 million for Toyota, which expanded its lead in a bid to become the world’s largest automaker.
Sales outside the U.S. accounted for almost 61 percent of GM’s global sales, up from about 56 percent last year, but down from a record 65 percent during the second quarter.
GM blamed continued economic pressures in the U.S. and growing pressure in Europe for drops in two regions.
Sales in Europe fell 12.3 percent while sales in North America dropped 18.9 percent.
Mike DiGiovanni, GM’s executive director of global markets and industry analyst, said sagging consumer confidence as opposed to a lack of credit fueled the U.S. decline.
“Consumers have been hit by a three-fold blow to the head,” he said, citing a drop in housing prices, ongoing financial market turmoil and low consumer confidence.
Globally, only two brands posted sales increases during the third quarter. Sales of China-based Wuling brands rose 21.9 percent while Korea-based Daewoo climbed 4.7 percent.
Hardest hit was the Hummer brand, which GM is considering selling. Sales fell 54.6 percent, the steepest decline of any GM brand.
“The recent challenges in the global financial markets, including credit tightening and the drop in commodity prices, have negatively impacted market demand,” Jonathan Browning, vice president, global sales, service and marketing said in a statement this morning. “However, our sales performance shows that we are continuing to take advantage of new emerging market opportunities and are meeting customer needs with fuel efficient products that offer compelling design and great value.”
