Good news for General Motors. I hope they do well as that is where my pension check comes from.

JANUARY 20, 2012 AT 1:00 AM

GM again world's largest on strong Chevy sales

Automaker sells 9 million vehicles as disasters hobble Toyota

BY BRYCE G. HOFFMAN
THE DETROIT NEWS
2 COMMENTS

Peggy Burnside inspects a Chevrolet Sonic at the end of the assembly line at GM’s Orion Assembly Plant in Lake Orion in September. Chevy sold nearly 4.8 million vehicles in 2011, and its growth has become a focus for GM. (GM)

General Motors Co. says it sold more than 9 million cars and trucks worldwide last year — a 7.6 percent increase that allowed the company to reclaim the title of world's largest automaker.

The company said those gains were driven by the Chevrolet brand, which sold nearly 4.8 million vehicles in 2011. That was a record for the brand, which has become the focus of GM's global expansion efforts.

"Chevrolet's impressive growth in both established and developing markets is the result of a strong new product lineup that meets the diverse needs of consumers around the world," GM CEO Dan Akerson said in a statement released Thursday. "In addition to Chevrolet's record-setting sales, the entire lineup of GM vehicles is meeting customer needs for fuel-efficient cars and work vehicles as well as unmatched luxury."

But analysts said GM also benefited from the string of natural disasters that afflicted its archrival, Toyota Motor Corp.

Like other Japanese automakers, Toyota's production was dramatically disrupted by the devastating earthquake and tsunami that struck the island nation last March. Then, just as its factories were getting back up to speed, flooding in Thailand forced key suppliers to suspend parts shipments.

Toyota, which snatched GM's crown in 2008, saw sales tumble in the United States and other key markets. Now, GM appears to have taken it back.

Toyota has yet to report its full-year tally, but its sales in the first three quarters of 2011 were down 8.8 percent. For a while, Volkswagen AG appeared to be outselling both GM and Toyota, but it ended the year with 8.16 million vehicle sales.

"The impact of the earthquake, the tsunami and the floods was significant," said Michael Robinet, managing director of IHS Automotive Consulting. "But I think it's a combination of a number of factors. GM's been doing extremely well in this market, but also making huge strides in China."

In fact, General Motors again sold more vehicles in China last year than it did in the United States. GM and its joint-venture partners sold more than 2.5 million units in China last year, up 8.3 percent from a year before.

The company said its sales were up in each of its four global regions. GM's share of the global automobile market climbed to 11.9 percent in 2011, up from 11.4 percent, GM said.

"The real test will be how well Toyota can come back this year and in coming years," Robinet said. He added that the Japanese automaker is lagging behind many of its rivals — including GM — in terms of new vehicle introductions and styling, and has to deal with the challenges posed by a strong yen. "A lot of their competitors are making significant progress," Robinet said.

One of those competitors is Ford Motor Co.

While its global sales results have yet to be released, the Dearborn automaker last year reported a 2.4 percent increase in Europe — a region that has seen a significant decline in demand.

"Despite the serious economic challenges we all faced in the region, 2011 was an exciting year for the Ford brand in Europe," Ford of Europe chief Stephen Odell said in a statement.

"We made a commitment to relentlessly deliver new products and technologies even in the toughest of times, and it's paying off."

Ford's sales were up 11 percent in the United States as well.

Chrysler Group LLC also has yet to release its full-year numbers, but said sales of its Jeep brand — its most important international marque — climbed 61.8 percent last year in Europe.

bhoffman@detnews.com

(313) 222-2443

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