Toyota beats GM in US auto sales

Toyota is the leader in US auto sales for the first time, taking away a title that General Motors has held for nearly a century.

It’s yet another sign that American automakers have lost dominance in their home market.

As of 2005, Toyota was fourth in US sales, with GM, Ford and what was then known as DaimlerChrysler at the top, with 57% of US sales. But in 2021, GM, Ford and Stellantis – the European automaker that owns Chrysler – had just 38% of the US market between them in the first nine months of the year. Even adding Tesla, American automakers reach just over 40% of sales.

Both Toyota and GM released year-end sales on Tuesday. GM reported annual sales of 2.2 million vehicles in the US, leaving it 114,000 vehicles, or 5% behind Toyota (TM).

GM lagged slightly behind Toyota in second-quarter sales and far behind in the third. Toyota’s fourth-quarter sales were down 30% compared to the last three months of 2020, but GM’s sales were down 43%, allowing Toyota to increase its lead.

The shortage of computer chips that limited the production and supply of vehicles was responsible for the drop in sales at the end of the year. US industry sales are expected to fall 24% in the quarter, according to Cox Automotive. Most automakers will report sales in the United States on Tuesday (4), unlike Ford, which will report sales on Wednesday (5).

Whether Toyota will be able to maintain the US sales lead in the coming years is uncertain, according to experts.

“I wouldn’t necessarily expect Toyota to maintain that lead,” said Jessica Caldwell, executive director of industry insights at Edmunds. “It’s not like GM has been doing something magical all these years. They just have more channels to sell and more brands.”

GM has suggested it hopes to be back in the lead soon.

“The shortage of semiconductors, among other things, created an unprecedented set of circumstances in 2021,” the company said. “Even so, GM extended its leadership in full-size pickup trucks and SUVs. And 2022 starts with a gradually improving supply chain, and that should lead to growth in 2022 as we launch several new vehicles – including redesigned EVs and pickup trucks.”

chip shortage

The shortage of computer chips has led the two automakers to slow down or temporarily stop production at many factories. This cut dealer inventory and drove car prices to record levels.

A continued, restricted supply of chips in 2022 could force both automakers, and most of the rest of the industry, to build fewer vehicles than necessary to meet demand. “Chips are still the wildcard for this year,” said Michelle Krebs, senior analyst at Cox Automotive.

Krebs said part of GM’s sales advantage in previous years was that it sold more of its cars in fleet sales to companies such as car rental companies, typically for less than the retail price paid by consumers. But with a limited supply of cars, fleet sales have virtually disappeared this year, she said.

horse racing

Horse racing among automakers is something that gets industry attention, but not much of car buyers, Krebs said.

“I can’t tell you how many buyers don’t even know the Chevy is part of GM or the Lexus is part of Toyota,” she said.

Toyota took the global lead in car sales from GM in 2007, and for a few years the two have gone back and forth in the global sales lead with Toyota overtaking GM most recently in 2012. Now the race for global sales is between Toyota and Volkswagen.

But GM, which took the best-selling title from Ford in 1927, was able to maintain its US sales lead during other difficult times. This includes 2019, when members of the United Auto Workers union shut GM down with a nearly six-week strike, and 2009, when GM was forced to file for bankruptcy – temporarily or permanently closing many factories in the United States, discontinuing its weaker brands and losing more than 1,000 dealerships.

The prospects for GM look better than they do now, Caldwell said. It is betting big on an all-electric future, and Toyota is trying to catch up with its own EV plans.

“If EVs and autonomous vehicles are the future, GM is preparing very well,” she said.

Toyota, which makes 70 percent of the cars and trucks it sells in the United States at five US plants, has issued a statement saying it is “thankful to our loyal customers for putting their safety and confidence in Toyota and Lexus vehicles.” She said her sales ranking was never a focus or priority.

“The company’s focus has always been – and will continue to be – on being the best brand in terms of safety and quality in customers’ minds,” said Toyota.

This content was originally created in English.

original version

Reference: CNN Brasil

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