Toyota is likely to replace General Motors as the world’s largest automaker, despite Toyota’s announcement last week that it does not expect to turn an operating profit for the current fiscal year. Toyota is also likely to emerge as best-selling brand in the United States for the first time ever, surpassing Chevrolet and Ford.
The Oakland Press calls the potential victory “bittersweet” because of the Japanese automaker’s recently-announced woes. Toyota is could post its first operating loss since 1941 – and the largest loss it has ever posted.
Toyota’s November manufacturing output was down 27 percent and December figures are expected to be even lower when they are announced after the new year.
Japan’s Chubu Keizai Shimbun newspaper reported that Toyota was planning deeper output cuts of 34 percent for January and 39 percent for February. Moody’s Investors Service downgraded its investment outlook for the Japanese auto industry from stable to negative, further signaling the decline.



12/29, 10:58 AM
posted by:
johnnycanuck
The world needs to have its pulse checked.
12/29, 11:46 AM
posted by:
bradleygt
^ thank you.
I have nothing against Toy or Honda personally, they make good cars and i know lots of folks love them. BUT they are bland, boring, underpowered, heartless vehicles imho.
Give me a Chevy, Dodge, VW, Ford, Miata, Subaru, Caddy, BMW or something with some soul!!
12/29, 12:16 PM
posted by:
Borat
bradleygt, soul cost extra. Most of consumers refused to pay for it. Acura was manufacturing very cool NSX, until there were no takers, Honda S2000 was a great little roadster competing directly with Boxster, Supra was a great car and even Celica was decent. However, it was Mr. & Mrs. Consumer who put kabash to those aspirations.
BMW does it only due its high cost and Mr. & Mrs. don’t intent to pay so much for cars without propeller. The rest of industry is on life support. If we (enthusiasts) want to drive enthusiastic cars we can shell out for quirky performance machines. But I doubt, that there are enough people to support those endeavors during recession.
12/29, 12:30 PM
posted by:
sj79
Great, Toyota can become #1 by shrinking a little less than GM. This may not last. Toyota’s ascension to #1 is mostly based on growth in the US market. The US market is no longer growing and Toyota’s sales here have hit a wall. Going forward the US market is going to be a smaller piece of the global pie and GM is ahead of Toyota in China which has far more growth potential than the US market. Those who think TOyota is destined to grow and expand marketshare every year may be disappointed. Now that gas is cheap and the economy is affecting all automakers I dont see Toyota gaining much share in the US in 2009.
12/29, 12:50 PM
posted by:
beatusmongous
We drivers (those of us that like cars with soul) are a dying breed. And this is Evidence Exhibit A.
12/29, 2:10 PM
posted by:
tyler_is_aero_tt
Correct me if I’m wrong, but haven’t they been the world’s largest automaker for a couple of years now?
12/29, 2:46 PM
posted by:
bradleygt
nope. GM has been for like 70+ years. Toy just recently overtook Ford for #2.
And btw, I love LLN, but pleas, GIVE US some sources or stats to back up this ‘claim’ of how Toyota is going to be #1…what sales data, what #’s are they projected to win by, etc.
otherwise I may switch to a career in journalism if all i need for a story is the ability to make a prediction:
” Despite Slumoing economy, Aston Martin will overtake all world governments with violent coups!”
12/29, 3:28 PM
posted by:
LeftLaneVy
how does that camry in the picture breathe?
12/29, 3:36 PM
posted by:
hummah
Soul is overrated and highly subjective… I have a VR6 Jetta which is loaded with both soul and character and is a blast to drive. It is also an unreliable piece of junk. I can’t see how GM, Ford, etc products have any more soul than a Toyota. Does a Cobalt have more than a Corolla?
The market has spoken, and Americans are willing to cast aside “soul” in thier vehicles for a well built product from a manufacturer that will stand behind what they sell.
12/29, 3:37 PM
posted by:
yarddog82abn
Any Cinderella team and can win one championship, But only the Great Champions that have stand the test of time will be forever be known as the Champ…
Enjoy It Toyota, the clock is ticking, remember what happens at midnight…..
12/29, 3:41 PM
posted by:
sj79
“The market has spoken, and Americans are willing to cast aside “soul†in thier vehicles for a well built product from a manufacturer that will stand behind what they sell.”
GM sells more vehicles than Toyota in the US. How can you be so stupid? This is about GLOBAL sales. Gm doesnt even sell much of anything in Japan. Gm is ahead of Toyota in the 3 largest markets- US, Europe and China. This lead for Toyota is going to be very slim.
12/29, 4:32 PM
posted by:
jackjimturkey
This has been in the offing for some time.
12/29, 6:52 PM
posted by:
Architect
This is disappointing news, though not unexpected.
But I agree with sj79: assuming GM (or anyone) can make it though this economic free-fall, GM is in a better position to maximize future sales. And for what its worth, I think GM’s newest products are a lot more interesting than the “soul-less” appliances Toyota produces. Total vanilla. I think this is already an indication of how hard it will be for them to stay on top, as the temptation is to be complacent, take little risk (design), and let quality slip – all currently plaguing Toyota.
12/30, 4:39 AM
posted by:
Kaizen
SJ79: Actually, projections show that Toyota will exceed GM sales in China for 2008. http://www.gasgoo.com/auto-news/1008112/Toyota-tops-GM-in-China-Jan-Sept-car-sales.html
12/30, 9:12 AM
posted by:
sj79
kaizen,
I read that article and according to the numbers GM is ahead of Toyota in china. The article was about Toyota overtaking GM globally. It said GM has sold 750k vehicles in china this year compared to 477k or so for Toyota. It said Toyota has sold more cars and SUVs than GM has sold cars but not that Toyota outpaced GM overall in China. VW is #1 and GM is #2 in China.
12/30, 9:16 AM
posted by:
sj79
“Total vanilla. I think this is already an indication of how hard it will be for them to stay on top, as the temptation is to be complacent, take little risk (design), and let quality slip – all currently plaguing Toyota.”
Toyota is becoming an old man’s brand. Its that simple. The same thing that happened to GM and Ford is happening to Toyota slowly. The cars that people watched their parents drive are not seen as cool by their kids. That’s just the way things work. Now people in their 20s and 30s see Toyotas as the cars their parents drive (same for Lexus) and thus they are gravitating towards Hondas, Minis, Mazdas and European cars. Not enough of those people are moving towards American cars but I think that could change. Many folks in the 25-35 age range really dont have bad experiences with domestic cars to draw from. They dont like or consider domestics because they were raised in import only families and their parents always taught them the best cars are from Japan.
12/30, 10:29 AM
posted by:
sj79
“http://detnews.com/apps/pbcs.dll/article?AID=/20081229/AUTO01/812290330/1148
12/30, 11:36 AM
posted by:
darx_ider
Why does it bother guys so much that Toyota is the world largest automaker?? Toyota is larger and way better that any American automaker!
12/30, 10:19 PM
posted by:
PW
yarddog82abn, your point is moot because GM has simply been around longer than Toyota. The automobile was invented in the United States, long before Japan was even a world power. Your biased hatred for all things Japanese is obvious.