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GM was America's largest automaker for nearly a century. It was just dethroned by Toyota

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Toyota is the leader in U.S. auto sales for the first time, taking away a title that General Motors had held for nearly a century.

It's yet another sign that U.S. automakers have lost their dominance in their home market.

As recently as 2005, Toyota was No. 4 in U.S. sales, with GM, Ford and what was then known as DaimlerChrysler all in front, with a combined 57% of US sales between them. But in 2021, GM, Ford and Stellantis — the European automaker that owns Chrysler — had only 38% of the US market between them in the first nine months of the year. Even adding in Tesla only gets the U.S. automakers to just over 40% of sales.

Both Toyota and GM reported year-end sales Tuesday. GM posted full-year U.S. sales of 2.2 million vehicles, which left it 114,000 vehicles, or 5% behind Toyota.

GM fell slightly behind Toyota in second-quarter sales, and it was way behind in the third quarter. Toyota's fourth-quarter sales dropped by 30% compared to the last three months of 2020, but GM's sales plunged 43%, allowing Toyota to pad its lead.

A shortage of computer chips that limited production and the supply of vehicles was responsible for the plunge in sales at the end of the year. Industrywide U.S. sales are forecast to be down 24% in the quarter, according to Cox Automotive. Most automakers will report U.S. sales Tuesday, with Ford set to report its sales on Wednesday.

Whether Toyota is able to keep the U.S. sales lead in future years is uncertain, according to experts.

"I wouldn't expect Toyota to necessarily keep this lead," said Jessica Caldwell, executive director of industry insights at Edmunds. "It's not like GM is doing something magical all these years. They just have more channels to sell in and more brands."

GM suggested it expects to be back in the lead soon.

"The semiconductor shortage, among other things, created an unprecedented set of circumstances in 2021," the company said. "Even so, GM extended its lead in full-size pickups and SUVs. And 2022 begins with a gradually improving supply chain, and that should lead to growth in 2022 as we launch several new vehicles -- including EVs and redesigned pickups."

CHIP SHORTAGE

A shortage of computer chips led to slow or temporarily at many factories. That for dealerships and drove to record levels.

A continued tight supply of chips in 2022 could force both automakers, and most of the rest of the industry, to build fewer vehicles than needed to meet demand.

"The chips are still the wild card for this year," said Michelle Krebs, senior analyst with Cox Automotive.

Krebs said part of GM's sales advantage in previous years was that it sold more of its car in fleet sales to businesses, such as rental car companies, typically at less than the retail price paid by consumers. But with a limited supply of cars, have virtually disappeared this year, she said.

The horse race between automakers is something that gets attention in the industry but not much from car buyers, said Krebs.

"I can't tell you how many buyers don't even know Chevy is part of GM or Lexus is part of Toyota," she said.

Toyota took away the from GM in 2007, and for a few years the two went back-and-forth on global sales leadership with Toyota in 2012. Now the race for global sales is between .

But GM, which took the top sales title from Ford back in 1927, has been able to maintain its U.S. sales lead all the way through other tough periods. Those include 2019, when members of the United Auto Workers union shut down GM with a , and 2009, when GM was forced to — temporarily or permanently , discontinuing its weaker brands and .

The outlook for GM appears brighter than its current woes, Caldwell said. It is on an , and Toyota is with its own EV plans.

"If EVs and autonomous vehicles are the future, GM is setting themselves up quite well," she said.

Toyota, which builds 70% of the cars and trucks that it sells in the United States at five U.S. plants, issued a statement saying it is "grateful to our loyal customers for putting their safety and trust in Toyota and Lexus vehicles." It said its sales ranking has never been a focus or priority.

"The company's focus has always been — and will continue to be — on being the best brand in terms of safety and quality in customers' minds," said Toyota.

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