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Tuesday, April 24, 2007

A new Number 1

We knew it was coming. . .

TOKYO (AP) _ Toyota Camry, take a bow. Prius, bask in the limelight. Strong demand for those models helped propel the Japanese car maker onto the throne as the world's largest auto seller _ at least for the first quarter of 2007.

Through a shrewd combination of investing in environment-friendly vehicles, offering sharp new models and wooing drivers with brand power, Toyota has toppled GM from the top global sales spot for the first time ever, sales figured released on Tuesday show.

Whether it becomes the world's No. 1 automaker depends on annual worldwide vehicle production, rather than sales, and final bragging rights for that won't be decided until production numbers are tallied for the whole year.

But analysts say Toyota is advancing precisely in those areas that General Motors Corp. has fallen behind, making it likely that Toyota will snatch from GM the title it has held for 76 years. ...

GM said although Toyota won the first quarter, the fight for global leadership is not over for the year. A company spokesman said it would not chase market share solely to recapture the lead from Toyota, and it has no special plan to retake the lead. ...

While Toyota appears on course to supplant General Motors this year, GM's moves to boost overseas production could keep it in the running. The company's sales in China jumped 32 percent last year to 876,747 units, making it the market leader there, and it is also building a new factory in India, another market with tremendous potential.

But analysts note that Toyota's success required long-term planning and years of hard work.

When I bought my first car in 1976, there was a very strong anti-import sentiment in this area, even if Japanese automakers had surpassed Detroit in quality. Now, though, what's an import? And what do you do if your home region depends more on Toyota for jobs than all other automakers combined?

That's a stretch, because it takes in Georgetown, Ky., but not by much.

Fact 1: Toyota builds better cars than GM. That's why it was Number 1 for the quarter.

Fact 2: The United States needs for its transportation equipment industry to be strong. The question is how it does that if the industry insists on self-destructing.