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Toyota Surpasses G.M. in Sales

Gains in markets around the world take Japanese company to the top. Full-year lead is widely expected.

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Toyotas in a row

Toyota toppled General Motors as the world's largest carmaker, outselling the American giant in the first quarter and ending its 76-year reign at the top of the heap.

The Japanese company said its sales jumped 9 percent worldwidein the first three months of 2007. It sold 2.35 million cars and trucks in the first quarter, compared with G.M.’s 2.26 million.

Analysts believe that Toyota will outsell G.M. for the full year—traditionally the measure used to anoint an automaker as the world's biggest—and, most importantly, will post a bigger profit.

Many of Toyota's gains have come in the U.S., where it now operates 11 assembly plants. Toyota's higher-mileage sedans and minivans, as well as its hybrid Prius, have become increasingly popular among drivers worried about gasoline prices. Last year, Toyota’s sales in the U.S. rose 12.9 percent.

High energy costs have had the opposite effect on U.S. automakers, which have made most of their profit from sales of thirsty pickups and sport-utility vehicles. Toyota surpassed Chrysler in the U.S. in 2006 and now has a 16 percent share in the U.S. market.

Other Japanese carmakers have also experienced robust sales gains in North America, the Financial Times reported. Honda, Japan's No. 2 automaker, reported record overseas production for the 10th consecutive year, and in 2006, Mazda posted its best sales results in 10 overseas markets.

Toyota was characteristically circumspect about the news. "Our only objective is to be No. 1 in terms of quality," a company spokesman said. "We'll let the numbers speak for themselves."


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