Kal Korff

GM Reclaims Worlds Top Auto Ranking

by Kal K. Korff
Internationally Syndicated Copyright 2012 by Kal K. Korff - ALL RIGHTS RESERVED.

General Motors (GM), the American car manufacturing company which saw the top global sales crown for automobiles bested by Toyota during the past few years, has reclaimed the number one spot, citing sales of some 6.8 million vehicles in 2011. Rounding out the top three were Volkswagen at 6.1 million and Toyota at 5.8 million units respectively. While GM has clawed its way back to the top, as usual the proverbial devil is in the details. Neither GMs current position, nor the claims to profitability are what they appear to be at first glance. Japanese carmakers have yet to fully recover from the devastating tsunami which killed tens of thousands of people last year. The Tsunami, and the economic damage it caused, still has Japan reeling from its aftermath. For the first time in decades, Japan has run a trade deficit. Other manufacturers such as Sony are also suffering, Japanese economic growth is largely anemic in the wake of the damage caused to the country. GMs sales have also been helped by a sudden upsurge of shipments to China. GM claims that more than two million vehicles were sold to the Communist country. Historically, the Chinese have shunned Japanese cars, thanks to long standing hostilities between the two nations dating back to well before World War II. GMs balance sheet is also less than what it seems. While the companys stock is hovering around $24 a share, this is a far cry, despite its recently proclaimed profitability, from its previous 52 week high of $37. In their last financial quarter, General Motors reported a net income of $1.7 billion on sales of $36.7 billion. Despite this improvement, GMs Chairman and CEO, Dan Akerson, was stern in his remarks telling the media and analysts that, GM delivered a solid quarter thanks to our

leadership positions in North America and China, where we have grown both sales and market share this year. But solid isnt good enough, even in a tough global economy. Our overall results underscore the work we have to do to leverage our scale and further improve our margins everywhere we do business. 1.0v1 February 2, 2012 Kal K. Korff is an officially accredited internationally known author, columnist and investigative journalist.

Copyright 2012 by Kal K. Korff - ALL RIGHTS RESERVED. No part of this content may be reproduced in any form nor by any means without the express, written consent of Kal Korff. Fair use, does NOT apply. By reading this document, you willingly agree to be legally bound by its terms and conditions. Violators of this policy will have a felony DMCA Copyright infringement notice filed against them with law enforcement. First time offenders may be fined up to $500,000, imprisoned for five years, or both. For repeat offenders, the maximum penalty increases to a fine of $1,000,000, imprisonment for up to ten years, or both. This is a DMCA protected document, illegal copying and/or reproduction of its contents are tracked on the Internet and reported to law enforcement for felony prosecution.

Copyright 2012 by Kal K. Korff - ALL RIGHTS RESERVED. No part of this content may be reproduced in any form nor by any means without the express, written consent of Kal Korff. Fair use, does NOT apply. By reading this document, you willingly agree to be legally bound by its terms and conditions. Violators of this policy will have a felony DMCA Copyright infringement notice filed against them with law enforcement. First time offenders may be fined up to $500,000, imprisoned for five years, or both. For repeat offenders, the maximum penalty increases to a fine of $1,000,000, imprisonment for up to ten years, or both. This is a DMCA protected document, illegal copying and/or reproduction of its contents are tracked on the Internet and reported to law enforcement for felony prosecution.