GM Falls to Fourth Place in Global Automaker Rankings by Revenue
General Motors has slipped to fourth position among global automakers by quarterly revenue, overtaken by Daimler and now just ahead of Renault-Nissan.
General Motors has dropped to fourth place among the world’s largest automakers by quarterly revenue, falling behind Daimler in the April to June 2014 period. The shift marks a further decline for GM, which once dominated global sales for decades but now faces intense competition from both established and emerging rivals.
Revenue rankings: Volkswagen and Toyota out front
Volkswagen AG led the quarter in revenue with $68 billion, despite Toyota maintaining its position as the world’s top automaker by unit sales. Toyota’s revenue for the quarter stood at $62 billion, reflecting strong global demand and a broad product portfolio. Daimler AG, driven by Mercedes-Benz sales and commercial vehicle operations, posted $42 billion, overtaking GM’s $39 billion for the same period.
The Renault-Nissan Alliance, combining the results of the French and Japanese partners, reported revenues just $100 million less than GM’s, making the gap between fourth and fifth place the narrowest among the top five. Ford followed with $37 billion, while Hyundai-Kia’s rapid growth brought the Korean group to $31 billion. Honda and BMW rounded out the top ten with $29 billion and $26 billion respectively.
Pressure on GM’s position
GM’s relegation to fourth is the latest sign of pressure on the Detroit manufacturer. The company has faced a year of safety recalls and regulatory scrutiny, which industry analysts say has weighed on both sales and profitability. With Renault-Nissan close behind and Hyundai-Kia gaining ground, GM’s position among the global leaders is less secure than at any point in recent memory.
Toyota and Volkswagen continue to set the pace in both sales and revenue, while Daimler’s focus on premium vehicles and commercial segments has strengthened its financial results. For GM, maintaining its global ranking will depend on restoring consumer confidence and addressing operational challenges in key markets.
Competition from below
The narrow margin separating GM from Renault-Nissan and the presence of fast-growing Hyundai-Kia reflect a broader shift in the industry. Japanese, Korean and European manufacturers are all investing heavily in new models, emerging markets and technology, increasing the pressure on traditional US leaders. For a wider look at how Asian manufacturers are challenging established players, seeJapanese Automakers See Hyundai as Global Threat.
