Number 1: GM versus Toyota

"We're going to fight to keep the position, and if one day we lose it, we'll fight to get it back," GM's Rick Wagoner told some reporters yesterday at GM headquarters when asked about Toyota surpassing GM as the world's largest automaker.

Interestingly, Toyota has claimed that holding the number one spot doesn't mean very much. "A perceived sales challenge for global leadership is not something we're even thinking about," said spokesman Irv Miller. Rather Toyota is focused on quality, customers and the new Toyota Tundra. (more)

Sure, it probably means more to Toyota than the company admits, but I bet it doesn't really matter much. Often times, being the best doesn't mean being the biggest.

Over the years GM and the rest of the Big 3 have significantly improved the quality of their vehicles and they have become far more efficient at producing their vehicles. Really, the only thing left is leadership in product.

The success of the Toyota Prius gave many consumers the perception that Toyota was the most advanced automaker in the world. Sometimes perception is all that matters in sales.

GM should forget about being number 1. They should focus on the best products. More important, they need to create a new perception of GM. They need to shock the world with innovation, with a product that separates GM from the rest of the auto world, as Toyota did with hybrid cars.

One thing is certain, however, GM will not do it with SUVs, unless it is a 50 mpg+ SUV. Consequently, Mr. Wagoner should forget the pep talks and put a revolutionary product where his mouth is.