Business Essentials for Professionals


Toyota Overtakes GM As The Top Auto Seller In US, A Spot Held By GM For Almost A Century

Toyota Overtakes GM As The Top Auto Seller In US, A Spot Held By GM For Almost A Century
The United States based auto giant General Motors Co has been dethroned as the largest auto seller in the country by Japanese automaker Toyota Motor Corp in 2021 as Toyota sold more vehicles in the year. This is the first time that such a thing has happened since the Detroit automaker has become the second highest selling auto company in the country for a full year since 1931.
For the entire of 2021, 2.332 million vehicles were sold by Toyota in the United States while 2.218 million of its vehicles were sold by General Motors, the two automakers said.
For the entire 2021, there was a 13 per cent drop in the sales of GM in the US while it was down by 63% in the fourth quarter of last year. In contrast, Toyota reported a 10- per cent rise in sales for 2021. It was in 2010 that GM had reported lower sales at 2.202 million.
For the entire of the previous year of 2020, the total sale of GM was 2.55 million vehicles while Toyota had sold only 2.11 million units. Another US auto giant Ford had sold 2.04 million vehicles in the same year. 
2021 was a year when auto makers were severely impacted by the global semiconductor shortage used in vehicles which forced most auto makers to concentrate on manufacturing their most profitable models only. 
GM said on Tuesday that it anticipates the United States' overall light-duty vehicle sector sales to increase from about 15 million in 2021 to about 16 million in 2022 as a result of the economic expansion happening in the country.
According to data from industry publication Automotive News, GM has been the leading seller of vehicles in the United States since 1931, when it surpassed Ford.
Toyota isn't bragging about its achievement. The manufacturer is "grateful" for its devoted consumers, according to Senior Vice President Jack Hollis, but "being No. 1 is never a goal or priority."
He stated that the Japanese manufacturer does not believe it can maintain its sales lead in the United States and has no plans to advertise the achievement in 2021.
Analysts commended Toyota with surviving the semiconductor scarcity better than other automakers.
According to GM spokesperson Jim Cain, the Detroit automaker had a very successful sales year in full-size SUVs and pickup trucks in the United States because it has focused on profitability, and sales would grow as semiconductor supply improves.
"I wouldn't rush out if I were (Toyota), and get a 'We're No. 1' tattoo," he said.
Under Mary Barra's leadership, GM has prioritized profitability over volume, exiting money-losing countries like Europe and Russia.
According to Wards Intelligence, total industry sales in 2021 were slightly under 15 million vehicles, with the annual sales rate in December coming in at 12.44 million. The full-year figure was much lower than the five-year average of 17.3 million between 2015 and 2019.
According to IHS Markit, sales in the United States are likely to reach approximately 15.5 million in 2022. Toyota expects industry sales to increase to 16.5 million this year, with demand expected to rise much higher if manufacturing can be increased further, with its own sales exceeding 2.4 million.
"If you would have asked me to predict how the year was going to go at the beginning of (last) January, I would have gotten it all wrong because this whole microchip shortage just came out of left field and it wreaked a lot of havoc," Hyundai Motor America sales chief Randy Parker said in an interview. "But at the same time, it sharpened our skill set."
"I'm very bullish on 2022," he added. Hyundai's U.S. sales last year rose 19% to more than 738,000 vehicles, including a record number on the retail side.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc