Value of GM Vs. Toyota Brings It Home

In the automotive sales world, you could call the month of June dismal. Consider the numbers. Sales for Chrysler LLC, which is privately owned, were down 36 percent from June 2007. Nissan North America reported its sales were down 17.7 percent from last June. General Motors Corp. reported more of the same - its June sales fell 18.5 percent from the same month a year ago.

Reporting in the L.A. Times, writer Ken Bensinger summed up the financial value of GM this way: When the selling was over, the stock price of GM, the nation's largest automaker, stood at $11.43 - a decline of $1.38 or 11 percent. With a market capitalization of $6.47 billion, it would take 23 GMs to equal the $148.8-billion valuation of Japanese rival Toyota Motor Corp.

An interesting comparison to picture, we thought.

What's the silver lining with all of this? The decline in sales indicates more consumers are keeping their current cars longer and, hopefully, having them serviced. Independent shops should benefit.

Stat Corner is written by Karin White, ASA's research and project specialist. She can be reached at (800) 272-7467, ext. 252, or by e-mail at karinw@asashop.org.