Toyota widens global sales lead over GM

  • By Tom Krisher and Yuri Kageyama Associated Press
  • Saturday, October 27, 2012 12:00pm
  • Business

DETROIT — Toyota has widened its global sales lead over General Motors after bouncing back from a series of natural disasters.

The company said Friday it sold 7.4 million vehicles globally in the first nine months of this year — 450,000 more than General Motors. While Toyota’s sales rose 28 percent in that period, GM’s rose 2.5 percent, to 6.95 million cars and light-duty trucks.

Toyota’s factories were hobbled by an earthquake and tsunami in early 2011, leaving it short of cars in the U.S. and other regions. But now the company has recovered, and is building and selling more vehicles globally. Germany’s Volkswagen AG is also seeing strong global sales.

GM is more concerned with profitable growth than the global sales race, spokesman Jim Cain said. Toyota has made similar statements, but executives concede privately that the crown is a matter of corporate pride for both companies. GM was the top-selling automaker for more than seven decades before losing the title to Toyota in 2008.

But Toyota faces a challenge in keeping its lead this year. Sales are falling in China because of a territorial dispute with Japan. Japan nationalized islands in the East China Sea that are also claimed by China and Taiwan. The move set off violent protests in China and a widespread call to boycott Japanese goods.

Toyota, which makes the Prius hybrid, Camry sedan and Lexus luxury models, had planned to sell 1 million vehicles in China this year. But the company no longer expects to reach that number. It has not given a new target.

In September, Toyota’s vehicle sales in China dropped to 44,100 vehicles, from 86,000 a year earlier. In August, Toyota sold 75,280 vehicles in China, down 15 percent from the same month last year.

Even if Toyota’s China sales fall short of 1 million, Nomura Securities Co. auto analyst Masataka Kunugimoto expects them to gradually recover to 900,000 vehicles for the year.

“We don’t expect this kind of drop to continue,” he said. “The Chinese market is still growing.”

Still, he sees GM and other non-Japanese manufacturers getting a sales boost as Chinese buyers avoid Japanese products.

Last year, Toyota’s production was hit by the earthquake and tsunami in northeastern Japan and then by flooding in Thailand. Its sales were also dented by massive U.S. safety recalls. That combination of problems dropped Toyota to No. 3 in global sales after GM and Volkswagen.

VW is closing in on GM after notching big sales gains in the U.S. this year. The maker of the Passat and Jetta cars sold 6.7 million light vehicles from January through September, up 9.7 percent from a year earlier. But VW’s challenge could fall short this year because Europe’s weak economy has hurt sales in that region.

GM also has problems on its home turf. Sales growth in the U.S. — its biggest market — is lagging. Sales are up 3.4 percent through September, far behind the 15-percent growth for the industry as a whole.

———

Business Writer David McHugh in Frankfurt, Germany, contributed to this report. Kageyama reported from Tokyo. Follow her on Twitter: www.twitter.com/yurikageyama

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Szabella Psaztor is an Emerging Leader. (Olivia Vanni / The Herald)
Szabella Pasztor: Change begins at a grassroots level

As development director at Farmer Frog, Pasztor supports social justice, equity and community empowerment.

Owner and founder of Moe's Coffee in Arlington Kaitlyn Davis poses for a photo at the Everett Herald on March 22, 2024 in Everett, Washington. (Annie Barker / The Herald)
Kaitlyn Davis: Bringing economic vitality to Arlington

More than just coffee, Davis has created community gathering spaces where all can feel welcome.

Simreet Dhaliwal is an Emerging Leader. (Olivia Vanni / The Herald)
Simreet Dhaliwal: A deep-seated commitment to justice

The Snohomish County tourism and economic specialist is determined to steer change and make a meaningful impact.

Emerging Leader John Michael Graves. (Ryan Berry / The Herald)
John Michael Graves: Champion for diversity and inclusion

Graves leads training sessions on Israel, Jewish history and the Holocaust and identifying antisemitic hate crimes.

Gracelynn Shibayama, the events coordinator at the Edmonds Center for the Arts, is an Emerging Leader. (Olivia Vanni / The Herald)
Gracelynn Shibayama: Connecting people through the arts and culture

The Edmonds Center for the Arts coordinator strives to create a more connected and empathetic community.

Eric Jimenez, a supervisor at Cocoon House, is an Emerging Leader. (Olivia Vanni / The Herald)
Eric Jimenez: Team player and advocate for youth

As an advocate for the Latino community, sharing and preserving its traditions is central to Jimenez’ identity.

Nathanael Engen, founder of Black Forest Mushrooms, an Everett gourmet mushroom growing operation is an Emerging Leader. (Olivia Vanni / The Herald)
Nathanael Engen: Growing and sharing gourmet mushrooms

More than just providing nutritious food, the owner of Black Forest Mushrooms aims to uplift and educate the community.

Molbak's Garden + Home in Woodinville, Washington closed on Jan. 28 2024. (Photo courtesy of Molbak's)
Molbak’s, former Woodinville garden store, hopes for a comeback

Molbak’s wants to create a “hub” for retailers and community groups at its former Woodinville store. But first it must raise $2.5 million.

DJ Lockwood, a Unit Director at the Arlington Boys & Girls Club, is an Emerging Leader. (Olivia Vanni / The Herald)
DJ Lockwood: Helping the community care for its kids

As director of the Arlington Boys & Girls Club, Lockwood has extended the club’s programs to more locations and more kids.

Alex Tadio, the admissions director at WSU Everett, is an Emerging Leader. (Olivia Vanni / The Herald)
Alex Tadio: A passion for education and equality

As admissions director at WSU Everett, he hopes to give more local students the chance to attend college.

Dr. Baljinder Gill and Lavleen Samra-Gill are the recipients of a new Emerging Business award. Together they run Symmetria Integrative Medical. (Olivia Vanni / The Herald)
Emerging Business: The new category honors Symmetria Integrative Medical

Run by a husband and wife team, the chiropractic and rehabilitation clinic has locations in Arlington, Marysville and Lake Stevens.

People walk along the waterfront in front of South Fork Bakery at the Port of Everett on Thursday, April 11, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Port of Everett inks deal with longtime Bothell restaurant

The port will break ground on two new buildings this summer. Slated for completion next year, Alexa’s Cafe will open in one of them.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.