Toyota challenges GM for U.S. sales leadership

Toyota is approaching General Motors (GM) in the race for the position of top-selling automaker in the United States, a title GM has held for nearly a century. While both companies have sold approximately 1.5 million vehicles this year, the gap between them has narrowed to just over 100,000 units.

The two companies are pursuing divergent business strategies. Under CEO Mary Barra, GM has prioritized profitability over sales volume. By phasing out low-margin models like traditional sedans and focusing on high-margin vehicles such as large SUVs and pickup trucks like the Chevrolet Silverado, GM has achieved near-record operating profits and significant stock growth. However, this focus on margins has resulted in lower factory utilization, currently at 73%.

In contrast, Toyota is expanding its lineup and benefiting from high demand for hybrid models and reliable vehicles like the Corolla and Camry. Toyota maintains a much higher factory utilization rate of approximately 92% and is investing heavily in U.S. manufacturing, including a $1.5 billion battery order to restart a factory in Michigan.