My finance view

DETROIT–General Motors Corp reported worldwide sales yesterday of 9.37 million vehicles in 2007, coming in just ahead of Japanese rival Toyota Motor Corp. in a closely watched race for the top spot in global sales.

GM, which was expected to lose its title of the world’s largest automaker for the first time in 76 years, sold 9,369,524 vehicles in 2007. Toyota sold about 9,366,000 units, a source said yesterday.

The Japanese automaker earlier this month publicly announced global sales of 9.37 million for 2007, saying it would disclose more precise figures in late January.

GM said its total global sales rose 3 per cent from a year earlier, driven by strong growth outside North America.

Still, the two automakers are neck-and-neck, with only about 3,500 vehicles separating them at a time when Toyota has been growing in the United States – the world’s single largest market for vehicle sales – while GM’s domestic market share has been slipping.

Since 1998, GM’s global sales have grown at an average annual rate of 1.5 per cent, while Toyota’s growth rate has been five times that.

The two automakers have been perceived to be in a heated race this year after Toyota overtook GM in the first quarter and then fell behind by just a few thousand units later in the year.

"We are very competitive here at GM and obviously we’d like to win," said GM’s chief sales analyst Mike DiGiovanni cash advance.

After losing more than $12 billion (U.S.) in 2005 and 2006, GM is in the middle of a restructuring of its North American operations that includes slashing more than 34,000 jobs and closing 12 plants.

GM’s annual sales in North America, its largest and historically most profitable market, fell 6.1 per cent, hurt by factors including high gasoline prices, a weak housing market and a subprime mortgage meltdown.

The automaker, which has been struggling in the U.S. – has been growing overseas as it loses market share to Japanese competitors at home.

Outside the U.S., sales totalled 5.5 million vehicles, 59 per cent of total sales. Sales in the Asia Pacific region rose 15.1 per cent led by China, while sales in Latin America, Africa and the Middle East rose 19.4 per cent. Sales in Europe rose 8.9 per cent.

DiGiovanni also said he expected global industry vehicle sales to grow 3.5 per cent to 73 million units in 2008.

Source