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GM Sells More Cars Than Toyota In The United States In Q2 Despite Lingering Inventory Shortages


03/07/2022


GM Sells More Cars Than Toyota In The United States In Q2 Despite Lingering Inventory Shortages
General Motors Co outpaced Toyota Motor Corp in sale of cars for the second quarter in the United States, according to data released on Friday, despite ongoing semiconductor constraints and supply chain shocks that have limited the capability of auto manufacturers to meet pent-up demand.
 
GM, which lost its sales lead in the United States to Toyota for the first time since 1931, said it sold 582,401 vehicles in the three months to June, a 15% decrease from the previous year.
 
Toyota, one of the worst-affected automakers this year due to supply chain disruptions and China's COVID-19 lockdowns, sold 531,105 vehicles, a 22 per cent decrease.
 
The auto industry in the United States is straining to meet pent-up consumer demand for new vehicles.
 
This was obvious again on Friday, when GM announced that roughly 100,000 vehicles were waiting for new parts, forcing them to provide a dismal second-quarter earnings prediction.
 
"Second-quarter vehicle wholesale volumes were impacted by the ongoing semiconductor supply shortage and other supply chain disruptions mostly in June," GM said.
 
The Detroit carmaker, on the other hand, maintained its full-year profit forecast since it expects to sell those vehicles to dealers before the end of the year.
 
According to Refinitiv data, the business estimates second-quarter net income of $1.6 billion to $1.9 billion, which is lower than analysts' projections of $2.56 billion.
 
In the first quarter, GM sold nearly 7,300 electric vehicles, including the GMC Hummer pickup truck, whose manufacturing will progressively increase in the second half.
 
According to Cox Automotive, the business is likely to sell the most new vehicles in the quarter as industry-wide disruptions squeeze inventory at other big automakers.
 
Hyundai Motor Co. of South Korea announced quarterly sales of 184,191 automobiles, a 23 per cent decrease.
 
According to Cox Automotive, Ford Motor Co, which reports on Tuesday, is likely to record higher quarterly sales since it has controlled its inventories better than most companies and is also recovering from last year's troubles.
 
According to Cox, Tesla Inc will be the only large brand to gain sales in the first half of the year.
 
According to Wards Intelligence, new-vehicle sales in the United States totaled 1.13 million units in June, for an annual rate of 13 million.
 
Although demand remains solid at the moment, industry watchers are concerned about the possible impact of multi-decade high inflation and rising gas prices on the auto sector.
 
At the moment, a bigger hurdle to expanding auto sales appears to be industry-wide shortages of cars and trucks, which has caused experts to lower their full-year sales projections.
 
(Source:www.economictimes.com)


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