The domestic auto sector is making a comeback. There are several companies poised for significant advance during the coming year. However, Toyota (TM) isn’t one of them. Its market multiple of 40.66 just isn’t backed up by the numbers. Plus, Toyota is facing growing competition from its American counterparts. Edmunds.com expects that light auto sales for December in the U.S. will be up 24% from November, with General Motors (GM) posting a huge 31% gain (for December). GM’s total market share for 2011 is around 19%, Ford (F) claims about 16%, totaling over 35% of the U.S. market. U.S. based automakers are expected to reclaim 2% of total market share from foreign based competition. Toyota barely makes 9% of the U.S. market, also per Edmunds.com, and is losing ground. Domestic producers also posted double digit sales gains. Toyota despite being up for November has lost 7.5% on the year.

Toyota has faced many challenges recently. The tsunami in Japan, massive flooding in Thailand and a global recall to name a few. Beginning in 2009 and carrying into 2010 Toyota recalled over 9 million units, costing the company over $5 billion. A strongly trading yen is also hampering Toyota’s bottom line. Never mind that disaster can be overcome, if the yen remains strong then Toyota will be hard pressed to increase profit margins. Toyota has announced it is planning to bounce back in 2012. Toyota is estimating it will solve its production problems and increase global sales next year by 20%.To continue reading, click here.