• Dec 10, 2007
Toyota is selling a heap more Tundra trucks this year than it did last year. It's simply not selling enough -- maybe -- to reach its goal of selling 200,000 units this year, the first year the all-new bigger and badder Tundra has been on sale. As of the end of November, the big T had rolled 177,336 Tundras off dealer lots (no mention of whether or not any of those included the old model), which represents a 58.3-percent jump in sales over last year's numbers.

But the segment overall has taken an 8-percent plunge in the tide of recent economic developments, and November Tundra sales were down almost 17-percent from October: 14,988, compared to October's 17,868. For Toyota to reach its goal, it has to move more than 22,000 Tundras in December. This means it has to post a sales increase of more than 50% in a market looking more and more like... a barren tundra. If it's really serious about making that goal, some of you out there should be licking your chops: there's money on the hoods.

Bob Carter, Toyota Division general manager said, "We use incentives tactically to offer reasons to buy Toyotas at certain times of the month." You know the reason, and this is the month. Current model year 2007 Tundras get interest-free financing for five years, while 2008 models will get interest-free financing for three. Come 'n' git it.

[Source: Auto News]



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  • 42 Comments
      Bryan
      • 7 Years Ago
      I wonder how many tailgates have fallen off? I saw someone loading stuff in a Tundra the other day and I said to myself" I sure hope they dont put anything on the tailgate!" LOL What a turd.
      • 7 Years Ago
      umm if the industry is down 8 percent then toyota would only have to move 184k units to be down 8 percent from goal. Of course...they have until March 08 to get past 200k anyway.
      Of all the stupid things to claim-it's definitely not one less bolt that's slowing tundra sales. And a properly designed 5 bolt is more than enough in a light duty truck-and lets toyota stick to it's 5 bolt standard used on every vehicle.
      300k is going to be a hard sell for 08 though.
      • 7 Years Ago
      Wait, didn't Toyota sell something like 120,000 last-generation Tundras in 2006? Even if they *only* sell 190-195K in 2007, how's that a failure? Really, people! The domestics would KILL for 50%+ sales growth like that one year into a model change.

      I think some of you people need to stop counting lugnuts and starting counting actual sales. Certainly you're allowed to base your buying decisions on mundane details if it floats your boat, but don't pretend that it matters that much to the other 90% of the truck-buying public.

      -SimianSpeedster
      • 7 Years Ago
      some other things to consider: gross overcapacity.

      the new Tundra factory in San Antonio was designed to produce 500,000+ units. the facility in Princeton, Indiana has capacity for 350,000+ units, including the Sequoia. the 200,000 units they are scraping for isn't a drop in the proverbial bucket.

      as a side note, the head person from Japan that was in charge of building the San Antonio factory was called back to Japan a few months ago. this is a very unusual move in itself; what's even more unusual is that he was put in charge of Toyota's "philanthropic interests" there.

      it's interesting to compare the pro-Toyota comments of the past, like "they-don't-need-incentives-the-products-sell-themselves", or my favorite, "the-Japanese-have-a-crystal-ball,-and-they-keep-knowing-fuel-crises-are-coming-and-ALWAYS-have-little-teeny-overpriced-cars-to-sell".

      Toyota has always wanted to emulate GM. if they want to be a full-line corporation, they need to sell vehicles in all categories that GM does. this always comes with a price, and they are paying it (and will continue to pay it) now.

      evey penny in incentives is coming directly from Toyota's bottom line. I can only imagine how much all that plant overcapicity is costing tnem, too.

      welcome to the USA!

      AZMike
        • 7 Years Ago
        Hey AZMike. Do you know id Toyota still offer "Picks" to their dealers?

        A "Pick" is a cash reward for the dealer, placed on models that are stuck in the system. The "Pick" is over and above whatever cash was placed on the hood of the vehicle. If they are paying "Picks" on these and placing cash on the hood, they may not be enjoying much of a profit margin if any with these.
        • 7 Years Ago
        Mike- Princeton is built to build about 200k trucks, split between the Sequoia and Tundra. they can build 350k vehicles there, but this includes Sienna minivans, which is a fine selling product for them.
      • 7 Years Ago
      Try trading in a 2007 Tundra for a 2008 and you loose $18,000 on a 6 month 9,000 mile $47,000 vehicle. Not many of us can afford that kind of depreciation, can you.
      Look at the Ford or Chevy.
      • 7 Years Ago
      Unless it was free, you couldn't give me any incentive to own THAT ugly interior.
      • 7 Years Ago
      A business associate of mine bought his Tundra in May and according to him, this will be the last product he will ever buy from Toyota. So far, he has taken it in at least three times for dash rattles and squeaks, once for a failed radio, another for a harsh clunking shift from second to third, and third to fourth, once for power door locks not working, and to top it off, he had to replace the front brakes and rotors at 11K at his expense. The dash squeak is back and the only temporary cure is to spray the squeak with wd40. No wonder they can't match the GM or Dodge warranty.
      I'm not dissing Toyota by the way, I did consider buying one last August until I talked to my friend and went on all the Tundra blogs and read all the complaints other owners had.
      There must be some reason the top three American bigshots left the fold.
      Makes me want to sell my home building business and open a Tundra repair shop.
      • 7 Years Ago
      I dont think this news suprises anyone. When it launched I said it would sell about 200,000 but never be able to reach 300,000 as they hoped (remember after this year Toyota was hoping to move 300,000 of these per year). If they could not sell their goal in the 1st year, they will not sell 200,000 in 2008. Its no longer an all new truck. The 'got to have it' factor greatly diminishes after the 1st year. Even with a full year of sales in 2008 they will struggle to sell 200,000. As gas prices remain high people will continue to look away from trucks/suvs for transportation.
      • 7 Years Ago
      Its too bad most of the stupid remarks I have just read are conning from non toyota tundra owners, I own one and it surpased my 3/4 ton chevy hands down. It truly is an amazing truck. But it does not have 7 lug nuts like Ford had for a couple years.I woun't say no more...
      • 7 Years Ago
      Well, it looks like Toyota is on the right path towards becoming the old GM. Honestly, I thought Toyota would know the dangers of incentives better than anyone else. These incentives now are going to hurt long term. The public will start to expect 3-5k off their tundra next year, and then more the year after. There is no way Toyota will keep pace. I doubt that they will even sell 200k units next year, as the all new Ram and F-150 will be available. Toyota has 4 or 5 long years ahead of them for the Tundra.
      • 7 Years Ago
      I'll take the cash... preferably without the truck.
      • 7 Years Ago
      Toyota might have a little more luck moving these if they learned to equip them the way buyers want them, or would allow dealers to actually order exactly what they wanted, like domestic dealers do.

      instead, Toyota builds the trucks the way Toyota wants them, and then shoves them down the dealers' throats.

      case(s) in point:

      I went to a very large Toyota dealer here in the Phoenix area last week to see what I had been missing. turns out, not much.

      they had a dark gray long-bed regular cab work truck. this truck was equipped as follows, with the following FACTORY (not dealer, or distributor) installed options:

      -4.7 litre V-8

      -carpeted floor mats (bear in mind that this truck had a rubber floor, not carpeted)

      -stainless door sill plates (just what you'd want on a work truck)

      -automatic dimming inside mirror (another work truck "must")

      -and last but not least, a $1,000 TRD factory-installed dual exhaust system!

      dark colors on work trucks are a hard sell just about anywhere, but are near-impossible here in Arizona.

      the exhaust system was another baffler, as you can get a really nice custom exhaust system installed just about anywhere for about $350; and this is not something that one would choose for a work truck.

      they must have been hoping for a miracle, because they had NINE MORE with absolutely identical equipment..same color, everything.

      the strangest thing to me is that this is not rocket science. they had three companies to follow, who had been building trucks for, oh, a hundred years or so, and you'd think they'd just copy them, as this is what the Japanese do best.

      instead, they mistakenly decided that truck buyers could be pigeonholed just like a Camry buyer, and it didn't work.

      AZMike
        • 7 Years Ago
        are you *sure* that wasn't what the dealer ordered? instead of this being Toyota's decision, far more often I see the dealer orders them that way so that they make more than their normal $1200 markup (or whatever) on the vehicle. if you saw 9 more exactly the same way, then it's the dealer that's ordering them in that specific configuration. dealers don't make much on a stock vehicle (comparatively), so they load them up to pad their own bottom line.
        • 7 Years Ago
        Travis,

        the "Toyota Production System" doesn't allow dealers to actually order vehicles for stock.

        the factory builds what it wants to, and fills up the storage lots. then, the reps call the dealers to let them know what's coming. the dealers might have a choice of color, but that's about it. if the dealer is not in Toyota's good graces, they might not even get that choice; instead, they will get their monthly allocation of all the vehicles that are not good sellers, like ten of last year's Land Cruisers.

        almost all the Japanese companies, whether they build vehicles here or not, do business the same way. build 'em, fill the storage lots, and then stuff 'em.

        of course, this sounds a lot like the much-reviled Chrysler sales bank of 2006, doesn't it?.

        as always, if done by a domestic company=bad; done by a import company=smart, well-thought decision!

        dealers are pretty good at knowing what to order for their particular area; they know what sells, and what doesn't. however, when the factory is making all the decisions, all that logic goes out the window.

        this was readily apparent during the 2007 model year, when Toyota didn't build enough low-end trucks. this is truly a mystery, as all they needed to do was follow the leaders, GM, Ford, and Dodge. just look at their percentages of which models were sold, and duplicate that. instead, they decided to go for the higher-profit upscale models, and they weren't wanted.

        AZMike
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