Toyota (NYSE:TM) has enough problems. It lost its No.1 place in the Consumer Reports reliability survey. It had to recall several thousand of its cars in Japan. It trades near its 52-week low.
According to Bloomberg "GM (NYSE:GM) sold 7.06 million vehicles through September, taking a lead of 10,000 units over Toyota's 7.05 million, the two companies said in separate statements. At the end of the first half, Toyota led by 39,000 vehicles. "
Toyota loyalists might well ask what happened. GM is doing well in South America and holding it own in Europe. But, to a large extent the biggest US car company has built a China strategy which puts it in the lead in that market neck-and-neck with VW.
But, most important, GM has stopped its sales slide in the US. In each of the last two months sales have been flat to slightly up, and it appears that its new models are catching on. Its crossovers are selling especially well as are its new and more fuel-efficient sedans.
With a new UAW contract under its belt, GM now has a chance to build cars in the US for about the same cost as Japanese rivals. GM may not only sell more cars. It might also make money on most of them.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
10-22-2007 @ 10:20AM
Bill said...
Just had my Lexus serviced. They charged me over $200 just for an oil change, filter, and lube. Also called it 10,000 mile service and changed out an a/c filter also. This is rediculous! BMW gouges it's customers on service. Did not realize Lexus does also.
Incidently, my lexus does not compare to our escalde. GM has it all over toyota corp.
10-22-2007 @ 10:56AM
Robert said...
GM probably has the best fuel metering computer on the market. Toyota can't compete with GM on V6 and V8 fuel mileage.
10-22-2007 @ 11:05AM
vcs745 said...
With Merrill Lynch upgrading GM stocks to "buy" and Berar Sterns to "less than performing" I do believe that Steans will eat crow on this one and their customers will loose out on very good stock buys....Look for GM stocks to hit $55 to $58 by the end of the year.