GM has been on the offensive with new product ever since emerging from its bankruptcy in 2009, with many of its latest releases winning awards from industry experts and ranking above Toyota’s comparable offerings.The company also has a raft of brand-new product that it will be rolling out within the coming months, including the 2013 Malibu midsized sedan that will be built and sold globally.
GM also has a sizable footprint in China, and plans on expanding its presence to capitalize on the growing market. The automaker pledged a $5 billion investment in its operations its operations there to help meet a goal of 5 million vehicles sold in China by 2015. GM is also working with local partners SAIC and Wuling to create Baojun, a low-cost sub-brand for the Chinese market.
Toyota’s upper hand appears to have slipped over the past few years. While it may have taken the global sales crown, it only eclipsed GM by approximately 33,000 units in 2010. In its quest to become the biggest automaker in the world, consumers have seen witnessed company’s once-legendary quality stumble. Subsequently, a Harris International poll of Toyota’s corporate rating has seen the automaker drop from 20th place out of 60 firms to the 43rd slot. This comes after waves of recalls for over 10 million of vehicles, the largest of which centered on sticking accelerator pedals and floormats.
Toyota is also expected to lose sales largely because it’s lost a significant chunk of its production and supply base. Japan’s earthquake, which struck on March 11, shuttered factories and suppliers, and to this day affects just how many cars Toyota can roll down its assembly lines on a daily basis. The automaker will not return to full production until November of this year and expects to lose approximately 500,000 units in production this year.
So, this is good news for GM, if bigger is, in fact, better, but industry analysts insist companies need to be weary of earning that top spot.
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