GM in the driver’s seat while Toyota stumbles on a microchip shortage

GM in the driver’s seat while Toyota stumbles on a microchip shortage

GM, which lost its title as US car sales leader last year for the first time since 1931 to Toyota, is also expected to sell the newest cars in a quarter of any industry. Big car manufacturers, according to Cox Automotive.

Car manufacturers are expected to announce sales of new US cars for three months until June on Friday and Tuesday.

The U.S. automotive industry is plagued by global shortage of semiconductors, staff shortages and other supply constraints, and is failing to meet consumer demand.

Toyota has been one of the worst affected car manufacturers this year as the shortage of chip and shutdown of COVID-19 in China – which has also affected other car manufacturers – has forced it to reduce production several times. .

GM, on the other hand, seems to hold up better. At the beginning of the month, it reaffirmed its goal of increasing car production by 25 to 30% by 2022 compared to 2021.

Both car manufacturers – including Stellantis NV, Hyundai Motor Co., Honda Motor Co. and Nissan Motor Co. Ltd – are expected to report lower quarterly sales, with the exception of Ford, based on data from Cox and TrueCar.

Cox officials said Ford, which reports June sales on Tuesday, has managed better than most and is also recovering from last year’s conflict.

Tesla Inc will be the only major brand to increase sales in the first half of the year, according to Cox.

Industry monitors are concerned about the potential effects of decades of inflation and rising petrol prices in the automotive industry, though they point out that demand is still strong at present, an unusual situation.

“I fear the buyer is nearing the end of his life and we believe he is in a recession and we are doing it,” Cox chief economist Jonathan Smoke said earlier this week.

A major obstacle to increasing car sales today still appears to be a shortage of cars and trucks across the industry, which has led analysts to reduce their year-round sales forecasts.

“The recovery in car manufacturing in 2022 seems unlikely at the moment,” said Jessica Caldwell, executive director of automotive industry consultant Edmunds.