General Motors Corp (GM.N) on Wednesday detailed an 11 percent slide in globalsales that cost it the industry's top spot as governments in the United States and France insisted on tough conditions for further aid for the struggling auto industry.

GM, now struggling to restructure under a $13.4 billion U.S. government bailout, had held the title as the global auto industry leader for 77 years and had used the line in its marketing.

But for 2008, GM's sales tumbled to 8.35 million vehicles.That put it decisively below rival Toyota Motor Corp (7203.T), which saw its sales slip 4 percent to 8.97 million vehicles.

Both sides downplayed the significance of the shift in market leadership at a time when the global auto industry is reeling from crisis.

'Share doesn't always pay the bills,' said Don Esmond,Toyota's senior vice president for U.S. operations.

Separately, Chrysler LLC, which has been given $4 billion from the U.S. government, said a condition of completing its proposed tie-up with Fiat (FIA.MI) was securing an additional $3 billion in U.S. government loans.

'Chrysler still has a cash flow issue,' CSM analyst Michael Robinet said in a report on the proposed Fiat deal.

In Europe, France's economy minister, Christine Lagarde, said that as well as pledging to safeguard jobs in France, bosses at PSA Peugeot Citroen (PEUP.PA) and Renault (RENA.PA)should give up their bonuses.

French Prime Minister Francois Fillon announced on Tuesday at the auto summit that France would make up to 6 billion euros ($7.79 billion) available to car manufacturers, on condition that they pledged to safeguard jobs in France.

In Washington, Timothy Geithner, picked to be Treasury Secretary by President Barack Obama, took a similar tough line.Geithner said he would work to ensure that the $17.4 billion inloans to GM and Chrysler was accompanied by 'substantialchanges by all stakeholders in the companies.'

'Assistance should come with conditions to give usconfidence that we can leave the industry stronger and moreviable in the future without having to rely on government support,' Geithner said at a U.S. Senate Finance Committee hearing on his nomination.

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The worsening outlook for global auto sales led Moody's toplace Hyundai Motor Co (005380.KS) and Kia Motor Corp's(000270.KS) ratings under review for possible downgrade.

The ratings agency also said Fiat's plan to take a 35percent stake in U.S. carmaker Chrysler in exchange for small car technology would not have an impact on its rating,  which remains Major automakers are expecting 2009 sales to extend adownturn that gathered momentum in the final months of 2008 ascredit tightened and the recession deepened.

Mike Jackson, chief executive of the top U.S. dealership group AutoNation Inc (AN.N), said that January sales were weakand credit remained tight.

'March will be an interesting month. I see no hope forJanuary, February,' Jackson said in a presentation at the Automotive News World Congress in Detroit.

GM said it expected industry-wide January auto sales forthe U.S. market could drop below 10 million on an annualized basis, down from 10.32 million in December and well below the10.5 million the automaker has projected for the full year.

GM sales analyst Mike DiGiovanni said that while sales atshowrooms were showing signs of steadying, sales to rental car agencies would be down sharply in January because major automakers had little inventory to move after long production shutdowns.

JP Morgan analyst Himanshu Patel said the GM disclosure suggested that U.S. auto sales could be nearing a bottom asU.S. government-led programs begin to thaw financing for asector where almost three-quarters of sales are financed insome form.

'All of this suggests January retail showroom traffic has improved from Dec's anemic level, and more loans are probably being approved,' Patel said in a note for clients.

Meanwhile, auto industry leaders forecast deeper declines in several emerging markets for 2009.

Car sales in Indonesia could drop as much as 57 percent from the record high of 2008, Johnny Darmawan, president director of PT Toyota Astra Motor, said on Wednesday. He had previously forecast a year-on-year drop of 30 percent.

The Malaysian Automotive Association warned that sales in Malaysia could drop 12 percent in 2009 due to the impact of the financial crisis.