Monday, October 22, 2007

Toyota vs GM: Who is the Largest Auto Maker?

In the world car market there is intense rivalry between Toyota and General Motors. A General Motor is an American company a Toyota is a Japanese company. For the last few years, General motors produced the largest number of cars but Toyota was not for behind. A few month ago Toyota over took GM as the largest company in the manufactures of cars. Now it seems that GM is again getting back its position as world largest automaker.

Reuters reported:

General Motors Corp (GM.N: Quote, Profile, Research) appears to have inched past Toyota Motor Corp (7203.T: Quote, Profile, Research) in global sales so far this year as U.S. sales at the Japanese carmaker slipped last quarter, but some counts may leave Toyota in pole position.

Toyota, the world's most valuable automaker worth $190 billion -- or nine times as much as GM -- said on Monday its consolidated global sales grew 7 percent in January-September to 7.05 million vehicles.

That was a shade short of GM's 7.06 million vehicles, which marked a 2 percent rise for the same period.

This fighting will continue for some time to come. However, there is one important thing that you should all remember about the rivalry of GM and Toyota. GM may be a big company but it is giving a lot of loss. On the other hand Toyota is getting a lot of profit form its car sales. It shows that the future of auto industry is brighter in Asia than in USA. GM is still largely based in USA and you know that USA is a very expensive for manufacturing. On the other hand, Toyota could spread its business globally very well and it has many factories in different Asian countries where it can make the best use of cheap labor.