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Highlights from Zacks analyst blog: Toyota, General Motors, Honda and Nissan

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Chicago, IL – January 7, 2022 – announces the list of stocks featured on the Analysts Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Toyota TM, General Motors GM, Honda HMC, and Nissan NSANY.

Here are highlights from Thursday’s analyst blog:

Japan’s Big 3 Automakers See U.S. Sales Increase in 2021

U.S. vehicle sales data for 2021 is available, and at a historic turning point, Japan’s No.1 automaker Toyota dethroned the American automobile giant General Motors as the country’s best-selling automaker. Toyota sold 2,332,262 vehicles in the United States in 2021 compared to 2,218,228 units for General Motors. This is indeed a remarkable achievement for Toyota, as it marks the first time that a foreign automaker has overtaken its Detroit counterpart in US auto sales for an entire calendar year in the United States. 120 years of industry history.

How did TM manage to overtake GM?

Quoting Cox Automotive executive analyst Michelle Krebs, “Toyota’s success comes from good management of tight inventory all year round. It recorded strong sales under its Toyota brand as well as its luxury brand, Lexus. She added, “Toyota stockpiled computer chips, which helped it avoid some of the production pitfalls that plagued the Detroit Three at the start of the chip shortage.”

Most of the automotive bigwigs have been hit hard by the semiconductor shortage. This forced them to shut down production lines and made them scramble to get enough chips for building vehicles.

It was a tough selling year for General Motors due to the chip shortage. But not all automakers have suffered in the same way. For example, Toyota has benefited from building up a larger stock of chips. Toyota learned its lesson in 2011 when the Fukushima earthquake and tsunami halted production of several key components. Since then, as part of an overhaul of its business continuity plan, Toyota has set aside larger parts inventories.

So while most of the US auto giants, including General Motors, cut production due to a chip deficit, Toyota was able to hold out longer than its peers until it finally had to announce a reduction of manufacturing plants in fall 2021.

Will TM keep his crown in 2022?

While Toyota has been credited with handling the chip crisis better than many other automakers, it doesn’t take its current top spot in America too seriously. In fact, Toyota North America senior vice president Jack Hollis has instead downplayed Toyota’s success as the top-selling automaker in the United States in 2021.

Hollis said: “The automaker is grateful to its loyal customers, but being # 1 is never a priority or a priority. Plans to use the 2021 achievement in any type of advertising.”

Meanwhile, General Motors is quite optimistic about vehicle sales in 2022. GM North America President Steve Carlisle said, “In 2022, we plan to capitalize on the strength of the economy and the market. ‘Improved semiconductor supplies expected to increase our sales and market share.

Overall, while Toyota has been better at weathering supply shortage issues, the company doesn’t expect its new sales title to be permanent. Conversely, General Motors, although the clear leader in sales in its territory since the Great Depression, has experienced a decline in sales over a full year; but seems rather confident to bounce back in 2022.

U.S. sales of TM, HMC and NSANY in 2021

Japan’s Big Three Automobile Manufacturers – Toyota, Honda and Nissan – saw year-over-year U.S. sales growth for 2021.

Toyota reported 2021 US sales of 2,332,262 vehicles, up 10.4% year-over-year. The sales of its namesake division and Lexus increased by 10.3% and 10.7% respectively. Honda’s overall US sales for 2021 totaled 1,466,630 units, up 8.9% year-over-year. Honda brand sales edged up 8.2% and Acura sales increased 14.9%. Nissan sales in the United States increased 12.1% year-over-year for 2021 to 919,086 units.

Electricity sales jump, electrification is making great strides

Sales of Toyota’s electrified vehicles – hybrids, plug-ins and fuel cells – soared 73.2% to 583,697 units for 2021, representing a quarter of total volume. TM has earmarked more than $ 13.5 billion for investments in the development and production of electric vehicle batteries through 2030, which includes a $ 3.4 billion expenditure on battery technology in the United States. United.

To meet the growing demand for clean energy vehicles in the United States, Toyota predicts that electric vehicles will account for nearly 70% of sales in the United States by 2030, up from nearly 25% today. The company plans to sell up to 1.8 million electrified vehicles in the United States by 2030, including zero-emission models.

Honda’s electrified vehicle sales jumped 65.2% year-over-year to 107,060 units, setting a new annual record. In an effort to keep up with the global electric vehicle race, Honda plans to invest $ 46 billion in research and development initiatives, including electrification, over the next six years. It aims for electric vehicles to represent 40% of sales in North America by the end of the decade. In North America, Honda will work with General Motors to develop two full-size EV models.

The Honda Prologue SUV will be North America’s first battery-powered electric vehicle. The company will unveil an all-electric Acura SUV in 2024.

Currently, Nissan has only one electric vehicle offering on the market: the Nissan Leaf hatchback. Sales of the same increased 48.9% year over year to 14,239 units. NSANY plans to invest approximately $ 17.6 billion over the next five years to accelerate the electrification of its product line. It intends to launch 23 new electrified models by the end of the decade, 15 of which would be fully electric.

The auto giant is targeting a 50% electrification mix for the Nissan and Infiniti brands by 2030. Nissan expects electric vehicles to account for nearly 70% of US sales by 2040.

While TM and NSANY currently sport a Zacks Rank # 1 (strong buy), Honda wears a Zacks Rank # 3 (Hold). You can see The full list of today’s Zacks # 1 Rank stocks here.

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