For the first time ever, Toyota has sold more cars and trucks worldwide than GM, in the first three months of this year. Toyota's sales for the first quarter rose 9% to a record 2.35 million compared to GM which only rose 3% to 2.26 million vehicles.
Many analysts predict that Toyota will overtake GM in worldwide sales this year. In the past few years Toyota has steadily stolen market share from GM, due to a decline of the popularity SUVs and trucks in the U.S. market. The Camry and Corolla helped raise Toyota's U.S. sales last year more than 12%. In March, Toyota's market share rose to 16% compared to 22% for GM and 17% for Ford.
GM is currently in a restructuring process that has cut production, reduced fleet sales, and cut back on incentives. The company no longer wants to just produce cars for the sake of increasing volume. Instead profitability is their new priority.
“Obviously, the news wasn’t what we wanted to hear, but at the same time, it doesn’t distract us from the business we have at hand and that’s designing, building and selling the best cars and trucks for our customers all around the world,” said GM spokesman John McDonald.
Overall GM sales have declined in the US, but in other areas of the world GM has had some growth, such as Asia and Europe. GM has increased overseas production to keep up with the demand in China, which saw a 32% jump in sales. They are also building a new factory in India.
“It shouldn’t be forgotten that we also had a record for the first quarter,” McDonald said. “As GM continues to grow, we are the leader in many emerging markets around the world.”
Even though Toyota's sales have overtaken GM, the company says that is not their ultimate goal. Instead they want to focus on having the best quality, which will in turn drive sales. Their "global master plan" is to have 15% of the world market by 2010.
In the meantime Toyota is growing concerned about a political backlash against the company in the U.S.
“We are certainly concerned,” Toyota Senior Adviser Hiroshi Okuda said earlier this year, adding that Toyota needed to “significantly” increase the number of foreigners on its board.
The company recently promoted American James Press, president of Toyota's North American division.
Expect to see the two companies go head to head this year to see who will gain the title of the "Number 1 Automaker".
Full Story: Detroit Free Press
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Comments (7)
It was only a matter of time. I mean, honestly, if GM would stop for just a minute and realize that American's think with their wallets, then they would have understood that the increase in fuel costs in recent years was going to lead many consumers to seek smaller, more economical vehicles...reliability issues aside.
Posted by Trenchtown | April 24, 2007 1:46 PM
Posted on April 24, 2007 13:46
GM gave up on this contest a few years ago. Sad, really.
Rationalizations were prepared well before the fact: profits are more important anyway, the press is harder on you if you're #1, etc.
My further thoughts on Toyota as #1 here:
http://www.truedelta.com/blog/?p=98
Posted by Michael Karesh | April 25, 2007 1:35 PM
Posted on April 25, 2007 13:35
Go toyota go toyota, go, go go...
i have a supra
ok im a toyota/lexus fanboy... but this is great newz beacause other car companies will make better cars to try to suprass each other...
dont get me wrong i think american cars suck in general, too big, ineficient engines, etc...
i like german and japanese cars...not counting the supercars....
Posted by Nelson | April 25, 2007 6:00 PM
Posted on April 25, 2007 18:00
Right, and that Tundra in the picture is the MODEL of fuel efficiency. And it's not too big with an inefficient engine or anything.
Nelson does have a good point that when a company consistently pushes the bar, that all companies have to chase that bar. For that (and lots of other things) I hope Toyota doesn't stumble.
But watch out. Being #1 makes you the biggest target.
Posted by Obviously DaMinority | May 16, 2007 3:36 AM
Posted on May 16, 2007 03:36
Toyota are now No.1 they have enough money to buy Ford,Gm because toyota stock are worth 213%more than Ford or Gm,each with toyota at around $417 per share while ford and gm are around $12.14 and $14.25 per share. hell American are inferior when compare to their Japanese counter-parts
Posted by Shadao | July 30, 2007 5:11 PM
Posted on July 30, 2007 17:11
That's right. Toyota is number one.
Number one in luxury.
Number one in trucks.
Number one in compact.
Number one in hybrid technology.
Number one in sports.
One word: Camry.
Did people really think NASCAR, which is a joke compared to F1 or WRC, wouldn't be dominated by Toyota?
Posted by junior rodriguez | March 3, 2008 10:17 AM
Posted on March 3, 2008 10:17
Its really sad to see everyone bash such an iconic american company. If not for the GM WWII may have turned out much different ,but just as it seems we have all forget in a short amount of time. 911 HAHA whats that? So i know you all have forgot about whar the japs did to pearl harbor. But its ok go buy your bmw go buy your toyota just leave off your proud to be an american bumper sticker please...............
Posted by pontiac x team | April 26, 2009 7:04 PM
Posted on April 26, 2009 19:04