General Motors (GM) has been able to successfully meet strong demand for passenger cars and trucks, regaining the top position in U.S. car sales from rival Toyota Motor Crop.
GM shares rose 2.7% to $34.75. Following his 2.5% increase in sales to 2,274,088 in 2022, the business outperformed Toyota’s 2,108,458. Production at many automakers was slowing due to inventory constraints due to rising material costs and continued chip shortages. This will keep the prices of cars and trucks going up.
In the United States, 1.26 million new vehicles were sold in December, representing an annual sales rate of 13.31 million. Analysts fear that price hikes by automakers to combat inflationary pressures and rising interest rates will have a negative impact on new car sales in 2023.
According to Toyota executive David Christ, “affordability is a very real issue.” The company expects strong demand to continue this year and beyond. Both automakers should start offering incentives to their customers, a trend that was put on hold during the pandemic.
However, Toyota executives say there have been some encouraging developments, with inventory build-up slowing but steady. We expect inventory levels to continue to increase in the first quarter.”
However, other manufacturers such as Honda, Mazda, Hyundai and Kia have also reported lower sales.
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