GM Sales Soar

First appeared on CNN Money

General Motors is poised to once again be No. 1 in global auto sales, after three years out of the top spot.

It's a comeback that will be official when final 2011 sales figures are reported in the coming weeks.

Recapturing the top spot seemed unthinkable in 2008 when GM lost the title. At the time, the company was in a tailspin. Its very future was uncertain, and a bankruptcy filing and federal bailout loomed.

Toyota held the title between 2008 and 2010.

GM's feat is also a contrast to other U.S. industries that lost leadership to overseas competitors, never to see it return.

Cool cars from the Detroit Auto Show

GM (GM, Fortune 500) never lost the lead in U.S. sales, but its market share here slid nearly continuously for decades, from 44% in 1980 to only 19% in 2010. But for at least the last two years that trend has been reversed, helping GM quickly return to profitability in the wake of its bankruptcy.

But its home market is only part of the sales story.

It is also the largest automaker in China, which has become the world's largest market for auto sales. It sold about 2.5 million vehicles in China, narrowly edging out its U.S. sales once again, as it increased both sales and share there.

"They continue to be awfully strong in the U.S. and China. If you can conquer those two markets, you've got two-thirds of the world," said Rebecca Lindland, director of research for IHS Automotive.

GM CEO Dan Akerson downplayed the significance of the title when speaking with reporters at the Detroit auto show Monday.

"I like profitability more than I do market share," he said. "We're a mass producer, and scale matters to us, therefore we're pleased with that accomplishment."

Market share vs. profitability: In the past GM had held onto market share and its No. 1 rank by cutting prices on cars to the point where they were unprofitable. Bob Lutz, former vice chairman of GM, said worrying about their market share rank did the companies more harm than good. (Fiat 500 sales goal 'incredibly naive')

"There is absolutely nothing to be gained by being the world's biggest," he said. "I tried to tell them to say, no, it's not our objective to be No. 1. But they just couldn't do it."

But Lindland said GM can be pleased that it got back on top without that kind of deep discounting and grab for market share.

Through the first three quarters of last year, GM's 6.8 million vehicles sold was well ahead of both No. 2 Volkswagen, at 6.1 million, and No. 3 Toyota Motor (TM), at 5.8 million.

VW has reported final global sales of 8.2 million for the year, but GM should easily top that mark, analysts said.

How long GM will be able to hold onto its lead is uncertain. Toyota is is expected to post a sharp rebound this year after disruptions caused by the earthquake and tsunami that hit Japan in March.

"I don't think we've set the goal to be the largest manufacturer in the world. I think the lead is going to trade off," said Akerson. "I wouldn't count Toyota or any of our competitors out. But we're having a good run now. I'm very pleased by our product."

Consumer Electronics Show to highlight Auto Tech

The Detroit News

Two top automotive executives will be keynote speakers at the 2011 Consumer Electronics Show in January.

Alan Mulally, the chief executive of Ford Motor Co. and Rupert Stadler, chief executive of Audi AG, will address the trade show, underscoring the increased focus on automotive electronics, said Gary Shapiro, CES president.

"This will be the most auto-centric show yet," Shapiro said at a briefing in Detroit on Thursday.

The show will have areas set aside for electric vehicles and for technology that promotes safe driving, Shapiro said.

For Mulally, this is his third straight year as a keynote speaker, putting him in rarified air with Bill Gates, head of Microsoft. Shapiro said scores of executives seek to be among the five or six keynote speakers.

The trade show runs Jan. 6-9 in Las Vegas and is expected to attract about 125,000 attendees, including 25,000 from outside the United States.

In addition to Ford and Audi, the show will have representatives from General Motors Co.'s OnStar division, Toyota Motor Corp. and Hyundai Motor Corp., to name a few. About 116 exhibitors will be showing vehicle technology, Shapiro said.

Pelosi, Obama Officials To Tour Detroit Auto Show

USA Today

Months after the government took large ownership stakes in General Motors, Chrysler and auto lender GMAC Financial Services, top lawmakers and members of the Obama administration will be taking a close look at their investment.

House Speaker Nancy Pelosi, D-Calif., House Majority Leader Steny Hoyer, D-Md., Transportation Secretary Ray LaHood and others will meet with company executives, state and local leaders and tour vehicle displays Monday at the North American International Auto Show in Detroit, one of the auto industry's annual showcases.

Pelosi said they would visit Detroit "to see firsthand the innovative technologies the industry is investing in to create the jobs of the future and to ensure our national competitiveness. We go to Detroit with our commitment to continue to preserve our manufacturing base, which is essential to our economic and national security."

Lawmakers frequently visit the auto show but organizers said they received more interest from Washington this year, only months after the government steered General Motors and Chrysler through bankruptcy helped by billions in federal aid. GMAC, a key lender to GM and Chrysler dealers and customers, recently received its third taxpayer-funded bailout.

"This year we were swamped with additional requests," said Doug Fox, the auto show's chairman. Fox said the auto show created a separate gray-colored credential because of the large demand from lawmakers and administration officials, distinguishing them from credentials issued to journalists, auto dealers and car company employees and executives.

With steep declines in auto sales and massive job losses, the Obama administration has awarded billions in funding for car companies to retool their auto plants to build more fuel-efficient cars, provided grants to spur the development of advanced batteries and pushed retraining programs for laid-off auto workers.

Pelosi will meet with Michigan Gov. Jennifer Granholm and Detroit Mayor Dave Bing and is expected to be joined by members of her House leadership team and members of Michigan and Ohio's congressional delegation. Sen. Tom Carper, D-Del., who has visited the show in past years, will also visit the exhibits.

LaHood and Labor Secretary Hilda Solis will represent the administration, which will include officials with the Transportation Department and the U.S. Environmental Protection Agency. The two agencies oversee regulations for the industry involving fuel efficiency, safety and tailpipe emissions.

The auto show will feature 60 vehicle debuts and attract more than 5,000 journalists from 50 countries. The exhibit at Detroit's Cobo Center will include a 37,000-square foot venue called "Electric Avenue," featuring electric vehicles and prototypes from a dozen manufacturers.