Yahoo Finance’s Pras Subramanian joins the Live show to discuss GM overtaking Toyota as the top automaker in the U.S., as well as the road ahead for the auto industry following a challenging 2022.

Video Transcript

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SEANA SMITH: Auto sales numbers are out. And GM has reclaimed its title as a top seller in the US. Sales for 2022 totaling 2.27 million. That's up 2 and 1/2 percent from what we saw a year ago and pushing shares higher today. Look at that, the stock closing up just about 2 and 1/2 percent.

And Pras Subramanian here with more on this. And Pras, I guess, good news for GM, but overall clearly a challenging year for the auto industry?

PRAS SUBRMANIAN: Yeah, for sure. GM, good news there. They're number one overall America, number one in total truck sales, a number of things like that, up 2.5% last year sales-wise, up 41% in Q4. So sort of reflecting that they really had an improvement compared to last year with all the chip shortages and things like that.

So Toyota there, their rival, you see there, 2.1, so barely missing out, but down 9.6%. They were really hit this year with those parts shortages, chip shortages. They've cut their outlook a couple of times last year, so not a good year for them. But still, 2.1 million nothing to sneeze at there.

Looking at it, GM actually sees that their ICE and gas-powered businesses actually will see potential sales of-- across the industry of $15 million to-- from $14.1 million last year. So they see the actual gas business growing overall for the industry. And then EVs of course, they upped their Bolt production to 70,000 per year. They have three new EVs come out next year. And their Factory Zero all-EV plant opens mid-next year too. So a lot going on for GM as well.

DAVE BRIGGS: Just remarkable, that split though, in year over year between GM and Toyota, wow. All right, broader expectations across the industry as the '22 numbers roll in, what are you thinking?

PRAS SUBRMANIAN: Yeah, as we get more and more these numbers-- Ford tomorrow-- then the industry will put together their sort of projection for what 2022 was. So we're looking at "Edmunds" here, looking at a number of around what 13.9-- sorry, Cox Auto, 13.9 million for 2022. That's down 8% from last year, down 20% from peak levels in like 2015-2016.

So we're not going to see these days before of 17 million units sold in a year. Those days are over. Automakers are sort of seeing the numbers and higher prices, price inflation, higher rates. We're never going to see those days, at least for a long time. And right now, it's more about can you sell cars at a decent margin, make money, and not sell as much?

DAVE BRIGGS: Yeah, auto dealers really liked that COVID dynamic, right? They didn't have a lot of inventory, but the prices were sky high, and they didn't have to have a lot of employees. It all worked out well for them. Pras, good to see you. Thank you.