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Maybe it's a coincidence, but news of Toyota boosting production at Subaru's Indiana plant to the tune of 100,000 cars has surfaced just as GM announced plans to scale back its production footprint. (Or maybe it's just a clever business reporter retailing a sensational story, but let's move on anyway...) Between GM's plan to produce 1 million fewer cars per year and Toyota's planned increase (which includes 200,000 trucks at its new plant in San Antonio), Business Week says, Toyota could finally unseat GM as the world's largest carmaker in terms of production. Still, if GM continues to grow in Asia โ€” particularly in China โ€” the threat could be mitigated somewhat, but the spread between the two companies has nonetheless narrowed to around 900,000 cars per year. Oh, and then there's that new RAV4 plant in Canada, which could be building 100,000 vehicles yearly by 2008. It's gonna be tight.

Toyota Quickens Quest to Unseat GM [Business Week]

GM and Toyota Reportedly in Cooperation Talks [internal]