Toyota (NYSE:TM) has enough problems. It lost its No.1 place in the Consumer Reports reliability survey. It had to recall several thousand of its cars in Japan. It trades near its 52-week low.

According to Bloomberg "GM (NYSE:GM) sold 7.06 million vehicles through September, taking a lead of 10,000 units over Toyota's 7.05 million, the two companies said in separate statements. At the end of the first half, Toyota led by 39,000 vehicles. "

Toyota loyalists might well ask what happened. GM is doing well in South America and holding it own in Europe. But, to a large extent the biggest US car company has built a China strategy which puts it in the lead in that market neck-and-neck with VW.

But, most important, GM has stopped its sales slide in the US. In each of the last two months sales have been flat to slightly up, and it appears that its new models are catching on. Its crossovers are selling especially well as are its new and more fuel-efficient sedans.

With a new UAW contract under its belt, GM now has a chance to build cars in the US for about the same cost as Japanese rivals. GM may not only sell more cars. It might also make money on most of them.

Douglas A. McIntyre is an editor at 24/7 Wall St.

GM steals sales lead from Toyota for first three quarters originally appeared on BloggingStocks on Mon, 22 Oct 2007 09:00:00 EST. Please see our terms for use of feeds.