General Motors said yesterday that the US market slowdown had led to a sales decline that has given Toyota an early lead for this year's global auto sales.

For the first-quarter, Toyota capitalized on growth in China and Europe as GM saw its North American sales drag down gains in other markets. Toyota said sales grew 2.7 percent, selling 2.41 million vehicles for the period, compared with GM's 2.25 million, a decline of less than 1 percent. As a result, GM is about 160,000 vehicles behind its Japanese rival.

On Wednesday, GM became the latest automaker to predict that the industry was entering its worst months of the year. GM said that the second quarter, which typically has strong auto sales, could end up being the slowest period of the year.

Ford officials echoed the sentiment this month, stating that they believed Spring would be the slowest season for automakers in 2008.

Chrysler too said it was not counting on a significant improvement in the market this year.

"The big caveat is gas prices," said Michael C. DiGiovanni, GM's chief sales analyst. "This is clearly a head wind we didn't anticipate would be to this level."

The average price of regular gas has reached a record high of $3.533 a gallon, according to the AAA motor club. And that doesn't bode well for the belt-tightening consumer, who will continue to be less likely to purchase a new vehicle, and as a result become a satellite radio subscriber.

[New York Times, AP]
Pictured: The 2009 Cadiallac Escalade Hybrid, © General Motors.

Toyota has gone and partnered with iBiquity, to offer HD Radio in its Scion vehicles.

Details are pretty scant at this time, all we know is that HD Radio will be offered in "select audio systems" in the "near future." Which means that it's not standard equipment and it won't be available in every system across Scion's three model lines.

Here's the standard corporate blah-blah from Toyota (iBiquity's isn't even worth quoting):

"Since Scion customers are in tune with audio technology, it makes sense that we enhance our already outstanding audio offerings for them," said Jason Adang, Accessory Audio and Electronics Planning Manager, Toyota Motor Sales, U.S.A., Inc. "Digital HD Radio technology is ideal for our youthful, tech-savvy customers who will enjoy the wide range of content available on HD Radio channels."

He's right, Scion users are indeed in tune with audio technology, they're also notoriously young. Which isn't an insignificant development, as terrestrial radio is trying desperately to re-engage that youth audience.

The real question is whether this opens the door for HD Radio inclusion in more Toyota vehicles.

Sirius and XM introduced their real-time traffic services in 2004, but even though they were fairly early to the game, they're definitely not the only ones focusing on the space.

Last week a group of broadcast corporations - comprised of Cox Radio, Entercom, Bonneville, Emmis, Beasley, Greater Media, Radio One, and NPR - formed a joint venture called the Broadcaster Traffic Consortium. The goal? To help monetize the HD Radio spectrum (which is in dire need of monetization). And they're working with NAVTEQ to make it happen.

Meanwhile, back at the ranch, Microsoft Research laboratories spent the last five years developing a complex software model to avoid traffic jams, called Clearflow.

Clearflow will be freely available as part of Live Maps, with support for 72 cities. It doesn't just reroute you around traffic jams, because in some cases rerouting off the highway can send you into even more congested areas. Instead, Clearflow will figure out whether its worthwhile to stick it out on the freeway, rather than taking a detour.

Of course Clearflow was created to help Live.com compete with Google, but how long before Microsoft applies the Clearflow technology to MSN Direct?

MSN Direct has snuggled up with Garmin over the years, and the folks at Redmond have even partnered with Clear Channel to deliver MSN Direct HD over - you guessed it - the HD Radio spectrum (note that Clear Channel isn't part of the consortium).

And then there's the ICO mim service - which yesterday enjoyed a successful launch of their ICO G1 satellite - that will be going online in the near future with a trial service. Their setup will be similar to Sirius and XM, using a hybrid satellite and terrestrial network (as opposed to HD Radio's pure terrestrial setup). ICO is still in its infancy when compared to these other technologies, but shouldn't be discounted either.

The bottom line is that the current solution for avoiding traffic congestion (i.e., listening to your local radio station) is a subpar one to say the least. By the time an accident is mentioned on the radio, it's usually too late. And the daily commuter will be more than happy to plunk down a few bucks a month when they're stuck in a mile-long jam.

Don't get me wrong, Sirius/XM were pretty darn smart in seeing this need and getting a shoe-in with automakers nearly 4 years ago. But this is still extremely new technology as far as the consumer goes. And as a need arises, there will be plenty of companies willing to profit from fulfilling it.

XM will be sponsoring the RS*R Scion tC in Formula Drift events this year.

Scion's drift car is based on its most popular model: the tC sports coupe. But this isn't any regular ol' tC kids. This Scion was converted from front-wheel drive to a rear-wheel drive to make it a true drifting contender. Exhaust and suspension manufacturer RS*R used its performance shop to transform the tC's stock transverse engine to a longitudinal setup, driving power directly to the rear wheels.

"This sponsorship of the RS*R Scion tC in Formula Drift events is an extension of our support in the racing community and our relationship with Scion," said Joe Verbrugge, senior VP of XM's automotive partnerships and international operations. "XM loves racing, and we're thrilled to join Scion's involvement in this cutting-edge motorsport."  

The RS*R Scion tC, which is also sponsored by Toyo Tires, Rogue Status, BASF, Sparco, Enkei, AEM, Proceed and Meguiar's, will make its first appearance at Formula Drift's Round 1, Streets of Long Beach in California this Friday, April 12th.

XM displays will be at each event alongside the Scion/Toyo Pit area, featuring prize giveaways and live XM listening stations.

Photos available after the jump...

XM NavTraffic is continuing to grow in vehicle penetration. Today at the 2008 Dallas Auto Show, General Motors revealed that it is adding the satellite-driven data service to many of its vehicles.

GM will add XM NavTraffic across its lineup to provide real-time traffic data to 22 navigation-equipped vehicles in the 2009 model year.

Among the vehicles to offer XM NavTraffic will be some of GM's most popular models, including the Chevrolet Tahoe, GMC Sierra, Buick Enclave, Saturn Vue and Hummer H2.

All GM models equipped with XM Radio and XM NavTraffic come standard with a 3-month free trial subscription. Click the jump to see close-up photos of the interface...

March auto sales fell 12 percent from a year earlier on an unadjusted basis, thanks to declining consumer confidence, higher fuel prices and recession concerns.

GM reported a 13 percent sales decline for the month, Chrysler dropped 13.2 percent, and Ford saw a 7.6 percent decline. Toyota, the #2 automaker in U.S. sales, said sales fell 3.4 percent.

"We're not immune to economic cycles," said Toyota division sales chief Bob Carter.

Toyota, which cut U.S. truck production in March, said it would be forced to lower its forecast for U.S. industry sales of 16 million vehicles in 2008.

"I think the main weakness is consumer confidence," said GM sales chief Mark LaNeve. "It's (mortgages) resetting. It's worry about the news. It's presidential candidates telling you how bad it is. It's Bear Stearns."

Conversely, Honda and Nissan outperformed the weak industry and increased their market share. Sales at Honda rose 4.2 percent while Nissan posted a 3.6 percent gain.

"The compact cars and the new crossovers are really what is carrying most manufacturers," said Jesse Toprak, executive director of industry analysis for Edmunds.com, highlighted by the fact that sales of pickup trucks and SUVs fell 18 percent in March.

"Consumers want to buy cheaper, more gas efficient vehicles," Toprak said.

[Reuters]