Toyota Motors Corporation Limited, a Japanese multinational automobile manufacturer, has finally ended the 76-year long reign of General Motors as the world’s biggest car manufacturer. Toyota Motors has recorded better sales globally than GM during the first quarter of 2007.

Why Toyota Is The Leader?

There are various reasons that have led to GM losing its numero uno position to Toyota. Some of these include heavy financial losses, several plants closing down couple with thousands of layoffs. GM has lost more than $12.4 billion during the last two years and has closed almost 12 plants in North America. The losses and closures have done nothing to affect GM’s confidence. They are positive that they will be able to utilize the increasing growth opportunities to make a resurgence and take over the number one position again. However, for the moment it seems that Toyota is set to be the leading automobile manufacturer through 2007.

Although, the situation in the U.S. is still in GM’s favor. It has 23 percent of the market share while Toyota has 16. It seems that GM is concentrating more on increasing its overseas operations while closing down its plants in North America. One of the main markets that GM is targeting currently is China. However, Toyota is working in an entirely opposite direction. Fiscal reports indicate that Toyota made a profit of $12 billion from its North American operations and is even planning to start its eighth production plant in this region. That is something GM should take a note of.

What Makes Toyota A Preferred Brand?

There is yet another interesting reason for Toyota becoming an preferred brand in the U.S. They are able to offer attractive models with exceptional quality and better fuel efficiency while keeping the price affordable for the common consumer.

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