Toyota revealed as world's biggest automaker thanks to GM's creative math
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AP
GM Exec Touts Global Sales Lead
Friday January 25, 1:42 pm ET
By Tom Krisher, AP Auto Writer
GM Exec Uses Global Sales Lead to Rally Employees Worldwide
DETROIT (AP) -- General Motors Corp.'s top global sales and marketing executive only gloated a little when he gave the company's employees a pep talk Friday about holding off Toyota to retain the title of world's largest auto company.
In a posting on GM's internal computer network, John Middlebrook, vice president of global sales, service and marketing, used the victory to tell all 274,000 workers to stay focused on the company's turnaround efforts.
"Let me say that I like to win," Middlebrook wrote in the posting, obtained by The Associated Press. "And I know you do too. We still have most of 2008 in front of us, and we will fight hard for every sale."
Toyota was not mentioned in his note, but Middlebrook did say "we beat our largest competitor in nine of the 10 largest markets in the world." The company said it won in all top 10 countries but Japan.
Solid sales growth in emerging markets gave GM its narrow victory over Toyota in the 2007 global sales race, allowing the Detroit automaker to keep its top spot for the 77th year.
Toyota said Thursday it sold 9.366 million vehicles last year globally, up 6 percent from 2006. That was about 3,000 vehicles fewer than GM's tally announced Wednesday -- 9,369,524 vehicles sold, up 3 percent from the previous year.
Automotive News, an industry trade publication, disputed GM's claim to victory on Thursday, saying that the company improperly counted sales from a Chinese joint venture.
The weekly magazine said on its Web site that GM includes in its total 516,435 Wuling brand vehicles in China, but it owns only 34 percent of the Chinese company that produces them, SAIC-GM-Wuling Automobile Co.
Automotive News said it follows industry practice by including sales of only majority-owned subsidiaries in an automaker's global total.
GM has said it owns a majority of the legally available shares of the company, so counting the Wuling sales is legitimate.
"They are now officially able to be included. There was some noise around that last year, but these are legitimate sales," Mike DiGiovanni, GM's executive director of global market and industry analysis, said Wednesday during a conference call with reporters and industry analysts.
Middlebrook said in his message that the global auto industry is growing rapidly, and GM is in position to take advantage of it.
"Remember that we are in a marathon, not a sprint. I appreciate all you are doing to support our efforts to transform GM for long-term growth," he wrote.
-Ok Mr. Nashville it seems GM has addressed this origional story. They touched on the fact that this came up LAST year. And their reasoning for counting the sales in 2007. You know China is a communist country and maybe the nation owns part of Wuling or won't allow an American company to own more than a certain. Again I was throwing out some options as to why this may have happened because I'm humble enough to understand that I don't know everything that happens in GM accounting. Maybe you and Standard & Poors do but I digress.
GM Exec Touts Global Sales Lead
Friday January 25, 1:42 pm ET
By Tom Krisher, AP Auto Writer
GM Exec Uses Global Sales Lead to Rally Employees Worldwide
DETROIT (AP) -- General Motors Corp.'s top global sales and marketing executive only gloated a little when he gave the company's employees a pep talk Friday about holding off Toyota to retain the title of world's largest auto company.
In a posting on GM's internal computer network, John Middlebrook, vice president of global sales, service and marketing, used the victory to tell all 274,000 workers to stay focused on the company's turnaround efforts.
"Let me say that I like to win," Middlebrook wrote in the posting, obtained by The Associated Press. "And I know you do too. We still have most of 2008 in front of us, and we will fight hard for every sale."
Toyota was not mentioned in his note, but Middlebrook did say "we beat our largest competitor in nine of the 10 largest markets in the world." The company said it won in all top 10 countries but Japan.
Solid sales growth in emerging markets gave GM its narrow victory over Toyota in the 2007 global sales race, allowing the Detroit automaker to keep its top spot for the 77th year.
Toyota said Thursday it sold 9.366 million vehicles last year globally, up 6 percent from 2006. That was about 3,000 vehicles fewer than GM's tally announced Wednesday -- 9,369,524 vehicles sold, up 3 percent from the previous year.
Automotive News, an industry trade publication, disputed GM's claim to victory on Thursday, saying that the company improperly counted sales from a Chinese joint venture.
The weekly magazine said on its Web site that GM includes in its total 516,435 Wuling brand vehicles in China, but it owns only 34 percent of the Chinese company that produces them, SAIC-GM-Wuling Automobile Co.
Automotive News said it follows industry practice by including sales of only majority-owned subsidiaries in an automaker's global total.
GM has said it owns a majority of the legally available shares of the company, so counting the Wuling sales is legitimate.
"They are now officially able to be included. There was some noise around that last year, but these are legitimate sales," Mike DiGiovanni, GM's executive director of global market and industry analysis, said Wednesday during a conference call with reporters and industry analysts.
Middlebrook said in his message that the global auto industry is growing rapidly, and GM is in position to take advantage of it.
"Remember that we are in a marathon, not a sprint. I appreciate all you are doing to support our efforts to transform GM for long-term growth," he wrote.
-Ok Mr. Nashville it seems GM has addressed this origional story. They touched on the fact that this came up LAST year. And their reasoning for counting the sales in 2007. You know China is a communist country and maybe the nation owns part of Wuling or won't allow an American company to own more than a certain. Again I was throwing out some options as to why this may have happened because I'm humble enough to understand that I don't know everything that happens in GM accounting. Maybe you and Standard & Poors do but I digress.
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-Ok Mr. Nashville it seems GM has addressed this origional story. They touched on the fact that this came up LAST year. And their reasoning for counting the sales in 2007. You know China is a communist country and maybe the nation owns part of Wuling or won't allow an American company to own more than a certain. Again I was throwing out some options as to why this may have happened because I'm humble enough to understand that I don't know everything that happens in GM accounting. Maybe you and Standard & Poors do but I digress.
GM is addressing the story by trying to redefine what “majority” means. The disingenuous thing about it is that GM never had a problem with the “old” definition until it got in the way of their claiming they were still the world’s no. 1 automaker.
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From: Melbourne, Australia
It's a pissing contest.
It means a lot to GM as it heralds their 100th anniversary as a manufacturer. However, even as a GM tragic, I dare say it's just an irrelevant statistic. It means little when you consider what makes a successful company. Whichever way you look at it, Toyota is profitable, continually growing, and has the most loyal of return customers. I wish GM were just as successful, irrespective of sales figures.
It means a lot to GM as it heralds their 100th anniversary as a manufacturer. However, even as a GM tragic, I dare say it's just an irrelevant statistic. It means little when you consider what makes a successful company. Whichever way you look at it, Toyota is profitable, continually growing, and has the most loyal of return customers. I wish GM were just as successful, irrespective of sales figures.
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Joined: Aug 2007
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From: New York
Actually....
In all, 63% of GM customers returned to buy another GM brand product during the year, compared with an average of 55% for the industry.
Meanwhile, 57% of Toyota brand purchasers went back for seconds, compared with 45% for the industry.
Meanwhile, 57% of Toyota brand purchasers went back for seconds, compared with 45% for the industry.
And they're getting better all the time. The turnaround isn't yet complete - but when it is, I don't think we'll recognize GM as the one from 20 years ago...
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From: Ontario
I have to agree with Robert here. It doesn't matter why GM owns only a minority share of Wuling ... the fact is that they do. If the standard procedure is to count only majority-owned companies then Wuling shouldn't count.
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From: Motor City
because the govt owns 51%, allowing only 49% to be owned by actual investors...GM is the majority shareholder as far as actual decision making is concerned
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From: Michigan's left coast
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From: Yadkinville, NC USA
Toyota is selling that many cars AT A PROFIT... a tidy one too.
Toyota is generating enough cash in domestic sales alone each year to buy controlling interest in GM.
I'm afraid that it won't be a race to "most profitable" for a LONG time.
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From: Ontario
Perhaps if GM wanted to count those sales it could buy out the other minority shareholder to get itself up to the maximum-allowed 50-50, just like it does with GM-SAIC. Then it would be legitimate to include them.
It's these statements of questionable facts that is not helping GM public image. They're always complaining how there's a perception gap, or a credibility gap, or whatever with the public. Well, when you fudge numbers to try to present a reality that doesn't exist, people are going to call you on it and it's going to taint everything that you say. It's similar to how GM tries to brag about selling more models, not cars, that get 30mpg than anyone else. It's a distortion to try to make them seem like they have achieved something they have not.
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I suspect that if Toyota were reporting its sales from a China sub it didnt' own 50% of, GM would be crying foul for anyone who would listen.
Things may change as everyone starts reporting they "official" sales for 2007 but suffice it to say, almost every majore manufacturer has sub interests in China at this point and, to the best of my knowledge, none of them but GM is trying to include them if their global sales figures when they own less than 50% (which I think everyone does).
There has to be a standard that EVERYONE follows, whether it's convenient or not, if there isn't, then the figures become nothing more than marketing by another name.
Things may change as everyone starts reporting they "official" sales for 2007 but suffice it to say, almost every majore manufacturer has sub interests in China at this point and, to the best of my knowledge, none of them but GM is trying to include them if their global sales figures when they own less than 50% (which I think everyone does).
There has to be a standard that EVERYONE follows, whether it's convenient or not, if there isn't, then the figures become nothing more than marketing by another name.
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From: Southern Indiana
I understand why GM owns 34% ... I'm saying it doesn't matter. GM owns less than a majority of the company, so it shouldn't count its sales. Period.
Perhaps if GM wanted to count those sales it could buy out the other minority shareholder to get itself up to the maximum-allowed 50-50, just like it does with GM-SAIC. Then it would be legitimate to include them.
It's these statements of questionable facts that is not helping GM public image. They're always complaining how there's a perception gap, or a credibility gap, or whatever with the public. Well, when you fudge numbers to try to present a reality that doesn't exist, people are going to call you on it and it's going to taint everything that you say. It's similar to how GM tries to brag about selling more models, not cars, that get 30mpg than anyone else. It's a distortion to try to make them seem like they have achieved something they have not.
Perhaps if GM wanted to count those sales it could buy out the other minority shareholder to get itself up to the maximum-allowed 50-50, just like it does with GM-SAIC. Then it would be legitimate to include them.
It's these statements of questionable facts that is not helping GM public image. They're always complaining how there's a perception gap, or a credibility gap, or whatever with the public. Well, when you fudge numbers to try to present a reality that doesn't exist, people are going to call you on it and it's going to taint everything that you say. It's similar to how GM tries to brag about selling more models, not cars, that get 30mpg than anyone else. It's a distortion to try to make them seem like they have achieved something they have not.
GM counts it because they have the MAJORITY CONTROLLING SHARES.