Toyota Topples Ford, Writing On Wall Coming Into Focus

For the first time since the Great Depression, Ford Motor Company (F) is not the second-largest automaker in the country.

Toyota Motor Corp. overtook Ford Motor Co. to become the No. 2 automaker by U.S. sales in 2007, using new products and relentless strategy to break Ford's 75-year lock on the position.
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Toyota's sales were up 3 percent for the year ... Ford's sales fell 12 percent, ending with a whimper a year that is expected to be the worst for the auto industry since 1998 as consumers fretted over high gas prices and the economy.

Ford corporate historian Bob Kreipke said it was the first time since 1931 that Ford wasn't second behind General Motors Corp. in U.S. sales.

In 2007, Toyota (TM) sold roughly 2.62 million cars in the U.S., compared to Ford's 2.54 million.  The company is also poised to snatch the dominant global share from long-time global share dominator General Motors (GM).

Coincidentally, Toyota is unburdened by the crippling legacy costs wrought by decades of powerful union influence on America's shrinking, unprofitable auto industry.  You'd be losing share to Toyota too if you were saddled with a $1,500 per car union handicap (slightly less than Toyota's profit per car).

The good news is that as the domestic auto industry bleeds out and is forced (despite threats of massive strikes) to trim its bloated health care and pension payouts, Congress will likely step in and force the Big 3 into keeping the veins open.  As additional losses force additional layoffs and the ratio of employees to pensioners continues to decline, the industry's ensuing death spiral should be mercifully swift.