The global semiconductor shortage and other supply chain disruptions that limited production reduced General Motors’ US sales in the first quarter by 20.1% from a year ago. That allowed rival Toyota Motors to once again take the top spot away from the long-time sales leader – Toyota reported sales of 514,492 vehicles, a 14.7% drop from 2021, but which is better than GM sales by a few thousand cars.
Steve Carlisle, executive vice president and president of GM North America, indicated the company’s factories operated at “close to normal” levels in the quarter as supplies of chips improved. He added although supply chain issues are “not fully behind us,” the carmaker expects to continue exceeding 2021 production levels, especially in the second half of the year.
Carlisle explained GM believes that the increased manufacturing should offset sales headwinds created by rising inflation and fuel prices.
Dealing with Market Dynamics
Toyota was more successful in keeping up production with the chip shortage. Jack Hollis, senior vice president of automotive operations at Toyota Motors North America, noted the carmaker was still working through “ever-changing market dynamics.”