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Toyota Tops GM For First Time
Figures Represent Only Quarterly Sales Results
POSTED: 3:02 am EDT April 24, 2007
UPDATED: 1:23 pm EDT April 24, 2007
TOKYO -- General Motors, after more than 75 years as the No. 1 automaker in the U.S. and the world, has been surpassed by Toyota.WDIV-TV business editor Rod Meloni said this is something that had been foreshadowed.In the first quarter, Toyota sold 2.35 million vehicles, while GM sold 2.26 million, Meloni said.
Meloni said this is something analysts had predicted but weren't expecting these changes until later on in the year -- not in the first quarter.Meloni said Toyota -- which has 14 plants in North America and will open two more in the next three years -- has had the No. 1 selling car for the last several years in the Toyota Camry. He added that Toyota has built a reputation for quality and for building better fuel efficient vehicles.On GM's behalf, analysts said the automaker has hit bottom, but they are also in the process of building more fuel-efficient cars. The bottom line, analysts said, is for GM to stay on course with its turnaround plan.GM announced a restructuring plan in November of 2005 that called for closing 12 plants by 2008, slashing its workforce, reducing capacity and cutting costs."Toyota was expected to surpass GM in sales, so it's certainly not a shock," Edmunds Auto Analyst Michelle Krebs said. "It's also not the end of the world, but it's not a good trend."Krebs said it's not great for GM's image, but she believes the automaker would be mistaken to play the sales race with Toyota. She said the company really needs to focus on their plan and being profitable.Meloni said three years ago GM was building and selling, but not making a profit. He agreed with Krebs and said GM's best bet right now is to continue to retrend.
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