Japanese automaker Toyota is now officially the top automaker in terms of global sales overtaking erstwhile leader, Detroit-based General Motors. Toyota managed to grab the top spot from GM, which held the title for seventy seven years, despite experiencing lower sales volume for 2008. In fact, for the fiscal year ending in March 31, the Japanese automaker is expected to report an operating loss of $1.7 billion. Still, despite the dismal outlook, Toyota managed to withstand the challenges plaguing the automotive industry.

Both Toyota and General Motors reported a big drop in sales in 2008, but Toyota sped ahead of the competition. Toyota sold over 8.97 million car and trucks last year, or approximately 620,000 more than GM. However, there is little reason to celebrate for Toyota as the company’s sales were down for about 4% last year. The automaker says it will not post a profit for the first time in 50 years.

Meanwhile, GM President Fritz Henderson says the title wasn’t ‘terribly important’ to him and the company is busy finding ways to downsize its brands, maintain the strong brands and deliver strong products. For now, GM faces February and March deadlines to prove its viability to the US government in order to secure federal loans.

Source: DetNews

General Motors announced that it will invest half a billion dollars to build and develop a new compact sized car, the Chevrolet Cruze. The Cruze is set to be officially unveiled at the Paris Motor show this October. It will be built at GM’s Lordstown, Ohio plant which also assembles the Chevrolet Cobalt and Pontiac G5.

GM chief executive Rick Wagoner said the Cruze would be a significant step toward ending the automaker’s reliance on big trucks and sport utility vehicles (SUV). The Cruze will replace the Cobalt, the most fuel-efficient compact car in the US and one of GM’s top selling vehicles.

GM says the Cruze will get 46 miles per gallon, a good 9 miles more than the Cobalt. It will go on sale in Europe and Asia by 2009, with a North American debut slated for 2010.

Via Forbes