DOW JONES NEWSWIRES

General Motors Corp. (GM) reported an 11% drop in 2008 sales, capping a year in which it will lose its crown as the world's biggest auto maker to Toyota Motor Co. (TM) after 77 years.

Sales continues to slump for auto makers as 2008 came to an end, with auto makers reporting plunges in the U.S. and Europe. GM's fourth-quarter global sales dropped 26% to 1.7 million. For the year, the total was 8.4 million.

GM global sales executive Jonathan Browning noted global sales for the auto industry dropped by 3.5 million vehicles.

The company's woes led it to seek federal aid, getting $13.4 billion from the government as it burns through billions of dollars in cash a quarter to fund its money-losing operations. Chief Executive Rick Wagoner admitted last week that a bankruptcy filing can't be ruled out.

The declines for 2008 at GM were led by a 21% skid in North America to 3.6 million.

Sales in Europe, which like the U.S. has fallen into recession and had been recording slumping sales in recent months, fell 6.5% for the year to 2.04 million.

Former hot spots in emerging markets also saw slowing demand, with sales rising 2.7% in the Asia Pacific region and 3.2% in Latin America, Africa and the Middle East. Still, Russia recorded 30% growth while Brazil gained 10% and India rose 9%. China sales increased 6%.

International sales rose to 64% of GM's total from 59% in 2007.

GM shares were up 5.7% pre-market at $3.70.

-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136; kevin.kingsbury@dowjones.com

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