Competitive Connection

January 29, 2007

Then and Now
GM sold 9 million vehicles globally last year -- only the third year ever (1978, 2005 and 2006). The global market exceeded 67 million vehicles last year,  and GM set sales records in all three regions outside North America. Despite that performance, GM's global market share slipped to 13.5% as competition heats up and competitors' new vehicle models flood the market. In 1978 we sold 9.55 million vehicles globally and had a 25% market share in a 38 million vehicle market. Our best global market share performance since WWII was 39.6% in 1950, in which we sold 3.82 million vehicles in a 9.65 million global market.

A look at the competition . . .
Toyota raises production target of future Camry plant in St. Petersburg, Russia
 Construction of Toyota's first vehicle assembly plant in Russia is expected to be completed in February, around two months earlier than estimated. Toyota began construction at the St. Petersburg site in June 2005. The St. Petersburg plant would then commence building its first car in the last week of December 2007. Toyota is already looking to increase production capacity at the new plant, which will initially build Camry sedans, to around 200,000 to 300,000 units annually. Following poor sales of previous generation models, the Camry is no longer exported to western, eastern or central Europe but has been a successful model in Russia. --Source: Automotive World, 13 December, 2006

A look at the competition . . .
Honda’s Green (Diesel) Machine
By 2009, Honda plans to sell "clean diesels" in the U.S. These cars will likely go some 30% farther per gallon than gasoline models. The 2.2CTDi diesel-powered Honda Civic, sold now in Britain, delivers 43 miles per gallon in town and 55.4 mpg in combined city-highway driving. The hybrid Civic manages only 50 mpg in combined driving, while a gas Civic averages 33 mpg. –January Manufacturing Intel Brief

What others are saying . . .
North American auto industry spending remains steady
The automotive industry closed 2006 with impressive year-end spending numbers. Just over $10 billion was invested in capital and maintenance projects in North America during the course of last year, slightly down from 2005’s $11.2 billion in spending. All indicators point to 2007 being more successful for the industry than 2006.

As with 2006, certain regions in North America will be hotbeds for spending in 2007. Chief among these is the Great Lakes, the home of the North American auto industry, with over $2.8 billion worth of project work scheduled to begin during the year. A close race for second place is being waged between Mexico with $2.389 billion worth of investment, and the Southeast region of the United States with its $2.381 billion worth of investment. Ontario is currently a distant fourth with nearly $1.4 billion in anticipated spending.--Source: Reliable Plant Magazine, January 22, 2007

What others are saying . . .
Motor groups increasingly find fortunes overseas
General Motors, Ford Motor and DaimlerChrysler's US Chrysler unit all reported falling domestic sales last year as higher petrol prices pushed more American drivers toward smaller cars made by their Asian competitors. For all these carmakers, foreign sales numbers were stronger amid their continuing push into China, India, Latin America, and other faster-growing new markets. GM, whose GM Daewoo (GMDAT) joint venture plants in Korea are producing Chevrolet cars on double shifts and shifting some production to Poland, has sold more vehicles outside the US than at home for each of the last two years. –Source: Financial Times, January 23, 2007
Note: In 2006, GM sold 4.12 million vehicles in the U.S., and 4.97 million vehicles outside of the U.S.