GM poised to regain momentum as Toyota suffers permanent damage

Article by Christian Andrei, on August 26, 2010

With Toyota Motor Corp.'s reputation suffering under the massive global recalls of over 8.5 million cars, General Motors Co. is poised to surge past it and stay ahead.

In an interview at the New York Auto Show, GM Vice Chairman Bob Lutz said the company is "well ahead of plan" and is becoming increasingly so. He also said that Toyota won't ever reclaim its "God-like status."

It can be recalled that Toyota surpassed GM as the world's largest automaker in 2008. Lutz, who is 78 years old, will retire on May 1 after serving 47 years in the car industry. While Lutz had been an ardent admirer of Toyota's quality and production techniques, he said that Toyota became "too revered."

He asserted that Toyota will now be "slugging it out" with the rest of the carmakers. Lutz pointed that GM is improving its cash flow and profitability quicker than the projection due to the higher margins provided by the new models, including the Chevrolet Equinox small SUV.

Lutz also said that GM's reorganization in a US-funded bankruptcy last year significantly reduced its costs.

Lutz said that the Equinox is sold out and has a transaction price that's $5,000 higher than the old Equinox. Lutz claims that when the company is able to demonstrate financial success, it "will regain the momentum." [via autonews]

Topics: gm, toyota, sales

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