Toyota tips GM from number one spot
Global sales rise for Toyota breaks GM's 76-year run at the topGM has lost the world number one spot to Toyota.
Toyota made the long-anticipated announcement this week with news it had sold 2.35 million vehicles worldwide during the first quarter of 2007, surpassing the 2.26 million sold by GM in the same period.
The figures included Toyota subsidiaries Hino Trucks and Daihatsu.
GM's first quarter global sales result of more than 2.2 million vehicles was a record for the company but not enough to save its place at the top. GM's result was helped by growth in China, fuelling a 20 per cent climb in the South East Asia region, and general upturn in sales with overseas subsidiaries. GM remains the top-selling automaker in China.
Toyota's export market likewise increased, expanding in most regions but sales in its domestic (Japanese) market decreased for the first time in five years. Toyota, Daihatsu and Hino made up 40.7 per cent of the domestic market for the month of March.
Toyota produced 1.04 million vehicles in its non-Japanese plants and exported nearly 700,000 units from Japan during the first quarter, and is rapidly expanding production to meet demand. Toyota recently established its fourth engine factory in China to produce 'ZR' 1.6-litre and 1.8-litre engines for the new Corolla.
GM's displacement comes only a few months after CEO Rick Wagoner declared the company would keep up the fight to stay at number one, however, the company says its focus is on profit, not size. GM is in the midst of downsizing in its own market with further plant closures scheduled.
Industry analysts suggest that losing the number one spot will actually benefit GM, bringing immediate relief from scrutiny and allowing directors to find a competitive business model. It is likely Toyota will maintain its new position 'til the end of 2007 but there's a long way to go.
According to Detroit News, GM marketing chief Mark LeNeve told Chevrolet dealers that "GM wasn't stressed about Toyota passing them" and that the "GM-Toyota race isn't over since Toyota is traditionally strong in the first quarter and GM strong in the second quarter".
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