Toyota becomes the leader in new car sales in the US, overtaking GM

After 90 years in first place in sales, GM is losing out to Toyota, which becomes the new automaker with the most cars sold in the United States. GM says the chip shortage has affected sales levels, but hopes to regain the title again and achieve more growth this 2022.

Toyota for the first time became America's top-selling automaker, wresting the title it had held for almost a century from General Motors. This is another sign that American automakers have lost their dominance in the domestic market.

In 2005, Toyota ranked fourth in US sales, with GM, Ford and what was then known as DaimlerChrysler taking the lead with 57% of US sales. But in 2021, GM, Ford and Stellantis, the European automaker that owns Chrysler, held just 38% of the US market in the first nine months of the year. Even the addition of Tesla gives American automakers just over 40% of sales.

GM trails Toyota by 114,000 units

Both Toyota and GM reported year-end sales on Tuesday. GM reported US sales for the full year of 2.2 million vehicles, or 114,000 vehicles, or % less than Toyota.

GM lagged slightly behind Toyota in sales in the second quarter and lagged far behind in the third quarter. Toyota's fourth-quarter sales fell 30% from the last three months of 2020, but GM's sales fell 43%, allowing Toyota to expand its lead.

Chip shortage hit sales

This caused a drop in sales at the end of the year. Cox Automotive forecasts industry-wide U.S. sales to fall 24% this quarter. Most automakers will report U.S. sales on Tuesday, with Ford on Wednesday.

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

GM suggested that it hopes to return to the lead soon

“Semiconductor shortages, among other things, have created an unprecedented set of circumstances in 2021,” the company said. However, GM has increased its lead in the full-size pickup and SUV segment. And “2022 is starting off with incremental improvements in the supply chain, and this should lead to growth in 2022 as we launch several new vehicles, including electric vehicles and upgraded pickups.”

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