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Toyota falls just short of long-time champion GM

Toyota Motor Corp indicated yesterday its sales for last year were a notch below General Motors Corp (GM), which had been widely expected to lose its crown as the world's top-selling automaker after 76 years.

But even if history was not made last year, analysts said the dynamic in the sector remained the same, with Japanese automakers racing ahead while the Detroit Big Three try to revive their fortunes.

Toyota said its latest estimation was that it sold 9.366 million vehicles last year, only around 3,500 vehicles fewer than GM, which on Wednesday reported global sales of 9,369,524.

Toyota does not give exact sales figures. Earlier this month, it had estimated global sales of 9.370 million last year, leading many industry watchers to conclude it had finally surpassed GM.

The results did not surprise analysts, who saw the slim difference as a sign that Toyota would replace GM as the top seller this year.

"This year there is a high possibility that the two will reverse positions. In 2007, GM barely escaped, but I think such a situation would be difficult in 2008," said Kazuhito Sasaki, auto analyst at Tokai Tokyo Securities.

Japan's top automaker, the pioneer of eco-friendly hybrids, has grown rapidly on its popularity in the US and has been careful not to gloat about its success, fearing a protectionist backlash.

Detroit-based GM on Wednesday said that the hard-fought race with Toyota was too close to call.

GM has been the world's largest best-selling automaker since 1931.

GM sales chief analyst Mike DiGiovanni said the US automaker is already reaping the benefits of its massive restructuring plan with a renewed focus on long-term profitability rather than its total sales figure.

The US giant now relies on overseas sales for most of its business and has become the first global automaker to sell more than 1 million vehicles in China.

But analysts noted that while GM sales grew 3 percent last year, Toyota's shot up by 6 percent.

"Putting numbers aside, what is important is that the impetus between the two is different," said Yasuaki Iwamoto, an auto analyst at Okasan Securities.

"Although GM is increasing sales in emerging markets, looking at overall global sales Toyota clearly has the upperhand in terms of impetus. That is an undeniable fact," he said.
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