Toyota Claims Top Spot in American Car Sales

Toyota’s annual US sales beat GM for the first time ever. How did they manage this record, and is it sustainable?
Written by Clare Behe
Reviewed by Kathleen Flear
Toyota logo
Historically,
90% of cars sold in the United States
were also made here. But in 2008, reports showed the numbers dropping to 50%— and they have not gone up since. 
Still, GM maintained its position as one number one seller of cars sold in the US year after year. Then, shockingly, at the turn of 2022, it was announced that for the first time in automobile history that
Toyota
took that spot. 

How did this change come about?

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The two companies have been
zinging
one-liners at each other in conversations with the press since, with GM assuring the world that they will reclaim the spot back—insiting that Toyota’s successful year is nothing more than an outlier. 
Meanwhile, Toyota has reiterated confidence in their product. Only time will tell which of the two companies can hang on to a sustained first place spot, but for now, let's look at how Toyota managed to sell so many cars sales during an internationally turbulent year, and why GM simply couldn’t keep up.
Toyota has been growing in popularity in the US for some time, its rise coinciding with the drop in American-made vehicles over the past couple of decades. The Japanese company has a
reputation
for dependability and affordability, not to mention a slow depreciation rate. 
But like many industries, it was the arrival of the COVID-19 pandemic and subsequent shut -downs that turned auto sales on their head. The pandemic brought about a major shortage of semiconductor chips, an
integral
part in the function of autos and electronics, with production slowing significantly. 
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How a natural disaster prepared Toyota for production

Semiconductor chips are functional in all vehicles but hold particular importance in hybrid and electric cars because of the variety of uses that they provide.
Hybrid and EVs
account for a large percentage of Toyota’s sales in the United States, whereas GM is
behind the times
in that regard. 
Even so, one would expect the semiconductor shortage would equally gut Toyota’s production. How did the reverse happen?
It all goes back to the historically destructive 2011 tsunami in Japan. As the country struggled to recover from the wreckage, it prioritized stockpiling
certain materials
in a “hope for the best, prepare for the worst”-type mentality. And, fortunately, one of those materials was semiconductor chips. 
Therefore, as GM reeled throughout 2020 and 2021, Toyota continued to produce at a pre-pandemic rate. Towards summer’s end in 2021 Toyota’s stockpiles began to run low and production slowed significantly, but sales remained
incredibly high

Who has the edge for 2022?

It's no secret that electric vehicles are seen as the future of the automobile industry, particularly State-side. Will GM develop a competitive lineup by next year, as promised, to reclaim their crown? Or is Toyota’s established reputation preferable for financially and environmentally-preoccupied Americans? Only time will tell. 
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