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Dayton Business Journal...
GM set to regain top
sales spot in 2011
by DBJ Staff
Saturday, April 23, 2011
General Motors is likely to regain the top sales spot among automakers
by the end of this year because of Toyota’s production slowdown,
according to reports.
GM (NYSE: GM) had long been the leading automaker ranked by global
sales, but lost the top spot to Toyota Motor Corp. (NYSE: TM) after GM
filed bankruptcy and restructured during the recession.
But the earthquake in Japan that resulted in a tsunami and nuclear
radiation disaster have forced production slowdowns for Toyota this
year. The Japanese automaker said this week it plans to ramp up North
American production in August and have all models back to full-scale
production by November or December.
Currently, the automaker’s North American plants are operating at 30
percent capacity because of a parts shortage following last month’s
March earthquake and tsunami in Japan.
The Associated Press reported this weekend that with Toyota not getting
back to full production until near the end of the year, GM likely will
overtake it in global sales this year, marking a victory and morale
booster for the Detroit auto giant.
The AP reported that GM sold 8.39 million vehicles worldwide last year,
which was only 30,000 less than Toyota sold.
GM, at one time the largest employer in the Dayton region, closed its
local SUV and truck assembly plant in December 2008, ending operations
at the facility that employed as many as 5,000.
Toyota operates more than a dozen plants in North America, including a
location in Georgetown, Ky. The company also bases its Toyota Motor
Engineering & Manufacturing Inc. in Erlanger. It also has
operations in Troy north of Dayton.
The Japan disaster also has hit other automakers such as GM, Honda
Motor Co. (NYSE: HMC), Ford Motor Co. (NYSE: F) and Nissan Motor Co.,
all of which have had to slow or temporarily halt production at some
facilities.
Production cuts by automakers will likely be felt locally as the
Dayton-area has dozens of suppliers to the auto industry. West
Chester-based AK Steel Holding (NYSE: AKS) sells steel to many of the
big automakers.
Other suppliers to the auto industry include Johnson Controls Inc.
(NYSE: JCI), Magna International Inc. (NYSE: MGA) and Lear Corp. (NYSE:
LEA).
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