Who's Number One?

In our efforts to predict and explain the nightly news before you get home for dinner, we bring you this story: General Motors has lost its title as the largest global automaker for the first time since 1930; Toyota took its place for the first quarter of 2007. GM lost by roughly 100,000 vehicles — Toyota sold 2.35 million cars to GM’s 2.25 million. Should GM be worried? Maybe.

The one place GM is truly giving up ground is the U.S. Toyota’s U.S. sales in 2006 were up by more than 12%, reports the Detroit Free Press, and are still growing at a healthy clip. In addition, Toyota has gained in its share of cars sold in the U.S., leaving it just behind GM and Ford.

Globally, GM is surging in areas like Asia, Africa, South America and the Middle East. Its biggest target market, China, has already embraced Buick and other GM brands. Of course, Toyota has a strong presence there, as well. 

While the total numbers say one thing, the fact that GM has greatly reduced its fleet sales in the U.S. in order to increase its revenue and residual values is also important to its turnaround plans. We don’t doubt that GM could be No. 2 for a long time, but when the margin is so slim and both companies are improving, how important are bragging rights to consumers?

GM at No. 2: Not Such A Bad Thing (CNNMoney.com)