Toyota on its way to overtake GM as the leading automaker
Toyota might have a chance next year to topple General Motors as the worldâ€™s largest automobile manufacturer. The company is aiming to increase their production by around 10% worldwide and should be able to manage production of around 9.06 million vehicles. This can potential bring it a lot closer to what GM might be able to manage in 2006 considering the financial problems they are going through in their North American operations.
If this happens, it would come just around three years after the Japanese auto giant overtook Ford Motor Co. for the number 2 slot in 2003. Toyota is expanding their operations around the world to get this boost in their manufacturing capacities. GM and Ford on the other hand are closing plants and cutting workforce to get back to profitability in their domestic operations.
GM does not provide sales or production forecasts on an annual basis. However, market analysts believe that the closure of plants could potentially result in them being overtaken by Toyota for the first time in more than seven decades. If they could not do it in 2006, Toyota should be on their way in the year after that. GM would require sometime to settle back and get their operations in order to boost their sales in their various markets.
Toyota already is the biggest automaker in terms of market capitalization with a value of around $177 billion. GM and Ford are listed at 10th and 13th position on this chart. They are also one of the most profitable auto company in the world with analysts’ forecasts putting net profit at 1.245 trillion yen ($10.7 billion) in the year to March 2006.