Toyota tops GM in global sales
Strips GM of global supremacy for first time in more than 75 years

GREG KEENAN

AUTO INDUSTRY REPORTER; With files from Associated Press

The automotive juggernaut called Toyota Motor Corp. has rolled to another milestone, surpassing General Motors Corp. to grab leadership in global sales for the first time.

The signs of success are evident all over - in Woodstock, Ont., where more than 45,000 people have applied for 2,000 jobs at a new factory that will open next year; in the U.S. market, where Toyota's passenger car sales surpassed those of GM for the first time ever in March; and on dealers' lots throughout the United States, where Toyota vehicles are sold on average in 34 days, less than half the time that GM vehicles sit.

The changing of the guard on a worldwide basis has been approaching for some time, as Toyota surpassed Ford to grab second spot in global sales earlier this decade and stands a strong third in the total U.S. vehicle market ahead of the Chrysler division of DaimlerChrysler AG.

Toyota's rise is long term, not sudden, said John Paul MacDuffie, a professor at the Wharton School of Business at the University of Pennsylvania. It's based in part on a relentless push into all segments of the market, a reputation for quality that other auto makers envy and leadership in hybrid vehicles, which generates an immeasurable amount of goodwill as consumers grow increasingly concerned about the environment.

But there's more to it than that, Mr. MacDuffie noted.

"They're not perfect and what we've all learned about Toyota is that part of what they're really good at its dealing with problems and setbacks and turning them into an opportunity to learn and improve. That may be the most powerful capability of all," he said.

Toyota sold 2.35 million vehicles in the January-to-March period, compared with 2.26 million for GM. If that trend continues for the rest of the year, it will mark the first time in more than three-quarters of a century that a company other than GM was at the top.

The rival companies actually share ownership of an assembly plant in Fremont, Calif., that turns out the Pontiac Vibe for GM and the Corolla compact and Tacoma pickup truck for Toyota. Part of the turmoil now roiling GM and its Detroit-based rivals - which are shutting dozens of plants and eliminating thousands of jobs - arises from years of Toyota chipping away their market share in North America.

One way to view this change is that Toyota is an Asian company that has had great success in North America, while GM is a North American company that has had limited success in Asia, said industry analyst Dennis DesRosiers, president of DesRosiers Automotive Consultants Inc. of Richmond Hill, Ont.

Mr. DesRosiers noted, however, that he was informed by GM officials during a trip to China last week that their company holds about 35 per cent of the light truck market in the world's most populous country, which is expected to experience explosive growth during the next decade and even beyond.

Sales in other emerging markets such as Latin America are also growing.

In addition, GM is dramatically reducing its costs, slashing low-profit sales to rental companies and other fleet buyers and revamping its product lineup.

GM chairman Rick Wagoner vowed in an interview in January that his company will battle hard to retain top spot and said he will not be happy if GM falls to No. 2.

"I think you're going to see these two companies fight it out for this position long term," Mr. DesRosiers said.