GM chief expects 75% sales in markets abroad

GM chief expects 75% sales in markets abroad
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First Published: Tue, Jan 08 2008. 12 01 AM IST
Updated: Tue, Jan 08 2008. 12 01 AM IST
New York/Michigan: The world’s largest auto maker, General Motors Corp. (GM), will probably get 75% of car and truck sales from outside the US within a decade, chief executive officer Rick Wagoner said.
The Detroit-based?firm plans to push sales in the fastest growing markets as demand in the US stagnates, Wagoner said in a 4 January interview.
After reducing costs by $9 billion (Rs35,370 crore today) over the past two years and agreeing to a money-saving labour contract in October, Wagoner said GM has the cash and momentum to keep pace with global competitors, led by Toyota Motor Corp. “GM has very aggressive growth plans in 2008, particularly if you look at markets like China, India, Brazil and Russia,” Wagoner said.
Preliminary results indicate that GM set 2007 sales records in Europe, Asia and other non-North American markets, Wagoner said, while US volume fell for the eighth straight year.
GM lost $38 billion through September. Profits overseas weren’t enough to overcome losses at home and a $39 billion third quarter deficit due mostly to a write-down of the value of future tax benefits.
GM’s shares are at a 20-month low of $23.65 after a 19% decline in 2007. The company’s US sales fell 6% last year, and its market share dropped to 23.7%, continuing a decline from its 1962 peak of 51%.
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Ramona Duoba in Detroit and Greg Bensinger in New York contributed to this story.
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First Published: Tue, Jan 08 2008. 12 01 AM IST
More Topics: General Motors | China | India | Russia | Rick Wagoner |