General Motors has released third quarter sales down 11.4%, amounting to 2115 million vehicles. It is up to the second place car world, behind the Japanese Toyota, whose sales amounted to 2236 million dollars. GM had already been dethroned by Toyota, the previous six months, ending a reign unchallenged several years. ( Finance Information City )
The American manufacturer is suffering from slowing demand in Europe and North America. GM sales are down 18.9% in the USA and 12.3% in Europe. The group may count on emerging countries and the Middle East to restore its balance sheet. Sales in Latin America, Africa and Middle East increased by 3.4%, and Asia-Pacific 2.6%. "The recent problems in financial markets worldwide, including tightening credit and falling prices, have adversely affected demand. However, our sales performance shows that we continue to seize opportunities offered by emerging markets, "said vice-president of GM, Jonathan Browning.
In the brand portfolio of General Motors, some suffer more than others. This is the case for Chevrolet, which saw its sales fall by 8.3%, while Daewoo rose by 4.7%, even though it represents only 1.5% of sales. More specifically, sales of 4x4 Hummer, GM's flagship brand that the group wishes to sell, fell by half. The brands Opel / Vauxhall, which contribute up to 16% of sales are down 16.3%.
GM reorganizes
On 23 October, the Detroit group had announced a further wave of redundancies, in addition to the 73,000 envisaged by the plan of voluntary departures. According to a letter published by the Wall Street Journal, changes in wages will also be made.
GM faces many problems cash. In the second quarter of 2008, the group recorded a loss of 15.5 billion dollars and has lost 66 billion dollars since 2005. The title has lost 83% of its value last year.
According to The New York Times, GM and Chrysler, seek aid from 10 billion dollars of government in order to best achieve their proposed merger.
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