Since the Great Depression, General Motors Corp. has been the world's largest automaker, a symbol of American economic power.
But on Tuesday the Detroit company lost its crown to Toyota Motor Corp. of Japan, which has been relentlessly chipping away at GM's global dominance. And now, as Toyota pulls into the passing lane, GM will only appear smaller in its rearview mirror.
"I've been in this business for 37 years, and what I'm seeing now is the continuation of a trend that I've observed for 37 years," said Jim Hossack, a consultant with AutoPacific Inc. in Tustin. "Toyota is getting stronger and stronger, and the Detroit Three are getting weaker and weaker."
Barring a merger of major auto-producing rivals, it's unlikely that Toyota's leadership position will be seriously challenged anytime soon. Years of missteps by the U.S.-based automakers have allowed Toyota to grab the lead by efficiently producing high-quality cars that are a hit with motorists.
"I don't see that there's any other company that will be able to exceed Toyota in terms of scale in the near future," said Marvin Lieberman, professor of policy at UCLA's Anderson School of Management.
The Japanese automaker said Tuesday that it sold 2.35 million vehicles worldwide during the first three months of the year. That topped the 2.26 million cars and light trucks sold by General Motors.
Toyota has been gaining on its U.S. rivals for several decades as motorists sought out cars that were better built, had higher resale values and, increasingly, got better gas mileage.
The event wasn't marked by celebrations at the automaker's global headquarters in Toyota City near Nagoya, Japan, or at its numerous U.S. assembly plants and sales and design offices. The key worldwide sales number wasn't even included in the company's announcement of its first-quarter vehicle production.
"It's only a quarter," deadpanned Mark Templin, vice president of Toyota USA's Scion division in Torrance. "It's just really not our focus. We never talk about it."
Toyota sold its first car in the U.S. in 1957, introducing a boxy, pokey four-door called the Toyopet Crown to skepticism, if not outright derision. Fifty years later, the company is wary of appearing too successful, fearing a possible backlash in the U.S. as it grabs buyers from GM, Ford Motor Co. and Chrysler Group.
