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Will Toyota Dethrone GM?

Toyota Motor Corp. has dethroned Ford Motor Co. as the second largest automaker around the globe. Now that it is already in the top two positions, critics are saying that Toyota is eyeing the top position and is planning ways to overthrow General Motors Corp. In addition to this, the company has announced its ambitious plan to produce 9.2 million vehicles worldwide in the year 2008.

The soaring oil prices have been a blessing in disguise for the corporation since more drivers turn to fuel-efficient cars. This has made Toyota Camry, Corolla and Prius hybrid a success. Further, due to high demands of said vehicles, Toyota Prius parts as well as that of Camry and Corolla, also make good in the market. GM and Ford, on the other hand, have relied on their sales for larger vehicles. Furthermore, the shift of consumers to small cars made a devastating drop in sales figures.

In the year 2005, Toyota has sold 8.13 million vehicles worldwide. This year it is expected to sell a total of 8.85 million vehicles. According to Shotaro Noguchi, auto analyst with Mitsubishi UFJ Securities Co. in Tokyo, "American automakers are in trouble because their products aren't selling." He added that the main challenge is to keep profitability up. "It's a positive and aggressive plan," he said.

Katsuaki Watanabe, Toyota's president, declined to give any statement on the vehicle production for 2008. However, the president noted, ""We are aiming for steady growth through strengthening all our operations."

With these growing sales figures in favor of Toyota, GM through its spokesperson John McDonald said, "We respect our competition around the world, and were realistic about our challenges and opportunities. We know we have to earn the right to maintain our global sales leadership, and were doing that day after day."

Toyota's profit has increased by 39 percent amounting to $3.1 billion in its first fiscal year. On the contrary, GM has lost $3.4 billion in the April-June period.

Toyota Parts Online
Toyota Prius parts
Mark Clarkson is a 35 year old marketing consultant for a leading auto parts store. This native of Denver is also an offroad enthusiast.

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