Toyota is coming for GM’s crown. GM is betting on bigger vehicles.

General Motors and Toyota are taking increasingly different approaches to the U.S. auto market, putting Toyota within striking distance of GM’s nearly century-long position as America’s top-selling automaker, The Wall Street Journal reports. 

GM has deliberately prioritized profit margins over sales volume, moving away from traditional sedans and focusing on highly profitable trucks, SUVs and luxury vehicles while cutting money-losing businesses. This strategy has strengthened GM’s finances, with near-record operating profits and its stock trading at record highs, but its factory utilization has fallen to 73%. 

Toyota, meanwhile, is expanding its lineup, benefiting from strong hybrid demand and rising sales of models such as the Corolla and Camry. It is also investing heavily in U.S. manufacturing, including a $1.5 billion battery order that will restart a Michigan factory originally planned for GM’s EV program. Toyota’s factory utilization is about 92%, significantly higher than GM’s. 

The companies also appeal to different consumers. GM remains particularly strong among truck buyers, while Toyota attracts consumers seeking reliability, efficiency and affordable vehicles. 

GM’s strategy reflects lessons from its 2009 bankruptcy, when aggressive discounting, too many brands and a focus on market share weakened profitability. CEO Mary Barra has instead emphasized financial discipline, eliminating money-losing ventures and improving margins. The strategy has made GM financially stronger, but Toyota’s aggressive growth is testing whether GM can remain America’s sales leader while prioritizing profitability.

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