GM Takes Desperate Actions As Toyota Closes In On Number One Spot

On the verge of ceding its crown as America's best-selling car company, General Motors Corp. announced further production cuts as well as sweeping new incentives on many 2008 models -- a reversal of recent strategy and a fresh sign of how badly rising gasoline prices are slamming auto makers.

GM, Ford Motor Co. and Chrysler LLC have been trying for over two years to back away from heavy incentives, which eat into profit margins and tarnish brands in the eyes of some consumers. But a worsening of the slump in car and light-truck sales this month is forcing the Detroit companies to go all out to halt sales declines.

Through the first half of June, normally a strong period, U.S. auto sales were running at an annualized rate of about 12.5 million vehicles, according to J.D. Power & Associates. It was the lowest level for June in decades and a huge drop from the year-ago rate of 16.3 million vehicles.

For GM, the June swoon has an added peril: Without a sales surge in the next few days, it risks losing its U.S.-sales crown to Toyota Motor Corp. for the month. That would be a first and a powerful symbol of Detroit's long decline.



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Maverick2020 - 6/24/2008 12:35:09 PM

+6 Boost

GM was down 100,000 Y/Y in May and Toyota was within 12,000 units of beating GM. Unprecedented.

I'm surprised that no one caught that, and I am sure that GM will do whatever it takes to make sure that Toyota does not beat them in June.

Losing to Toyota here in the US would be a PR disaster for GM.

Bored - 6/24/2008 1:49:24 PM

+6 Boost

@ Maverick,

You can add Ford and Chrysler to the disaster list as well. IMO, this disaster started a few decades ago with Detroit's "Big 3" and they have no one to blame but themselves regardless of what Toyota (or any foreign brand for that matter) does.

hao420 - 6/24/2008 6:40:19 PM

-1 Boost

Yea, GM going down....

1BadMan - 6/24/2008 1:46:13 PM

+2 Boost

GM losing is going to happen. And it will be big news. I can't stand GM, but it is very sad to see what has become of the company. Arrogance was the company motto.

Caraficionado - 6/25/2008 1:50:58 PM

+2 Boost

I agree, specially by not hearing what buyers really wanted. Now, what are Pontiac and Buick still doing out there?

TexLandRover - 6/24/2008 2:23:20 PM

-1 Boost

Its time to put limits on how many vehicles use American roads. Too much congestion & pollution with autos as it is, we've reached saturation levels. Lets wake up to the fact we have limited budgets to build new roads (plus) we cannot even maintain what we already have. So the reality is tough to swallow, but restricting automobile volume is the answer. Folks won't like it, but that is just the way it is. Also, guess the $10 a gallon gas cost will put this theory into play by next year or so.

Porschinator - 6/24/2008 8:43:03 PM

+3 Boost

Ummm...huh? So how is this relevant to the topic?!?

truckmen - 6/25/2008 4:56:35 AM

+3 Boost

texlandrover, you have to stop smoking pot! The automobile is not the enemy, the enemy is fossil fuel! There are alternatives but the government will not allow it!

85bmw745i - 6/24/2008 7:25:28 PM

+3 Boost

I agree. Toyota laid off people too at the tudra plant

sold2early - 6/24/2008 4:16:32 PM

+1 Boost

"Based on market prices, debt investors currently see more than a 70% chance that GM will default on its obligations sometime in the next five years, said Boaz Weinstein, co-head of credit trading at Deutsche Bank AG."

BigShow50 - 6/24/2008 8:13:30 PM

0 Boost

Even if GM somehow ramins to be number 1 by the end of the year. Interms of profits...there is not even a penny. As for Toyota profits may slightly decline for them too but high profits remains at the end of the day, barely putting a dent into Toyota's treasure chest. GM execs are a bunch of tarts...time for Rick "The DICK" Wagoner give up some of his $14 Million dollar salary to the company. As for Bobby boy "No Clue" Lutz...he should just lick the "nervous-sweat" off Rick Wagoner's balls, that's probably all he is good for at this point..LMAO!!!

truckmen - 6/25/2008 5:03:28 AM

+2 Boost

Could the fact that Toyota's are better on gas have an influence on why Toyota is gaining momentum? Chevy's guy has said some pretty dumb stuff like "nobody cares if the vehicle is good on gas" That is a PR nightmare! While Toyota markets there green image, it's no wonder Toyota is gaining. Chev has to make better more efficient vehicles to compete with Toyota.

truckmen - 6/25/2008 4:19:08 PM

+1 Boost

LOL,
I would rather that the big three would just make vehicles so good that we wouldn't look anywhere else, There is so much tech out there that would blow the doors off all the crap we currently have available. How do we get the companies and government to implement this tech? PML is a good example of what can be done.