Toyota surpasses GM to take U.S. sales crown for first time
Baku, January 5, AZERTAC
Toyota Motor Corp. grabbed the U.S. sales crown from General Motors Co., swiping an honor that the Detroit automaker has held since Herbert Hoover was president, according to Japan Times.
If GM’s explanation is to be believed — that its 43% fourth-quarter sales decline and 13% tumble for the year stemmed from a semiconductor shortage — then last year’s sales race was really a supply-chain pageant. Whoever could best cajole stretched chip producers for more product came out a winner.
Navigating the squeeze has been a nightmare for the auto industry, and especially for U.S. carmakers. While GM’s sales fell for the year, Toyota, Honda Motor Co. and Nissan Motor Co. posted gains.
Toyota may not be No. 1 — the spot GM had occupied beginning in 1931 — for long.
To retake its leadership position, GM will have to return to something closer to the 2.5 million vehicles the company delivered in 2020. Before the COVID-19 pandemic and semiconductor shortage hit, GM sold about 2.9 million vehicles in 2019.
Market share is vital to GM’s long-range target of doubling revenue to $280 billion. That will require keeping buyers of gasoline-burning cars and trucks and stealing new ones who want electric vehicles.
And as production recovers, GM may not want every sale it can get. Domestic automakers typically keep 80 days worth of vehicles on dealer lots, while Japanese automakers keep as few as 50 days worth available. Thinner inventory allows for better pricing and fatter profits.
Consumers today are paying record prices, since automakers don’t need rebates and dealers don’t need to bargain heavily.
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