Toyota overtake GM to become biggest car manufacturer

Toyota became the world’s top-selling car manufacturer yesterday when it announced first quarter sales for 2007 of 2.35M worldwide, an increase of 9%. General Motors, who had previously held the title since 1931, sold 2.26M.

The flag bearer for the Lean methodology - the principles of which are based on its own Toyota Production System - Toyota has enjoyed record sales this year, making big gains in the US car market, the largest in the world. Its pioneering petrol/electricity hybrid, the Prius, has been hugely successful with year-on-year gains, whilst the Camry is the most popular car in the US.

But, as befitting a company who constantly extol the virtues of quality over quantity, the news was respectfully played down.

"Our goal has never been to sell the most cars in the world," Toyota spokesman Paul Nolasco said. "We simply want to be the best in quality. After that, sales will take care of themselves."

Toyota President Katsuaki Watanabe – ironically on a visit to Detroit, the heartland of the American car market - also played down the significance of passing GM, saying only that he had incomplete numbers.

Technically, Toyota can not properly claim the title of the world’s biggest car manufacturer until the full-year numbers for 2007 are released early next year. However, Toyota continues to dwarf its rivals in almost every other measure, including profits, market capitalization and cash reserves, but also in efficiency.

In 2006, Toyota's global production surged 10 percent to 9.018 million vehicles, while GM and its group automakers produced 9.18 million vehicles worldwide -- a gap of about 162,000. In the first quarter, Toyota made 2.37 million vehicles worldwide, while GM had expected to produce 2.34 million