The dominance of GM, which had continued its “home turf defeat” record, was collapsed for the first time in 90 years by Japanese automobile company Toyota. The difference in the ability to respond to the shortage of semiconductors for vehicles, which has plagued the global automobile industry over the past year, has resulted in this result.
According to Reuters GM sold a total of 2,218,000 units in the U.S. market last year. It fell behind Toyota, which sold 2.332 million units. As a result, Toyota has become the first foreign automobile company to rank No. 1 in sales in the U.S. market.
GM has maintained its position without giving up its throne for 89 years since it beat its rival Ford in 1931 to become the No. 1 player in sales in the U.S. market.
Foreign media all assessed that the shortage of semiconductors for vehicles was a winning point.
GM stopped operating several factories several times throughout 2021 due to a direct hit by the supply shortage of semiconductors, and for this reason, sales in the U.S. market plunged 12.9% year-on-year. On the other hand, Toyota succeeded in minimizing the risk of semiconductor supply chain problems and increased sales by 10.4% over the same period.
Bloomberg reported that the vehicles that led Toyota’s growth last year were cars such as Corolla and Camry. In the U.S. market, sales of Corolla increased by 5% and sales of Camry increased by 6.5%, respectively.
The New York Times (NYT) analyzed, “Since the 2011 Great East Japan Earthquake, Japanese companies such as Toyota have increased their reserves of major parts in preparation for the suspension of production and supply.”
Eric Gordon, a professor of business administration at the University of Michigan, stressed, “The era of dominating the U.S. market just because it was a U.S. domestic brand is over.”
However, the prevailing view is that Toyota will not be able to establish a “dynastic” by maintaining its No. 1 position in sales for a long time. This is because GM is said to be ahead of Toyota, which focuses on hybrid cars in the rapidly growing electric vehicle market, and the infrastructure law pursued by the U.S. administration of Joe Biden includes support measures for U.S. brands.
GM, which lost its throne last year, said it focused on maximizing profits and confidently said, “The semiconductor supply shortage is being resolved, and if this problem is resolved, sales will improve,” adding, “If I were Toyota, I would not hastily declare ‘we are the first place’.”
