Written by / Zhang Ou
Editor/ Cow Heel Shang
Design / Shi Yuchao
Source/Automotive News by David Phillips
In the first quarter of 2022, the top spot in the U.S. new car sales market was won by Toyota again.
Toyota Surpassed GM's 512846 with 514592 units and topped the U.S. automaker's highest-selling automaker.
In the auto market over the past few months, dealer inventories have been barren, oil prices have soared and new cars have few discounts, but Toyota has achieved two consecutive quarters of sales champions and become the deserved king of sales.
The Japanese automaker's full-line portfolio of economy compact sedans, mid-market crossovers and luxury SUVs currently offers 18 hybrid and fuel cell models for the U.S. market. Its brand accounts for more than half of the total sales of hybrid vehicles in the United States.
According to Brian Finkelmeyer, a research firm focused on inventory management technology, "Toyota did well during the chip crisis because it was used to operating with streamlined inventory. "That's one of the reasons they've been able to maintain stable sales."
(Drafted by AUTOMOTIVE NEWS ILLUSTRATION)
The problem of overall supply shortages
U.S. new car sales in the first quarter of 2022 fell by about 12 percent compared to the same period last year, and chip shortages remain the biggest problem. Therefore, in the face of high consumer demand, factories have no choice but to slow down.
The sales volume of traditional car companies in the first quarter showed a downward trend compared with the previous year.
Although Toyota won the championship, it fell by 14.7% compared to the same period last year. GM fell 20.1 percent, Stellantis 14 percent, Honda 23.2 percent, and Nissan 29.6 percent. Two South Korean car companies, Hyundai and Kia, may be slightly better, down only 4 percent and 5.2 percent, respectively.
Thomas King, president of data at J.D. Power, believes that March is usually the big month of sales for automakers. However, this year all automakers have only 900,000 vehicles in national inventories, which undoubtedly dampens sales.
Many automakers have mentioned chip shortages when reporting sales. Since 2021, the word "chip" has been hanging over the auto industry like a cloud.
In an effort to adjust and optimize inventories, in early March, Ford confirmed the shutdown of two of its North American plants, its Kentucky truck plant and its Ohio assembly plant; at the end of March, Honda reduced production at two plants in Japan by 10 percent; and GM also planned to close its truck plant in Fort Wayne, Indiana, for two weeks in April.
But many expect improvements this year. Dr. Mi Yujie, senior deputy general manager of TSMC's R&D department, believes that the recovery will begin in 2022 and will take 2-3 years.
Tesla, Ford, Volkswagen, Volvo, Daimler and Jaguar Land Rover will report results later in April.
Toyota has been ahead of the curve in dealing with supply chain woes. The picture shows Toyota Motor waiting for shipment at a port in Sendai, Japan
(Photo: TORU HANAI/BLOOMBERG)
GM: Three consecutive quarters of decline
GM has had three consecutive quarters of declining sales.
All of the Detroit giant's brands saw declines in the first quarter of 2022: Chevrolet down 20 percent, GMC down 7.5 percent, Buick down 58 percent, and Cadillac down 24 percent.
The time lag between production and delivery to dealers is the main reason why GM is once again lagging behind its competitors in its own home market.
Steve Carlisle, president of GM's North American business unit, said GM's plant operated "at near normal levels" in the first quarter.
As of the end of March, GM's inventory in the U.S., including vehicles being shipped to dealers, was about 274,000 units, up from about 200,000 units at the end of 2021.
While most GM sales declined year-on-year, there were a few exceptions.
Cadillac Cared, Chevrolet Tahoe and Suburban, and GMC Yukon all sold slightly more than in the first quarter of 2021, as did heavy-duty versions of the Chevrolet Silverado and Sierra pickups. GM has chosen to prioritize the production and delivery of the most profitable products.
Stan McNabb Chevrolet Dealer▼
Stellantis reported that 405221 cars were sold in the first quarter. Sales of Jeeps fell 2 percent and Sales of Ram cars fell 15 percent.
Honda's sales suffered an eighth consecutive month of decline. A total of 266418 vehicles were sold in the first quarter. Honda brand deliveries fell 27 percent in March, while Acura fell 26 percent.
Dave Gardner, executive vice president of Honda, said fluctuating parts supply issues were taking Honda on a roller coaster ride. "Honda is not out of the woods yet, but we will maximise production and help our dealers meet the needs of our customers," he said. ”
Nissan's first-quarter sales of 201081 units plunged about 30 percent from last year, with Nissan's auto division down 29 percent and Infiniti down 41 percent.
Hyundai's sales fell 21 percent in March, ending two consecutive months of growth in January and February. Kia's automotive deliveries fell by another 11 percent in March after a 2.3 percent increase in February. In the first quarter, Hyundai motor vehicles sold 159676 units and Kia motors 151197 units.
Kia Niro▼
Not only are new cars without discounts, they are even more expensive
Elaine Buckberg, GM's chief economist, said in a statement: "Normally, such a strong U.S. economy would translate into 17 million light vehicle sales. Despite the downsides of inflation and rising fuel prices, there has been some progress in improving supply chains this year, and sales are expected to increase in the second half of the year. ”
Buckberg believes that due to a strong labor market, higher car production and pent-up demand, the number of light vehicles in the industry will grow this year and exceed the 2021 level.
According to Edmunds.com data, vehicles entering the dealership are sold quickly despite tight supply.
On average, fuel cars only need to wait 20 days in the garage before they are bought, compared to 62 days last March. Demand for electric vehicles is also strong, with they only have to wait 21 days, compared to 63 days a year ago. Hybrids are sold in an average of 15 days, compared to 48 days in March 2021.
Customers are being purchased at toyota dealers in Orem, Utah
(Photo by George Frey/Bloomberg)
In this unique era, the entire market is changing.
"Shrinking inventories continue to have an impact on the new and used car markets, and consumers who can actually buy a car need to commit to unprecedented average payment levels and loan terms." Jessica Caldwell, Edmonds' insights executive director, said.
In the first quarter of 2022, the average down payment for a new car climbed to $6,026, an increase of 27% compared to the first quarter of 2021, which is also the first time that figure has exceeded $6,000. The average down payment growth for used cars was less pronounced, climbing to $3574 in the first quarter of 2022, up 7% compared to the first quarter of 2021.
Insufficient inventory of new cars has made demand for used cars still hot this quarter. K.D. Power data shows that the average transaction value in March was $9274, 81% higher than a year ago. Used car loan maturities also set a new record, climbing to 70.4 months, compared to 68.2 months in the first quarter of 2021.
This article was originally produced by Automotive Business Review
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