The Global Auto Sales Race heats up

Things in the global automotive industry, traditional wrestling are really heating up the players for a first place finish in the race for global domination. General Motors Corp., which was number one in terms of global car sales for over 75 years, is struggling to keep the title in the face of increasing competition from Toyota. Last year Toyota came out only by General Motors 261,805 units.

Although it seems inevitable that Toyota will support the first place, an increase in sales in China (GM is now # 1 in China, beating the former top dog Volkswagen) and increasing sales in India have supported global sales for the general, despite lower sales in North America. General Motors chief Rick Wagoner said recently: "If we can continue to grow, where opportunities to grow, someone is going to have to hustle pretty hard to catch up with us so." Having said that, according to The Wall Street Journal being # 1 is no longer a top priority for Rick Wagoner and General Motors.

Ford Motor Company, once the # 2 worldwide, is in third place with sales of just over 6.2 million units. Strong sales in Europe offset the drop in sales of vehicles seemingly endless blue oval in North America. Once best-sellers like the Ford Focus and Ford Explorer now sitting on dealer lots of competition far more innovative and fresh to attract new buyers. Ford would be appropriate to develop a more coherent product planning, instead of letting big cars perish without a clear vision.

This is quite evident when you look at the recently discontinued Ford Taurus and Lincoln LS, vehicles carrying substantial brand equity at some point but could not because it has become stale and irrelevant from their competition. If Honda and Toyota can keep the Accord and Camry labels go after more than 2 decades, because Ford has had a difficult time doing the same?

The big news is not only tops the list. In the wake of increased global sales by over 11% in 2005, Hyundai Automotive Group is in high gear. The Korean automotive giant has moved into sixth place behind DaimlerChrysler. Since 1999, Hyundai has exceeded the established players, such as Honda, Fiat, Nissan and Renault. Hyundai has no intention of becoming too comfortable in sixth place as they put their eyes to be among the top five by the end of the decade.

They have their work cut out for them as fifth place DaimlerChrysler is currently selling about 1 million more vehicles annually. But I would not bet against Hyundai. Over the past 10 years have beaten just about everyone's expectations.

Volkswagen holds steady in fourth place with over 5.2 million vehicles sold in 2005. 2006 and 2007 should see a modest increase with the introduction of next-generation Golf (now known as the Rabbit) in North America and new models like the Volkswagen Eos.

Although nothing is certain in the auto industry, a theme that is. No car manufacturer has a right inherent in the first place. Must be obtained through large cars and trucks. In this list the big winner is the consumer .......