Tundra Average Incentive Now Higher Than Silverado

[johnny smallblock]

I know there were several posts on this yesterday, but I figured some might be interested in seeing what the big, bad NYT had to say about it.
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Toyota Deepens Discounts on Its New Pickup

DETROIT, March 29 — Toyota Motor continues to increase discounts on its new full-size pickup, the Tundra, another sign that it is not cutting into the profitable truck market as much as rival automakers had feared.

Analysts say they are surprised to see such heavy incentives on a vehicle that went on sale less than two months ago, but Denise Morrissey, a spokeswoman for the automaker, said that such offers were “just part of how you do business.”

So far the Tundra, which was redesigned to be bigger and brawnier, has fallen short of its publicity. Toyota, known for its commitment to vehicle safety, suffered a mild embarrassment last week when the federal government gave the Tundra a four-star rating in frontal crash tests — one star fewer than all competing models made by Detroit.

more at link:
http://www.nytimes.com/2007/03/30/au...ss&oref=slogin

[Strapping.Young.Lad]

Great article.

Everything is true, and shows that Toyota cannot compete with the US.

[M_RABID]

Ya know the new Tundra commercial that shows Toyota's new truck pulling a trailer up a huge ramp and down the other side? Yeah- you've seen it.

GM wants two disclaimers added to the commercial:

When they say "Tundra half ton can pull 10,000 lbs and show the truck pull the trailer up the ramp: [disclaimer one] TRAILER SHOWN WEIGHS 5000 LBS.

When they show the truck screeching to a halt down the back side and credit the Tundra's 4-wheel disc brakes: [disclaimer two] TRAILER SHOWN EQUIPPED WITH ELECTRONIC TRAILER BRAKE SYSTEM.

More Toyota smoke and mirrors.

[dallennium]

http://wardsauto.com/home/tundra_incentive_silverado/


Edmunds.com’s “True cost of Incentive” report says TCI on the Tundra in February was $1,647, vs. the Silverado’s $1,529. Chrysler Group’s Dodge Ram 1500 model had the largest average incentive – $5,655.

Edmunds calculates TCI based on a variety of offerings, including leases and cash rebates given to consumers, as well as dealers.

[Realist]

The Sierra had higher average incentives than both of them, the F150 even higher, and the Dodge Ram has had the highest average incentives out of all full size trucks.

[HEVguy]

Glad to see it (from a resale / needing help selling perspective). I just hope they aren't selling more of them because of it!

[Slack]

Clearly Toyota is going easy on the Big 3 Trucks and easing in to the Full size truck market. The 2012 Tundra will really throw the gloves down and pull out all the stops..... any one else feel dizzy??

[paul8488]

The Sierra had higher average incentives than both of them, the F150 even higher, and the Dodge Ram has had the highest average incentives out of all full size trucks.

So what you're saying is the Tundra has higher incentives than the Silverado...

[Perian]

Let's take it easy here - this is very misleading.

The majority of the incentives are on the base vehicles, which as everyone - including Toyota - now knows; were mis-priced at introduction.

THE IMPORTANT THING to keep in mind here is that Toyota is selling the $40K and up double-cabs as fast as they can make them.

That, and that alone is what GM, Ford and DCX should be VERY afraid of.

[hunchman]

Clearly Toyota is going easy on the Big 3 Trucks and easing in to the Full size truck market. The 2012 Tundra will really throw the gloves down and pull out all the stops..... any one else feel dizzy??

clearly you are wrong....toyota went for the throat on this one......all the way from where it is built right down to their commercials.....I'm not looking for a fight but please look at what's happened a little closer

[tseas930]

Let's take it easy here - this is very misleading.

The majority of the incentives are on the base vehicles, which as everyone - including Toyota - now knows; were mis-priced at introduction.

THE IMPORTANT THING to keep in mind here is that Toyota is selling the $40K and up double-cabs as fast as they can make them.

That, and that alone is what GM, Ford and DCX should be VERY afraid of.

What are you talking about? I work at a Chevy/Ford/Toyota dealer and we haven't sold a Tundra yet. I am watching Chevy's and Ford roll out of here daily.

[give_it_all_]

clearly you are wrong....toyota went for the throat on this one......all the way from where it is built right down to their commercials.....I'm not looking for a fight but please look at what's happened a little closer

I think he was being sarcastic

[mcool]

Let's take it easy here - this is very misleading.

The majority of the incentives are on the base vehicles, which as everyone - including Toyota - now knows; were mis-priced at introduction.

THE IMPORTANT THING to keep in mind here is that Toyota is selling the $40K and up double-cabs as fast as they can make them.

That, and that alone is what GM, Ford and DCX should be VERY afraid of.

The domestics should indeed keep a close watch on what trim levels of the Tundra ARE succeeding, I completely agree. It is refreshing, though, to see headlines putting out a message of Toyota's reliance on incentives to move product. It's the same perception battle GM has to fight every time an incentive program is rolled out.

[Havasavana]

I'd think that what Toyota wants now is to get lots of these things on the road so people can see them and talk to the owners. A couple of thousand profit more or less is of no importance long term.

[macphisto]

It's not a question of just how many how level Tundras are selling now. It's the beginning of the model. How many of these guys are trading in their old Tundras? Is this sustainable for Toyota beyond the inital surge.

It's the same thing for many vehicles. The CR-V is a good example. It's selling well BUT this model is replacing a six year old vehicle. There are a lot of CR-V owners who have waited for a new model and have driven up sales.

The Silverado will be steady beyond its inital launch. The Tundra may see sales drop just like the Titan did.