Photo: YouTube Screenshot/Toyota Media Gallery
In the motoring world, GM is America, and America is General Motors - but not anymore. Japanese giant Toyota Motor Corp. is the top-selling automaker in the U.S. The Detroit-based carmaker lost its crown to close rival Toyota for the first time since Herbert Hoover was president.
Last year, Japanese car manufacturers’ 2.3 million auto sales ranked the highest in the U.S., up 10% from 2020. This sudden shift in market position highlights the ongoing impact of the semiconductor shortage.
According to General Motors, its 43% fourth-quarter sales decline and 13% stumble for 2021 was due to the semiconductor shortage. As a result, the race for the top spot could have been a supply-chain affair, giving an upper hand to whoever could best sweet-talk chip producers for more products.
It’s not been an easy race for the auto industry in the wake of chip shortage, and more so for U.S. automakers. While General Motors sales dipped, Honda Motor Co., Toyota, and Nissan registered gains.
Toyota had the privilege of being the world’s largest automaker, and has the scale to lock in orders of scarce computer chips. Its global dominance has also allowed it to soldier on despite a worldwide pandemic. American automakers like GM, on the other hand, did not share the same luxuries and faced production delays in the third quarter due to insufficient chip supplies.
According to National Review, chip shortages leading to supply chain issues have pushed the price of the average car up by 15% to a record $45,872 in one year. These price measure fluctuations hit American automaker GM hard, with the company recording an industry-high average price of more than $50,000 per unit vehicle.
On a conference call, Jack Hollis, senior vice president of U.S. Toyota sales, told reporters that the Japanese automaker might not be number one for long. He stated that the Japanese car manufacturer outselling GM is not sustainable without elaborating.
General Motors agreed, stating that it would increase sales in 2022. Many auto companies reported their fourth-quarter U.S. sales on Tuesday. Ford is to release its figures on Wednesday.
According to General Motors, its 43% fourth-quarter sales decline and 13% stumble for 2021 was due to the semiconductor shortage. As a result, the race for the top spot could have been a supply-chain affair, giving an upper hand to whoever could best sweet-talk chip producers for more products.
It’s not been an easy race for the auto industry in the wake of chip shortage, and more so for U.S. automakers. While General Motors sales dipped, Honda Motor Co., Toyota, and Nissan registered gains.
Toyota had the privilege of being the world’s largest automaker, and has the scale to lock in orders of scarce computer chips. Its global dominance has also allowed it to soldier on despite a worldwide pandemic. American automakers like GM, on the other hand, did not share the same luxuries and faced production delays in the third quarter due to insufficient chip supplies.
According to National Review, chip shortages leading to supply chain issues have pushed the price of the average car up by 15% to a record $45,872 in one year. These price measure fluctuations hit American automaker GM hard, with the company recording an industry-high average price of more than $50,000 per unit vehicle.
On a conference call, Jack Hollis, senior vice president of U.S. Toyota sales, told reporters that the Japanese automaker might not be number one for long. He stated that the Japanese car manufacturer outselling GM is not sustainable without elaborating.
General Motors agreed, stating that it would increase sales in 2022. Many auto companies reported their fourth-quarter U.S. sales on Tuesday. Ford is to release its figures on Wednesday.
Google News