It's been a foregone conclusion for quite some time that Japanese carmaker Toyota Motor Corporation (NYSE:TM) has plans to soon become the world's largest automaker, surpassing General Motors Corporation (NYSE:GM) in generations as the world's biggest. Toyota's knack for making reliable, designer automobiles while not sharing GM's high-cost employee burdens and pension/health care costs has made it the darling of the industry. That alone separates the success/non-success of the both companies, and it's huge. Although GM cars may indeed be very reliable, the perception is that Toyota is a much more quality-built auto than any GM. Remember, perception is reality.

Toyota, which is aiming to increase production by 40% by 2008, may just well unseat GM's place atop the "largest automaker" throne in 2007. Although something as trite as bragging rights is probably not Toyota's aim, the company has not yet lost its focus of excellent cars and trucks and the dependability record that goes along in the glove box of every Toyota vehicle.

But what would a GM-Ford merger do to the plans by Toyota to become the world's largest? More than likely it would delay the dethroning. It might even throw enough grease into the monkey machine to get a Toyota plan off track. A combined GM and Ford would have unparalleled reach globally and would most likely streamline itself into a nimble and focused corporation again that does not bleed billions each fiscal year. Toyota and Honda, though, would not sit still and Toyota would still aim to become the world's largest automaker. Maybe by 2010 we'll all know, but before then, stay tuned to a web browser near you.

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