Answer:

In the year 2008, Toyota's sales surpassed General Motors, making Toyota the number one automaker in the world. This significant milestone marked a turning point in the global automotive industry.

Background:

- Toyota Motor Corporation, a Japanese multinational automotive manufacturer, has been steadily growing in the global market since its establishment in 1937.
- General Motors (GM), an American multinational corporation, had long held the title of the world's largest automaker.

Reasons for Toyota's Success:
1. Quality and Reliability: Toyota built a reputation for producing high-quality and reliable vehicles. Their commitment to continuous improvement, known as the Toyota Production System, allowed them to streamline processes and enhance efficiency. This focus on quality resonated with consumers worldwide.
2. Expansion into Emerging Markets: Toyota strategically expanded its operations into emerging markets such as China, India, and Brazil. These countries offered significant growth opportunities, and Toyota capitalized on their increasing demand for automobiles.
3. Environmental Awareness: Toyota was at the forefront of the hybrid electric vehicle market with the introduction of the Toyota Prius in 1997. Their commitment to environmental sustainability appealed to consumers who were increasingly concerned about climate change and fuel efficiency.
4. Innovation and Technology: Toyota continuously invested in research and development to stay ahead of the competition. They introduced advanced technologies in their vehicles, such as advanced safety features, autonomous driving capabilities, and connectivity options.

Factors Contributing to General Motors' Decline:
1. Financial Crisis: In 2008, the global financial crisis hit the automotive industry hard. General Motors faced significant financial challenges and eventually filed for bankruptcy. This had a negative impact on their sales and market position.
2. Competition: General Motors faced tough competition from both domestic and foreign automakers. Their inability to adapt quickly to changing consumer preferences and market trends hindered their growth.
3. Product Recalls: General Motors faced several high-profile recalls, including the ignition switch recall in 2014. These recalls damaged their reputation and eroded consumer trust in their vehicles.

Conclusion:
In 2008, Toyota's sales surpassed General Motors, making them the number one automaker in the world. Toyota's focus on quality, expansion into emerging markets, environmental awareness, and innovation played key roles in their success. On the other hand, General Motors faced financial challenges, tough competition, and product recalls, which contributed to their decline. This shift in market leadership marked a significant milestone in the global automotive industry.