AutoNews: Soft Market Threatens Tundra Sales Goal

[megeebee]

Soft market threatens Tundra sales goal


Mark Rechtin

Automotive News | January 7, 2008 - 12:01 am EST


LOS ANGELES — Toyota executives say they couldn't care less that the Tundra full-sized pickup fell 3,445 units short of their 200,000-unit sales goal.

But what should have them concerned is whether Tundra sales can grow enough to reach Toyota's goal of 300,000 by 2010.

Toyota announced the 300,000-unit target when it launched the pickup a year ago. At the time, executives said they expected to reach that goal by the end of the decade. But that was before the subprime credit crunch, housing market swoon and oil price surge.

Given the soft market for pickups, it seems likely that Toyota will be left with some excess capacity this year at its truck assembly plants in San Antonio and Princeton, Ind.

Those two plants now have the capacity to produce 280,000 Tundras annually. Toyota could push that to 300,000-plus by cutting production of the Sequoia SUV at Princeton.

Toyota expects Tundra sales will be in the low 200,000s this year, predicts Bob Carter, Toyota Division's general manager."We know the segment is going to be tough," Carter says. "There's a lot of headwind."

Industry sales of full-sized pickups are likely to fall short of the levels achieved three or four years ago, Carter acknowledged. Nevertheless, he predicts Tundra sales will meet its sales targets. "There is no cause for alarm," Carter says. "We are on plan."

But much of Tundra's sales growth will result from a big inventory for the entire year rather than growing market demand. In 2007, a slow rollout of popular models meant dealers were undersupplied from January through June.

Carter has noted that Toyota had to use incentives to support Tundra sales earlier than he wished, but market conditions forced the automaker's hand. How long will it take for Tundra sales to top 300,000 units? Carter was evasive.

"We have 44 Tundra models now," he said. "In the future, that segment requires even a broader lineup than we have today."

SOURCE: http://www.autonews.com/apps/pbcs.dl...plate=printart

[paul8488]

Oh, I think they'll hit 300,000, even before 2010. Americans love Toyota... why would anyone assume that they won't learn to love the Tundra?

[EldoFan]

Is this really any surprise?

[likearock00]

Originally Posted by paul8488

Oh, I think they'll hit 300,000, even before 2010. Americans love Toyota... why would anyone assume that they won't learn to love the Tundra?

Because Americans love to kill and dismember anything that achieves success in the US. When Toyota becomes #1, the citizens and media will do whatever it takes to bring them back down. We thrive on that- build them up then cut 'em down!!

[paul8488]

Well then lets hope that Toyota hits number one this month... that way the dismembering can begin!

[zete]

That weird dislike of those that succeed seems to be a North American disease. We have it in Canada, too. It's almost like you're supposed to be embarrassed if you're successful. And if you're not sufficiently humble the media will take care of ensuring you are humbled. It's totally bizarre.

It seems that the media can't simply be unbiased in the way they view things. When GM was down and Toyota fully ascendant all they could do was look at ways of besmirching GM. Now that Toyota is close to being #1 the knives are out.

What I'd much rather see is fair and honest comparisons. If something is substandard then report it as such. If something is better, then report that. Don't give one automaker a free pass -- CR, are you listening -- while assuming the others are all idiots who can't do anything right. Instead, examine each car without bias. It's hard, we all have biases, but the media should try hard not to be biased. Or, if it can't, then provide two viewpoints with a bias each way.

Today, with cars as well built as they are, the media really needs to simply focus on the vehicle, it's fit-and-finish, its dynamics, etc. Overall reliability will be pretty much the same as shown by JD Power. Sure, some new models will have problems, but that can happen to any automaker -- again, CR finally gets this.

As for the Tundra, Toyota may well sell their 300,000 by 2010. Then again, if hybrids become the defacto transmission choice in pickups they might have an issue. They don't, as yet, have a viable hybrid system for their pickups and large trucks. It's a golden opportunity for GM -- and Dodge. As the price of fuel goes up, even a couple of mpg can make all the difference.

If the Tundra gets through 2008 unscathed by quality problems they might have a good year. One more year of bad quality and they could well be snookered as the media will simply dump on them. I think the media is primed to dump on #1, whoever that is. And the Tundra makes a tasty target, what with the hype and Toyota's supposed infallibility.

[CBECK]

I wouldn't blame the housing industry on their lack of hitting their goal. I would pin it on lackluster engineering. Toyota should stick to what they know---cars.