Toyota getting educated, changing Tundra's model mix
Toyota's foray into the world of full-sized pickups has taught the company several lessons –- the hard way. According to Automotive News, the automaker is trying to adjust the production of certain trim levels to meet market demand; increasing output on some, while reducing others.
The CrewMax pickup, sporting the range-topping 5.7-liter V8, is Toyota's biggest seller, to the point where supply isn't keeping up with demand. What was originally thought to comprise between 50- and 60-percent of sales is, in actuality, closer to 70- to 80-percent. As such, Toyota is in the process of cutting back production of the standard-cab model, equipped with either the V6 or 4.7-liter V8, since sales of the entry-level truck aren't meeting expectations.
One of the other factors differentiating the Tundra from its domestic competitors is the standard equipment, including safety features, that the Big 2.5 considers optional extras. Naturally, this inclusion of more toys increases the price of the Tundra, possibly scaring off potential customers.
Other lessons learned by Toyota execs include a higher rate of trade-ins (up 20-percent), which is populating dealer lots with an excess of used cars, plus the fact that online inquiries about the Tundra are matching the numbers generated by the Camry –- a sign that Toyota's message is getting out. Which is great for Toyota, as long as they have the stock to meet demand.
[Source: Automotive News – Sub. Req.]
Reader Comments (Page 1 of 3)
roadside observer 9:07AM (4/16/2007)
It's no surprise that the early adopters are buying fully-loaded trucks. The top-of-the-line models are often the best sellers early on.
"The CrewMax pickup, sporting the range-topping 5.7-liter V8, is Toyota's biggest seller, to the point where supply isn't keeping up with demand."
Well, so much for Toyota's "green patina." Someone tell us again - how many Priuses does Toyota have to sell to offset one gas-guzzling CrewMax?
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Shawn 9:11AM (4/16/2007)
Love the spin Damon. ...You made it sound like Tundra is selling well. Keep up the good work. Shouldn't this accompany some type of Autoblog Green propaganda about emissions or that no one really needs a full size truck?
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P to the C 9:26AM (4/16/2007)
If this were about a domestic maker it would probably read something like "GM slashing production as sales of their newly redesigned full-sized truck line fails to meet expectations...". Since it's Toyota they get a pass. When these hack writers continually say that domestics suck and imports rock how can you blame the public for having the same misinformed opinions?
Thanks guys, you're doing a great service to the American public.
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DarkKnight67 9:44AM (4/16/2007)
It almost sounds as if they are making more of the higher cost Crewmax to cover the expense of putting too much cash on the hood.
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TM Worker 9:40AM (4/16/2007)
The fully-loaded Toyota truck is the best of the bunch by far which is why demand is so high for it. Toyota charges a premium which buyers are happy to pay. Check out the latest episodes of 24 where the Tundra is featured. It's a hit. Plain and simple. Built in the heart of Texas - San Antonio by Americans! Go Tundra. Go Toyota!
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jg3 9:47AM (4/16/2007)
TM Worker,
Yeah, that's why it was MT's TotY...oh wait, that's the Silverado. Doh!
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John Crouse 10:02AM (4/16/2007)
The Tundra was not allowed to be the Truck of the year...only 4 trucks were in the running with the the new chevy and gmc full-sizes, the honda ridgeline, and something else that I forget. The Tundra will be allowed in next years test.
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Castle 10:10AM (4/16/2007)
Shawn, the Tundra is selling well relative to its targets. Its not going to out-sell the domestics, there is no way they can with a plant capacity of 250k.
But trying say Autoblog has bias because the article doesn't conform to your preconceived narrow-minded views is bullshit.
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Brad 10:22AM (4/16/2007)
This happens a lot in the auto industry. The manufacturer will forecast their sales mix and order parts accordingly. Then a version that they didn't think would do so well becomes what everybody is wanting so they have to scramble to meet demand.
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icetraxxg5 10:28AM (4/16/2007)
#7
Even though the Tundra was not allowed in MT's TotY, it would not have won as Motortrend wrote a Tundra vs Silverado article an issue or two after the TotY issue and the Silverado won the comparison.
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Realist 10:28AM (4/16/2007)
Geez, you simpleton townsfolks, put down your torches and pitchforks. Damon is simply telling you some facts.
And the fact is, Toyota is generating some positive buzz. But here's the kicker - they're generating it for their HIGHER-END MODELS (read MORE EXPENSIVE).
The simple fact that Toyota has already raised awareness and made people notice, already made Tundra a winner in their eyes. If you factor in the fact that 80% of their customers actually desire their top-of-the-line models makes this even sweeter.
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JDBreaux 10:37AM (4/16/2007)
Toyota only makes what the sales arm orders. Toyotas are not made until they are sold to the sales division. Toyota is basicly 2 companies under one umbrella. This article is a NO DUH when you understand that fact. It is one of the reason Toyota is so successful. If it aint selling it will be cut down on the production line.
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Mike 10:36AM (4/16/2007)
TM Worker,
You obviously collect a paycheck from the big T so I understand your bias, but really, the Tundra is a POS wannabe real truck. As far as it being on 24, that's just another thing Toyota copied from the American competition. The '04 F150 was all over 24 when it came out like 3 and a half years ago.
The reason they only sell trucks with the 5.7L engine is because it's the only thing that's decent or competitive on the vehicle as compared to the domestics. The exterior is hideous, the frame, weak, the interior is ugly as sin. There is going to be that group of people who will buy Toyota because they are brainwashed by the PR spin they have put on their halo reputation (which, in reality, isn't so great) and therefore they will always sell some of what they build, but they are just not hitting the mark with this one.
Sorry Toyota
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Shawn 10:51AM (4/16/2007)
Castle, are you trying to tell me Toyota set its target at 3rd or 4th place in terms of sales? That's total BS and you know it.
Toyota is to the truck market what domestics is to the car market. If Ford or GM released a car that os more expensive with lesser safety rating, and absolutely nothing new, Autoblog and you would be proclaiming it a loser.
Instead, you try to justify by saying how much it "hit the target." Toyota do not make vehicles to be anything less than the top seller. It is like Microsoft in software. Tundra is just Toyota's Zune.
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aliasfox 11:14AM (4/16/2007)
I wouldn't be surprised if their target was about 250k - That's still at least about 25% more than the numbers they were selling at before, right? There's no point in building an extra 700k in plant capacity when you have no idea if your truck will take or not.
And besides, a 4x jump in sales between generations would be miraculous for any company.
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Guenther 11:39AM (4/16/2007)
Shawn- total capacity that could be allotted is about 370k units- Princeton (TMMI) was building about 120k units at capacity. San Antonio (TMMTX)can build about 250k. That is the out-most. The last truck sold about 115-120k units a year. If they sell 20k truck a month, they'll be on schedule. The maximum forecast at any point was about 220k units in 07, a few more the next year.
What is this weak frame argument based on? I'd really like to know. Is it because they don't use a fully boxed frame??? Look under a super duty...
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Snark 11:55AM (4/16/2007)
"Toyota do not make vehicles to be anything less than the top seller."
Toyota cannot make enough of this vehicle at the present time for it to be the top seller. Their plant literally does not possess the capability to produce as many Tundras as F-150's. Therefore, it is a literal, physical impossibility for Toyota to have anything of the sort in mind. By setting production at about 250k, they consciously targeted the 3rd or 4th place. I think your logic is a little off.
"If Ford or GM released a car that os more expensive with lesser safety rating, and absolutely nothing new, Autoblog and you would be proclaiming it a loser."
But that hasn't happened, so this putting words in your opponents' mouths in some weak attempt to demonstrate the bias that so offends your fanboyism just doesn't work. Sorry. If you can demonstrate a case in which that happened, I'm all ears, but "but you'd say this if this improbable event happened!" stuff no worky so well.
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Dave 12:21PM (4/16/2007)
#12 "There is going to be that group of people who will buy Toyota because they are brainwashed by the PR spin they have put on their halo reputation (which, in reality, isn't so great) and therefore they will always sell some of what they build"
This is true with any automaker, not just Toyota. There are people who won't even compare this truck because it's built by Toyota. Then there are people who only buy American, German, Japanese, or whatever cars because they think they better, etc.
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synergeist 12:31PM (4/16/2007)
Dave
It's indisputable that domestic automakers make a superior full-sized work truck than newcomer Toyota. Furthermore, the domestic automakers employ and support more Americans than Toyota or any other foreign manufacturer. These points should weigh heavily in the minds of those seeking a good value and responsible choice in their purchase of a vehicle that many small and large businesses count on for their livelihoods. Nothing short of America's future resides in the choices made by the American consumer.
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AR 12:35PM (4/16/2007)
#12 "There is going to be that group of people who will buy Toyota because they are brainwashed by the PR spin they have put on their halo reputation (which, in reality, isn't so great) and therefore they will always sell some of what they build"
Same thing applies to GM, Ford and Chrysler. You damned rednecks are all brainwashed. A truck from TOYOTA you say? It can't possibly be a *REAL* truck because it's built by TOYOTA! Do you see the ignorance and hypocrisy in your comments Mike?
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