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Toyota Not Getting Much Sales Pickup for Tundra Yet

  
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Toyota Not Getting Much Sales Pickup for Tundra Yet

 
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Administrator | Posts: 4666 | Joined: 02/07
Posted: 04/24/07
11:44 AM

One min some one claims they are saleing well and the next they are not..
Tundra

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Toyota Not Getting Much Sales Pickup for Tundra Yet

April 16, 2007

By Steve Miller

DETROIT -- Consumers are giving Toyota's Tundra pickup truck a cool reception.

Sales for the Tundra, which launched in February, lagged last year's by 1% in the first quarter and continue to be dwarfed by sales of Toyota's smaller truck, the Tacoma, per Autodata, Woodcliff Lake, N.J.

While that percentage may sound minute, Toyota has high hopes for the retooled truck. Toyota projected the new Tundra would outpace the previous model, which sold 124,508 units last year, by 60% in 2007 with target sales of 200,000.

Why the slow sales? Brian Smith, corporate truck operations manager at Toyota, said the 5.7-liter engine that was featured in initial TV spots, including one that ran during the Super Bowl, was not available at dealerships until the middle of March because of production issues. Toyota spent $51 million on measured media for Tundra ads in February, per Nielsen Monitor-Plus.

Alex Rosten, an analyst at Edmunds' Auto-observer.com, said Tundra had a "great" launch, but "it was for a vehicle that was not yet on the lots. People saw the 5.7-liter in those spots, towing 10,000 lbs. up and down a hill, and wanted to see that truck at the dealer. But it wasn't available yet. That's a problem."

Nevertheless, the Tundra's slow sales have prompted the normally incentive averse Toyota to offer up to $2,000 in cash off the price in addition to subsidized financing on the Tundra through April 30. The overall cost of incentives on the Tundra is lower than for some others, such as the Dodge Ram or the Ford F-150.

The full-size truck segment is one of the most competitive in the industry and Toyota expected to offer incentives, but "it is early for this and we usually don't see this level of incentives this early in the game," said Rosten. He added that the Tundra's sticker price—$22,290 versus $18,220 for the Ford F-Series—is also an issue for many consumers.

"The Tundra . . . is not meeting their sales target," said Rosten. "They anticipated that their work truck sales would be 15% of overall Toyota sales and now they have scaled that back to 5% because the truck is too expensive. You can get the [Ford] F-series for less."





Source:
http://www.brandweek.com/bw/news/autos/article_display.jsp?vnu_content_id=1003571890  

materialman materialman
New User | Posts: 47 | Joined: 08/08
Posted: 09/30/08
09:09 AM

The sales are down because the trucks are expensive, burn lots of gas, and full size pickup buyers for the most part are the last group of Americans who understand supporting American companies is important. You can buy a GM, Ford or Dodge cheaper, and you easily have just as good a truck, and I really feel if you are going to use the truck as a truck, a better truck. If you are looking for something to go to the mall in, the Toyota is just as good, but if you are going to work construction or put one on a pipeline right of way, buy American. You will spend less money and it will hold up better.  

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