Toyota has taken over GM as the largest automaker in the U.S. in 2021. Toyota outnumbered GM by selling 2.332 million vehicles. From 1931 GM was one of the best-selling car companies in the U.S. until Toyota took over as the largest automaker.
How did Toyota take over GM as The Largest Automaker in the U.S.?
While the severe shortage of semiconductor chips caused factory shutdowns, Toyota received appreciation for supply chain management.
Toyota took over GM as the largest automaker despite fires at manufacturing sites or COVID lockdowns.
The impressive sales of the Camry and Corolla helped Toyota take over GM. The RAV4 remained Toyota’s top-selling vehicle, while compact SUV sales dropped 5 percent.
Nevertheless, the Corolla and Camry sales respectively rose to 5 percent and 6.6 percent.
What is the future of Toyota as it takes over GM as the largest automaker in the U.S.?
The largest non-domestic automaker increased its fourth-quarter production due to the availability of semiconductor chips. The Tacoma pickup gained sales by 5.7 percent to 252,520 units.
Toyota’s North America’s senior VP Jack Hollis said during a call on Tuesday, “Yes, we did surpass General Motors in sales. But to be clear, that is not our goal, nor do we see it as sustainable.”
After taking over GM as the largest automaker, Toyota plans to invest $3 billion in investments in the U.S. for electric vehicle development.
What is the future for GM as Toyota takes over as the largest automaker?
Toyota takes over as largest automaker after GM sits on top for nearly a century. GM expects the U.S. economic growth to boost the light-duty vehicle industry. It the sales to reach around 16 million in 2022 compared to 15 million the year before.
GM spokesman Jim Cain and Chief Executive Mary Barra both say that the company emphasizes profitability over volume.
North America GM President Steve Carlisle says they aim to increase both market share and sales by next year.
Toyota takes over GM as the largest automaker despite a semiconductor chip shortage
Toyota has dethroned GM as the largest automaker in the U.S. despite a severe lack of semiconductor chips. The semiconductor chip shortage is an ongoing crisis beginning from 2020.
The semiconductor chip demand is greater than the supply affecting over 169 industries. Various industries use the chip for video game consoles, computers, graphic cards, and cars.
While the pandemic is the primary cause of the semiconductor chip shortage, various other factors also contribute. Other causes are weather incidents such as the 2021 drought in Taiwan, fire at facilities, and the China – U.S. trade war.
Since Toyota has taken over GM as the largest automaker despite various obstacles, they have raised the bar. Nevertheless, multiple governments across the globe are attempting to fix the semiconductor chip shortage issue.
A senior analyst with Cox Automotive, Michelle Krebs, says, “The chips are still the wild card for this year.”
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