Toyota set to overtake GM as top automaker

Toyota is opening new plants in Russia, Thailand and China next year to keep up with demand.

Watanabe said the company was considering adding another plant in North America to keep up with growing demand, although he did not give details.

Of Toyota's projected volume for next year, overseas production will rise 8 percent to 4.27 million vehicles while its domestic output will increase 1 percent to 5.15 million vehicles, the company said. The projections include Toyota Motor Corp.'s subsidiaries, truck-maker Hino Motors, Daihatsu Motor Co., which makes small cars.

In the U.S., the first Tundra pickup trucks rolling off of Toyota's Texas plant will arrive in showrooms in 2007, a sign of Toyota's ambitions in a lucrative sector dominated by American automakers.

Toyota has used its ample coffers to purchase significant stakes in two of GM's former Japanese alliance partners _ Fuji Heavy Industries, the maker of Subaru cars, and truckmaker Isuzu. Toyota will be even using Fuji's Indiana plant to make Camries starting in spring 2007.

GM used to be the top shareholder in Fuji, but sold its entire 20 percent stake last year as part of its efforts to raise cash for restructuring. Toyota bought an 8.7 percent stake in Fuji for about $315 million to become the top shareholder.

Last month, Toyota bought a 5.9 percent stake in Isuzu Motors Ltd., well-known for its diesel technology that Toyota is eager to gain _ half a year after GM sold its entire 7.9 percent stake in Isuzu.

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