| For the past several months news reports have | | | | and double digit sales growth from year to year is |
| been focusing on the declining fortunes of the | | | | common. Thus, the overseas market has been |
| world's largest automaker, General Motors, as well | | | | what has kept GM strong. |
| as on the rise of Toyota to pre-eminence. Many | | | | GM's home market though may be what causes |
| are predicting that this will be the year that | | | | the capitulation. With planned layoffs and plant |
| Toyota overtakes General Motors in sales while | | | | closings in progress, GM is dumping excess |
| others are expressing caution regarding this | | | | capacity in favor of anticipated need. Toyota, on |
| assessment. Does it really matter who is number | | | | the other hand, cannot keep up with capacity as |
| one? In many ways it does. Let's examine the | | | | demand for its three lines of vehicles -- Toyota, |
| fortunes of the Top Two to determine whether | | | | Lexus, and Scion -- continue to drive growth. |
| Toyota's quest to overtake General Motors will | | | | Indeed, if there is factory space available, Toyota |
| happen this year. | | | | will use it to produce more vehicles. So, the |
| So, why does it matter who is the top selling | | | | prediction for Toyota overtaking GM is based |
| automaker in the world? In one word: prestige. | | | | largely on available capacity and demand. |
| Being number one in any category tells | | | | Toyota, however isn't about to claim the #1 |
| consumers that you are at the top of your game. | | | | position so easily. In 2005, General Motors sold the |
| No, there isn't anything wrong with being number | | | | most cars that it has since 1978, so things are |
| two - just ask Avis - but saying that "we try | | | | not as gloomy as thought when looking at the |
| harder" doesn't equate into being number one no | | | | company from a global perspective. Growth in |
| matter how cute your commercials may be. | | | | China, capacity through its Korean subsidiary |
| General Motors' decline combined with Toyota's | | | | Daewoo, and renewed interest in several new or |
| ascension is remarkable. At one time, General | | | | modified home grown models may stem the |
| Motors produced well over half of all vehicles sold | | | | bleeding. Some are thinking that GM has cut back |
| in the U.S. Today, that number is down to about | | | | as far as it needs to go and with new models |
| 25% and falling. Toyota, on the other hand, has | | | | online including pick up trucks, SUVs, the Saturn |
| gone from being the maker of poor quality cars | | | | SKY and Aura, and others GM may be poised for |
| to being a manufacturer that everyone points to | | | | a surge in sales. |
| when building their vehicles. A true "benchmark" in | | | | None of us can predict the future, but it does |
| an industry overloaded with manufacturers. | | | | show us one thing: the battle for automotive |
| Originally, many thought that the Toyota | | | | pre-eminence will only grow stronger and neither |
| ascension would not occur before 2010, if ever. | | | | automaker can afford to take anything for |
| Although General Motors is losing market share, it | | | | granted. For consumers just like you, you stand |
| does have a strong presence elsewhere especially | | | | to benefit as quality improvements and pricing |
| in China where it is the number one automaker | | | | strategies give you the best bang for the buck. |