GM Q2 sales fall 5% worldwide, trails Toyota

DETROIT -- Overseas markets bolstered General Motors' global sales in the second quarter. But in North America, sales fell 20 percent from the year-ago period.

GM reported its second-quarter global sales fell 5 percent. The decline reflects continuing economic pressures and labor disruptions in its largest market, the United States, which pushed North American sales down 236,000 units, GM says. Sales outside North America grew 10 percent, or 116,000 vehicles.

"Our latest outlook for the U.S. economy is for the industry to be in the mid to upper 14 million-unit range," said Mike DiGiovanni, GM's executive director of global market and industry analysis, during a conference call with analysts and reporters. "The reason for that is oil prices. That was the big thing that nobody saw coming back in January. It's contributed to weaker consumer confidence."

July is shaping up to be another difficult sales month in the United States, largely because of a lack of availability of small vehicles, DiGiovanni says. GM has added a third shift at its plant in Lordstown, Ohio, where the Chevrolet Cobalt compact is built. But DiGiovanni says competitors also are boosting production of their small cars to meet consumer demands. Still, GM is optimistic that by first quarter 2009 the United States will reach a trough in the housing crisis and the market will swing upward.

For the rest of this year, GM expects consumer confidence to rise gradually if oil prices level off, DiGiovanni says.

Stability is vital

"The most important thing with oil prices right now is stability," DiGiovanni says. "Consumers need to see them not continue to go up. It's most important that they stay stable in this $130 per barrel range. If it does, people start to adjust to it, and it reduces fear."

GM reported global sales of 2.28 million vehicles in the second quarter and global sales of 4.54 million vehicles through June, down 2.9 percent. That compares with Toyota, which sold 4.8 million global units through June.

GM's totals include sales through the Wuling brand in China, which sold 156,921 vehicles in the second quarter and 329,842 vehicles for the year to date.

Automotive News does not include Wuling vehicles because GM owns only 34 percent of the SAIC-GM-Wuling Automobile Co. joint venture, while Chinese partner Shanghai Automotive Industry Corp. owns 50 percent.

Deducting the Wuling totals would give GM 2,129,773 units for the quarter and 4,210,567 for the year to date.

GM says it remains on track to exceed 9 million global units for the fourth straight year. Sales outside North America rose by 209,000 vehicles during that period, GM said.

Chevy grows in Europe

GM's reported totals were spurred by growth in Chevrolet in central and eastern Europe, and growth in the Wuling and GM Daewoo brands regionally, says Jonathan Browning, vice president of global sales, service and marketing.

In Europe, GM sold 268,867 Chevrolet vehicles through June. Of those, about 180,000 were sold in central and eastern Europe, Browning says.

"The total industry was off by about 3 percent, but in central and eastern Europe it was up by 25 percent," Browning says. "So it's a very different picture there. Russia and eastern European markets were driving that growth."

Browning says pressures similar to those in the United States, such as weak consumer confidence, plague western Europe. Spain and Italy feel the most pressure, while there's been some growth in Germany, and the United Kingdom has held flat, he says.

"We don't see a major change in that profile in a market-by-market development as we go through the remainder of the year," Browning adds.

Chevrolet sales in the Asia-Pacific region grew to 82,129 units, up 26.6 percent from the second quarter of last year. Chevrolet sales in China were up 33 percent and in India rose 9 percent, GM said. The Wuling brand saw sales increase 35 percent through June in China.

The Buick LaCrosse ECO-Hybrid just began selling in China and is expected to be the first mass-produced hybrid sedan in China's mid-luxury segment.

In GM's Latin America, Africa and Middle East region, Chevrolet dominated sales, rising 17.6 percent to 308,379 units during the second quarter compared with a year earlier. The region was up 17.7 percent to 346,085 units in that period.

Those gains help to slightly offset GM second-quarter sales in North America, which fell to 963,929 units from 1.2 million in the second quarter of last year.

Overseas strength

GM reported sales of 2.28 million vehicles in the second quarter, down 5 percent. GM reported sales of 4.54 million vehicles through June, down 2.9 percent. That compares to rival Toyota which sold 4.8 million units through June.

GM's totals include sales through the Wuling brand in China, which sold 156,921 vehicles in the second quarter and 329,842 vehicles year to date.

Automotive News does not include the Wuling vehicles because GM owns only 34 percent of the SAIC-GM-Wuling Automobile Co. joint venture, while Chinese partner Shanghai Automotive Co. owns 50 percent.

Deducting the Wuling totals would give GM 2,129,773 units for the quarter and 4,210,567 for the year to date.

GM says it remains on track to exceed nine million units for the fourth consecutive year. Sales outside North America rose by 209,000 vehicles during that period, GM said.

GM's reported totals were spurred by growth in Chevrolet in central and Eastern Europe, growth in the Wuling and GM Daewoo brands regionally, says Jonathan Browning, vice president of global sales, service and marketing.

In Europe, GM sold 268,867 Chevrolet vehicles through June. Of those, about 180,000 were sold in central and Eastern Europe, Browning says.

"The total industry was off by about 3 percent, but in Central and Eastern Europe it was up by 25 percent," Browning says. "So it's a very different picture there. Russia and Eastern European markets were driving that growth."

Browning says that pressures similar to those in the U.S., such as weak consumer confidence, plague Western Europe. Spain and Italy feel the most pressure, while there's been some growth in Germany and the United Kingdom has held flat.

"We don't see a major change in that profile in a market by market development as we go through the remainder of the year," Browning added.

Chevrolet sales in the Asia-Pacific region grew 26.6 percent to 82,129 units compared with the second quarter of last year. Chevrolet sales in China were up 33 percent and in India rose 9 percent, GM said. The Wuling brand saw sales increase 35 percent through June in China.

The Buick LaCrosse ECO-hybrid just began sales in China and is expected to be the first mass-produced hybrid sedan in China's mid-luxury segment.

In GM's Latin America, Africa and Middle East region, Chevrolet dominated sales for GM. Chevrolet sales rose by 17.6 percent to 308,379 units during the second quarter compared to a year earlier. The region was up 17.7 percent to 346,085 during that time period.

Those gains help to slightly offset GM second-quarter sales in North America, which fell to 963,929 units from 1.2 million in the second quarter of last year.




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