DETROIT — General Motors is almost certain to claim the title of world’s biggest automaker this year, retaking the top spot from Toyota, which has been hurt by production problems since the Japanese earthquake and still can’t escape the shadow of major safety recalls.
The No. 1 title would cap GM’s remarkable comeback from bankruptcy. GM’s sales are up, mainly in China and the U.S., and its cars are better quality than in the past, especially small ones.
Even though GM came within 30,000 sales of Toyota last year and began strong in 2011, any sales victory this year has more to do with Toyota’s problems.
First, a series of big recalls has ballooned to 14 million vehicles worldwide and damaged Toyota’s reputation for reliability. That has spurred loyal buyers to look at other brands. Second, the March 11 earthquake and tsunami in Japan curbed Toyota’s car production.
On Friday, Toyota said its factories worldwide won’t return to full production until November or December. That means buyers across the globe may not be able to get the models they want. Already the crisis has cost the company production of 260,000 vehicles.
Last year, Toyota sold 8.42 million cars and trucks, barely ahead of a resurgent GM, which sold 8.39 million. GM held the No. 1 spot from 1932 until 2008.
Three years ago, GM was hobbled by enormous debt and a giant bureaucracy. Its quality was suspect, it lost billions and had few products other than pickups that buyers found appealing. After a government bailout, a leaner GM emerged from bankruptcy with new vehicles and a focus on Chevrolet, Buick, GMC and Cadillac. Since then, GM has come up with hits including the Buick LaCrosse luxury car and the Chevrolet Cruze compact.
GM has a much stronger presence than Toyota in China, now the world’s largest auto market. Through March, Toyota sold 208,000 vehicles there, but GM and its joint ventures sold more than three times that.
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General Motors has come back swinging. It has stronger sales in the U.S. and China — the world’s largest auto market — while Japan’s March 11 earthquake and tsunami have curbed Toyota’s car production. That will leave some customers unable to find the vehicles they want and prompt them to look at other brands.
The Numbers: GM held the title of world’s largest automaker by sales for 76 years until losing it in 2008. But GM came out of bankruptcy protection in 2009 leaner and with a host of new vehicles. GM sold 8.39 million cars and trucks last year, just 30,000 short of Toyota’s sales.
The Reasons: GM is making better products and finally has decent small cars. While GM gains, Toyota struggles. The company said factory production worldwide won’t return to normal until at least November. Also, Toyota hasn’t gotten past a series of embarrassing safety recalls.
The Prediction: GM last year was only a day’s worth of sales behind Toyota. With Toyota losing 260,000 or more units of production already, it’s almost certain that GM will retake the rank of No. 1 by sales.
The Associated Press
