Toyota Motor Corp. expects demand for its fuel-efficient cars in the U.S., Asia and Europe to raise vehicle sales 6 percent in 2007, likely ending General Motors Corp.'s 81-year reign as the world's largest carmaker.
Toyota and its affiliates will probably sell 9.34 million vehicles next year, up from 8.8 million in 2006, the company said in a statement in Nagoya, Japan. Production next year will rise 4 percent to 9.42 million vehicles.
President Katsuaki Watanabe opened a $1.28 billion pickup factory in Texas last month and will start production in Russia next year. GM plans to shut 12 factories in North America by 2008 in response to declining demand for trucks and sport-utility vehicles while Ford Motor Co. is eliminating 38,000 jobs.
``Toyota has all the factors necessary to become the world's No. 1 automaker,'' said Atsushi Osa, who helps oversee $1.4 billion at Sumitomo Mitsui Asset Management Co. in Tokyo. ``It has expansion plans, the right products and their vehicles are popular.''
One of these companies has worked at building a brand built on quality and fuel efficiency. (Although Toyota has had problems this year, the press reports have stated they are working to deal with the issue.) One of these companies has relied on SUV's for its profit margin for the last 3-4 years. Guess which one is doing better?
