Transfer of Power in Auto Industry Could Be Imminent: Trefis

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (Trefis) -- In 2008, Toyota(TM) surpassed GM(GM) as the world's largest car manufacturer by aggressively expanding in North America, while most American auto majors were struggling due to the credit crisis.

In 2011, the global automotive market looks set to face a reversal of fortune, and this time, the battleground will be Asia. Both Toyota and GM compete globally with other automakers like Ford(F), Daimler(DAI), Honda(HMC), Hyunda and Nissan

The recent 2011 first-quarter results indicate that GM could be on the verge of regaining the top spot on the global vehicle bestseller list. While GM's vehicle unit sales surged ahead by 11% year-on-year, Toyota's vehicle unit sales dipped by around 12% during the same period.

While GM has managed to restructure its business after bankruptcy and is posting impressive earnings growth, Toyota has seen a variety of problems since its massive vehicle recalls in the U.S. last year. With China being the largest auto market in the world and with rapid growth in many Asian auto-markets, a dominant position here could provide a spark to regain the top spot on the vehicle bestseller list.

GM has managed to corner an impressive market share in China , while Toyota and other Japanese auto majors are cutting back on their global production due to auto parts supply disruptions after the tragic earthquake in Japan.

Slumping Japanese consumer confidence indicates that Toyota's woes are likely to continue over the short- to mid-term. You can drag the trend lines in the modifiable charts above to see the impact of these trends on GM and Toyota's respective stock values.

See our full analysis for Toyota stock and GM stock.

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