Toyota Motor Corporation is the largest automaker in Japan. Now, it has become the largest automaker in USA. In 2008, the Japanese automaker crossed General Motors in terms of sales volume. However, the ongoing economic crisis hit the company pretty bad. General Motors, one of the “Detroit three” and the largest auto maker in USA is in a pretty bad shape because of poor sales. The company produces cars that are not fuel efficient. Moreover, people have stopped buying cars due to economic crisis. Tatsua Mizuno, analyst, Fitch Ratings said:
"This is not a case of Toyota being stronger but that GM is so weak at the moment,…Toyota had been doing quite well for a few years and even the first half of last year was not bad, but even so they have failed to build appealing new vehicles…..For the fiscal year that starts in April, we expect Toyota's weak performance to continue,….It's something we expect to see across the whole auto sector, particularly if the yen continues to appreciate."
In the ongoing fiscal year that ends in April, Toyota sold 8.97 million vehicles compared to GM’s 8.35 million. Due to global economic crisis sales of Toyota fell by 4% and GM 10.8%. The company is taking various cost cutting measures including laying off its employees and encouraging consumers to buy cars. Now the million dollar question is, will Toyota retain its top position.
Related article:
Telegraph.co.uk
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