Japan's Toyota has overtaken US rival General Motors to become the world's biggest carmaker, a spokesman for the company has said.

According to company figures, Toyota sold 2.348 million vehicles in the first three months of 2007.

That compares with General Motors (GM)' sales of 2.26 million cars and small trucks during the same period.

Japanese carmakers have been boosting foreign sales and making gains in the US, the world's largest car market.

Heat

Toyota has enjoyed strong sales on the back of the success of its pioneering petrol/electricity hybrid, the Prius, and new models such as the popular Camry Sedan and Corrola.

Meanwhile, its Detroit rival GM has struggled to compete as high fuel prices have driven people away from its trucks and sports utility vehicles.

The American car giant has been forced to cut thousands of jobs and close factories to turn around its business.

The first-quarter results steps up the heat on GM - which sells vehicles under a range of brands, including Saab, Buick and Cadillac - to maintain its long-held status as the world's number one carmaker by global sales.

Battle

One lucrative avenue GM is pursuing is the coveted Chinese market, where it is already the market leader with sales of 876,000 cars in 2006 through its joint ventures.

The firm is investing about $1bn (£500m) annually in order to reach its target of selling an additional 500,000 cars a year in China.

The battle between Toyota and GM for the top spot will be keenly monitored until annual production figures reveal any transformation in the pecking order.

But Toyota spokesman Paul Nolasco said overtaking GM was not Toyota's first priority.

"Our goal has never been to sell the most cars in the world," Nolasco said. "We simply want to be the best in quality. After that, sales will take care of themselves."

One lingering concern for the Japanese carmaker loved by the America consumer comes from lawmakers in big manufacturing states in the US.

They assert US carmakers are being unfairly penalised by the Japanese government keeping the yen artificially low.

Any idea about Ford's position?

Ford Motor Company is the third largest - with Lincoln, Mercury, Mazda, Volvo, Jaguar and Land Rover under its wing.

I too was interested in Fords position, thanks for posting the details Jaggernaut