News

Detroit’s General Motors named the world’s top vehicle maker
25/01/2012

Gemma Stephenson

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According to BBC News, General Motors (GM) has been named the world’s top vehicle maker, after successfully launching new models to increase company’s market share.

Facing bankruptcy only two years ago, the company was rocked with uncertainty during the recession but has bounced back in recent years to regain the much converted title.

Selling over 9 million vehicles in 2011 alone, the Detroit-based firm increased sales by 7.6% overtaking Toyota – its closest competitor - who forecasted sales of 7.9 million last year.

According to Toyota, sales were affected by the Tsunami in Japan and the flooding in Thailand, which disrupted factories and suppliers.

Speaking about the company’s new rankings, Dan Akerson, Chief Executive of General Motors highlighted the strength of sales with contribute to the long-term stability of the company.

"You're not going to achieve the financial goals we want to achieve and have declining market share or declining numbers of units sold," he said. "So it's one indicator among many."

Emerging from bankruptcy in 2009, General Motors received a $52 billion (£34 billion) taxpayer-funded bailout. To date, the United States Treasury still owns over 30% of General Motor’s ordinary shares.

To expand its market share, General Motors focused on boosting its presence in some of the fastest expanding markets in the world including China and India.

Increasing its sales and those of its partners in China by 8.3%, a record high of 2.5 million vehicles were sold in 2011.

Stabilising within the turbulent American economy, General Motor’s increased word ranking is great news not only for the country’s manufacturing industry, but also for the growth of Detroit’s economy.

The creation of new jobs has helped boost the city’s economy, with a number of people relocating to obtain sought-after work. The fluctuation of new employees has had a direct effect on Detroit’s property market, with a number of people opting to rent in a time of economic uncertainty, rather than buy.

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