NEW YORK (CNN Money) -- General Motors is poised to recapture the title of world's largest automaker, a distinction it lost to rival Toyota Motor when global auto sales collapsed in 2008.
GM nearly caught Toyota (TM) last year, finishing only 28,000 vehicles behind its Japanese rival. In the first quarter, it moved solidly ahead of Toyota, selling 2.2 million vehicles, an increase of 11%.
Toyota sales dropped 12% to 1.8 million vehicles, putting the company in third place behind GM and Volkswagen Group, which sold nearly 2 million vehicles. Ford Motor (F, Fortune 500) was No. 4 in global sales in the quarter with 1.4 million vehicles sold.
"Barring any outside, unexpected events, it's very likely GM will surpass Toyota," said Rebecca Lindland, director of strategic review for IHS Automotive, an industry research firm. "It might seem like they haven't earned it, that the runner next to them tripped and stumbled. But it is a reflection of all the work they've done that they're in contention to become No. 1 again."
GM has not released any sales targets for the company. But it is the leader in the two largest markets for auto sales, China and the United States, and it is gaining market share in both markets. Those two markets are also enjoying rising industry wide sales.
Lindland said GM will benefit more from the title than it did the last time it was No. 1. Then, the position was driven by the Detroit automaker selling many of its vehicles at a loss in order to keep plants operating, since it was burdened by labor contracts that limited its ability to close plants and cut staff it didn't need.
"If GM becomes No. 1 again, it'll do so profitably. That's what's exciting," she said.
GM nearly caught Toyota (TM) last year, finishing only 28,000 vehicles behind its Japanese rival. In the first quarter, it moved solidly ahead of Toyota, selling 2.2 million vehicles, an increase of 11%.
Toyota sales dropped 12% to 1.8 million vehicles, putting the company in third place behind GM and Volkswagen Group, which sold nearly 2 million vehicles. Ford Motor (F, Fortune 500) was No. 4 in global sales in the quarter with 1.4 million vehicles sold.
"Barring any outside, unexpected events, it's very likely GM will surpass Toyota," said Rebecca Lindland, director of strategic review for IHS Automotive, an industry research firm. "It might seem like they haven't earned it, that the runner next to them tripped and stumbled. But it is a reflection of all the work they've done that they're in contention to become No. 1 again."
GM has not released any sales targets for the company. But it is the leader in the two largest markets for auto sales, China and the United States, and it is gaining market share in both markets. Those two markets are also enjoying rising industry wide sales.
Lindland said GM will benefit more from the title than it did the last time it was No. 1. Then, the position was driven by the Detroit automaker selling many of its vehicles at a loss in order to keep plants operating, since it was burdened by labor contracts that limited its ability to close plants and cut staff it didn't need.
"If GM becomes No. 1 again, it'll do so profitably. That's what's exciting," she said.
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