The car maker from Japan, the country's largest, suffered a drop in August output, but the pride of Toyota City remains primed to continue its automotive leadership worldwide. Global output from Toyota (TM) fell around 9% year over year, but conditions economically are more stable and the additions of government programs, such as the US Cash for Clunkers and Japan's subsidy program, are helping efficient automakers move more units.

In fact, Toyota has reaped the biggest benefit of the majors from such programs and has raised its 2009 calendar year production run. The rise of 8% means the manufacture of 6.45Million vehicles total for this year. It was widely reported that Toyota owned the largest percentage of new vehicle sales under the Cash for Clunkers program in the United States, with the brand owning 3 of the top 5 new car spots, a testament to the message of Toyota as a fuel-efficient, safe and reliable car maker. Moreover, in Japan, Toyota enjoyed a 9% sales rise in August due to the Japanese subsidy program, that similar to the US, offered nearly $3000 towards the purchase of a fuel-efficient vehicle.

Toyota has rallied from lows in the mid 50s with the market since March and had hit a new high in the mid-high 80s as recently as a month ago, however, with the stock sliding below the $80 mark, down 2% Tuesday, it's time to look at Toyota again as the stable play in the automotive sector and the one with the best chance for production growth in its near future as the global economy recovers in 2010.

Disclosure: Author does not own TM