Monday, January 17, 2022
News General Motors is About to Lose its 94 Year Dominance of the...

General Motors is About to Lose its 94 Year Dominance of the US Market to Toyota

Toyota will overtake General Motors on the US market due to the semiconductor shortage

  • Toyota has sold more vehicles in the US for the first 3 quarters of 2021 and the last quarter is expected to be similar

  • General Motors was more affected by the semiconductor shortage

  • GM could regain the leadership due to its strong EV plan

General Motors is about to get dethroned in terms of sales in the United States for the first time since 1927 due to the semiconductor shortage.

The many supply chain issues brought by the pandemic have affected every automaker in 2021, but General Motors seems to have been hit harder than some, with a production that was much lower than it would have been without constraints.

Toyota, on the other hand, seems to have been one of the companies that were able to face shortages without too many issues and despite some slow downs, its overall production took less of a hit than GM’s.

Thus, Toyota sold more vehicles in the United States than General Motors in the first 3 quarters of 2021 and the last quarter is expected to further the Japanese automaker’s lead, since even if Toyota’s sales decreased by about 31%, GM’s sales were about 46% lower.

2021 Toyota RAV4 LE FWD | Photo: Olivier Delorme

This will be the first time in 94 years that General Motors is not the best-selling automaker in the US, and it will also be the first time a foreign automaker will hold this title.

Despite being Japanese, however, Toyota produces 70% of the vehicles it sells in the United Stated in 5 American factories.

This newly found lead for Toyota might be short however, since General Motors has a strong electrification plan that calls for many new electric models to arrive on the market in the next couple of years, while Toyota is still moving very slowly towards electric transportation.

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