Of the car companies that sell autos in the US, four have market shares above 10%. They are led by GM (NYSE: GM) at 17%, Toyota (NYSE: TM) at 15%, Ford (NYSE: F) at 13%, and Hyundai at 10%. GM and Ford are based in the US. Toyota is based in Japan, Hyundai is based in South Korea.
Ford is concise the No. 2 car in America because of the two largest domestic companies, it ranks second. That ranking is misleading.
One major difference between the two companies is that Ford’s US sales has its foundation in its F-150 full sized pick up. It has been the top selling vehicle in America for well over four decades. The F-Series, which includes several larger pick up models, is over a third of Ford’s US sales. Ford has exited the car business in the US. SUVs and trucks are essentially all of its sales.
Toyota has picked a different direction. Its top selling cars are the relatively small and inexpensive models led by crossovers and sedans which include the RAV4, Camry, and Corolla. It does have a pickup that sells moderately well. It is the Tacoma.
There is no single reason that Toyota has done better than Ford. Toyota’s cars routinely get high grades for quality. Ford’s recall figures are tremendously high. Ford’s luxury brand, Lincoln, sells poorly. Toyota’s luxury brand, Lexus, is often the best selling luxury brand in the US, ahead of Mercedes and BMW.
Toyota has made its best on green cars primarily on hybrids. Ford’s route was primarily in the direction of EVs. Ford has lost billions of dollars based on that decision. It has now turned to hybrids as a more successful, and portable green path.
In short, Toyota’s position is based on better cars and better strategic decisions.
Credit Card Companies Are Doing Something Nuts (Sponsor)
We’ve been writing about ways to make, save, and invest money for over 20 years. But some of the cash back credit card rewards today still make our jaws drop. There are $200 cash bonuses, 3% back on gas and groceries, $0 fees, and even some 5% rewards out there right now. For the average American that could mean hundreds, even thousands of dollars on rewards a year.
Don’t miss out on rewards this good, there is no saying how long they’ll last. Click here to see our top picks.
The post Toyota Tops Ford To Be America’s No.2 Car Company appeared first on 24/7 Wall St..
