General Motors has retaken the title from Toyota as America's top auto maker in 2022 after forecasting a 2.5% increase in its sales. Shares of the company also rose 2.7% in midday trading on Wednesday.
General Motors Co snatched the top spot in US auto sales from rival Toyota Motor Corp in 2022 as it was better able to meet strong demand for cars and trucks despite industry-wide supply disruptions.
GM shares rose 2.7% to $34.75 in midday trading on Wednesday, with the company forecasting a 2.5% increase in 2022 sales to 2,274,088 vehicles, in a race seen higher than Toyota's 2,108,458 units.
Inventory shortages resulting from rising material costs and persistent chip shortages had constrained production for many automakers, keeping car and truck prices high. Asian brands were the most affected.
"Toyota is still the tightest when it comes to inventory," said Charlie Chesebrough, senior economist at Cox Automotive.
The Japanese automaker cut its full-year production target in November. Wednesday's data showed sales of SUVs, a key segment, to fall 8.6% in 2022.
However, Toyota executives said some positive signs were emerging, and that the rate of inventory buildup was slow but steady.
"We are optimistic that our inventory levels will continue to improve through the first quarter and the rest of the year," said Andrew Gillell, senior vice president of automotive operations at Toyota.
Other brands such as Hyundai Motor America, Kia Motors America, Mazda North American operations and American Honda reported declining sales on Wednesday.
US new vehicle sales ended December at 1.26 million units, up from an annual sales rate of 13.31 million, according to data from Wards Intelligence.
Analysts worry that price hikes by automakers to blunt inflationary pressure and rising interest rates will impact sales of new vehicles in 2023.
Toyota executive David Crist said affordability is a "very real issue". Nonetheless, the company expects demand to remain strong this year.
Automotive marketplace TrueCar said automakers need to start incentivizing buyers, a trend that stalled during the pandemic.
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