GM CEO Vows Fight For Sales

In an email, General Motors Corp. ’s Chairman and CEO, Rick Wagoner, told senior executives that the company has not given up the fight despite being outpaced by the Toyota Motor Corp. in global sales in the first quarter of this year. “We still have most of the year ahead of us, and we will fight hard for every sale – all the while staying focused on our long-term objectives as a global, growing company,” he wrote shortly after Tuesday sales figures from Toyota were released.

Wagoner said that GM was surpassed by Toyota largely because of his movement to reduce unprofitable sales to fleet customers and the fact that Toyota crushes GM in sales in the Japanese market. “As many of you, I awoke to news reports today Toyota passes GM in global sales in the first quarter of this year, for the first time in history,” Wagoner said in the email. “I do not welcome the news this morning, and I know you either. But the important thing is to stay focused on implementing our business strategies around the world, because they are working.”

GMs senior officials have sought to highlight the return on sales. A strategy to reduce fleet sales “cost us about 70,000 daily rental units lower sales in the United States and Canada in the first quarter of this year almost all of our difference from the worldwide sales of Toyota . But it was the right thing. Our sales and marketing strategy requires patience, but it is working, and we must continue with it, “Wagoner wrote.

GM Vice President Bob Lutz offered a response Wednesday to Curt Toyota surpassing GM in first quarter: “My reaction is” So what? “GM has been the world leader in car sales since 1931, when it was overthrown Ford Motor Co.

In 2006, the Detroit automaker sold 9.1 million vehicles worldwide, down from 9.17 million in 2005, reporting a net loss of $ 2 billion, reducing its loss of $ 10.4 million in 2005. Last year, Toyota sold 8.8 million vehicles, up eight percent and earned more than $ 11 million in its last fiscal year. The Japanese automaker said it expects to sell 9.34 million vehicles this year. GM does not disclose its sales target for this year.

In your email, Wagoner noted that GM outsells Toyota in 12 of the 15 largest car markets worldwide, and still outsold Toyota by 1.5 million units in the U.S. in the previous year. “One issue is where we go to Toyota in sales? Basically, Toyota beats us badly in the Japanese market (2.4 million units on an annual basis), and won in most other markets,” he wrote. The Director General also noted that the automaker is “stay focused on further reducing our still huge disadvantage in the cost of medical care compared to Toyota and other manufacturers based in the United States.”

Toyota stepped up its lobbying efforts in Washington Wednesday, stressing its investment in U.S. at a time when some officials of the company feared a backlash. About 100 employees of Toyota USA – Including assistant regional managers, plant managers and financial executives – fanned out on Capitol Hill to participate in a pre “lobbying effort basis,” said spokeswoman Martha Voss.

“They are here to touch base and say, ‘We’re here, we are in his district. Here’s what kind of jobs and the investments we have,” Voss said, adding the time had nothing to do with the sales milestone . Toyota’s lobbying efforts are completely obvious. “They outspend us,” Lutz said in January. “It is my opinion that Toyota has more clout in Washington than we do.”

Another issue of domestic cars have complained stridently about the value of the Japanese yen. Japanese automakers dispute currency “manipulation” unfairly gives Toyota, Honda and Nissan up to $ 4000 per vehicle subsidy. American made cars more expensive in Japan and Japanese imports cheaper in the United States. This is the case with other automobile manufacturers in Detroit. Compared with the assembly of foreign auto parts, it would be difficult for all Jeep cold air intake U.S. and other auto parts to penetrate other areas, especially Japan.

Two thirds of the U.S. $ 88 billion trade deficit with Japan is auto-linked. Last month, U.S. Senator Debbie Stabenow, D-Lansing, introduced a bill called the Law of Japanese currency manipulation, which would force the government of Japan to “take action to stop subsidizing millions of auto exports to the U.S. hence its currency in proper alignment with the U.S. dollar, “said a statement from the Automotive Trade Policy Council, which represents a group of GM, Ford and DaimlerChrysler AG.

The group said the grant is going up an unexpected $ 10,000 per vehicle for more Japanese imported SUVs such as those sold by Toyota under the Lexus brand. ”

The National Security Council (NSC) spokesman Dave McCormick defended the administration’s approach. This is what he has to say: “We hope that the markets have opened in all areas, and focus on continuing to find ways for Japan to open its markets, particularly for foreign investment in the automotive sector.”