Jan. 7 (Bloomberg) -- General Motors Corp., the world's largest automaker, will probably get 75 percent of car and truck sales from outside the U.S. within a decade, Chief Executive Officer Rick Wagoner said.

The Detroit-based automaker plans to push sales in the fastest-growing markets as demand in the U.S. stagnates, Wagoner said in a Jan. 4 Bloomberg Television interview. In the third quarter of last year, 58 percent of GM's sales came from outside its home market. GM relied on the U.S. for most of its volume as recently as 2004.

``Overseas growth is an absolute necessity if GM is going to compete, not just with Toyota, but with emerging market automakers,'' John Casesa, managing partner at Casesa Shapiro Group in New York, said in an interview. ``It's this sales mix that will eventually save GM.''

After reducing costs by $9 billion over the past two years and agreeing to a money-saving labor contract in October, Wagoner said his company has the cash and momentum to keep pace with global competitors, led by Toyota Motor Corp. The Japanese carmaker is threatening to end GM's 76-year reign as the industry's biggest company.

``I don't concede anything at all,'' said Wagoner, 54. ``GM has very aggressive growth plans in 2008, particularly if you look at markets like China, India, Brazil and Russia.''

Overseas Rise, U.S. Fall

Preliminary results indicate GM set 2007 sales records in Europe, Asia and other non-North American markets, Wagoner said, while U.S. volume fell for the eighth straight year. GM lost $38 billion through September. Profits overseas weren't enough to overcome losses at home and a $39 billion third-quarter deficit due mostly to a writedown of the value of future tax benefits.

GM rose 1 cent to $23.66 at 4:22 p.m. in New York Stock Exchange composite trading. GM dropped 19 percent last year.

Investors aren't giving the automaker enough credit for tapping ``explosive'' growth in China and Russia, where GM outsells Toyota, Wagoner said.

GM kept its lead over Toyota globally through September with 7.06 million sales, for a margin of 10,000. At the end of the first half, Toyota, maker of the Camry sedan, led by 39,000 vehicles. Yearend totals will be announced this month.

Wagoner said his plan to end losses in North America is about 50 percent to 60 percent complete. Some actions, such as the new labor agreement, haven't yet contributed to reduced costs. Wagoner plans to cut fixed expenses to 25 percent of revenue by 2010 from about 34 percent in 2005.

`More to Do'

``Maybe the actions are a little farther along, but the results I don't think are that far along,'' Wagoner said. ``From that perspective, we've got plenty more to do.''

Under last year's agreement with the United Auto Workers, the union agreed to pay future union retiree health-care costs and accept 50 percent lower wages and benefits for new workers. In exchange for shedding $47 billion in union retiree costs, GM promised to keep building more cars and trucks in the U.S. The health-care fund won't create savings until 2010.

GM is banking on redesigned models such as the Chevrolet Malibu and Cadillac CTS sedans to help end its U.S. sales decline, he said. GM's U.S. sales fell 6 percent last year, and its market share dropped to 23.7 percent, continuing a decline from its 1962 peak of 51 percent.

``We have a reasonable prospect for picking up some retail market share,'' he said. The automaker has been trying to reduce low-profit sales to rental-car companies and other fleets.

GM's 8.375 percent note due July 2033 fell 0.44 cents to 77 cents on the dollar, yielding 11 percent, according to Trace, the NASD's bond-price reporting service.

Credit-default swaps on GM debt increased 1.3 basis points to 842.5 basis points, according to CMA Datavision in London.

The contracts are designed to protect bondholders against default. An increase in the price indicates erosion in the perception of a company's credit quality.

To contact the reporters on this story: Greg Miles in New York at gmiles1@bloomberg.net; Jeff Green in Southfield, Michigan at jgreen16@bloomberg.net

Last Updated: January 7, 2008 17:37 EST