Stumble it!

No king reigns supreme forever and the automotive market is no exception. GM’s 76 year reign at the top of auto industry appears to be over. GM reported 9,369,524 vehicles sold in 2007, where as Toyota reported total sales of 9.37 million units. GM was, up until present day, the undisputed king of the U.S. car market, but plummeting domestic sales, coupled with Toyota’s growing share of the U.S. market has changed all that. The consulting firm Global Insight claims that while the growth and expansion of the two auto giants has been virtually identical, GM has not been able to mirror the success it has enjoyed internationally, in it its own backyard. GM has severed ties with low profit business ventures this past fiscal year and this is one strong indicator that would explain the steep drop in production. Ironically, GM reported its second best yearly sales total in the past 100 years. GM leaders believe that their new business strategies have resulted in more marketing muscle in emerging markets like China and India. Over the past few years, globalization has fueled a heated auto market as industry tycoons via for control of the global market. The movement has been further motivated by slow growth in auto markets such as the U.S. and Europe, not to mention the shrinking market in Japan. When asked about the coveted number one ranking, Toyota executive downplayed the question as insignificant. Some experts believe however, that Toyota is deathly afraid of U.S. political backlash regarding this matter and are trying to maneuver away from political scrutiny by economic experts. Japan has long been bashed for not promoting fair auto practices in its domestic market. Japan has also been accused of manipulating the value of the Yen, thus keeping exports cheaper. Toyota’s ascension to the top of the auto sellers list is also heavily encouraged by outside factors. Soaring gas prices have caused consumers to shy away from GM’s trucks. With Toyota investing in hybrid models for the near future, this trend could continue to swing in their favor. It should be noted that Toyota refused to announce exact auto sales for 2007 and instead, provided the public with what they claim is a rounded figure.