Toyota Not Panicked Over Pickup
By David E. Zoia
WardsAuto.com, Apr 4, 2007 10:10 AM
Toyota Motor Sales U.S.A. Inc. is taking the launch of its new Tundra in stride, refusing to panic over the prospect of using higher incentives to move the fullsize pickups off dealer lots.
Toyota last week added a $1,000 trade-in allowance on top of a discount of up to $2,000, a move considered unusual for a vehicle less than two months into its launch, particularly for Toyota.
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But executives say that’s just part and parcel of today’s highly competitive truck market.
“Certainly the whole segment is very incentive-driven,” Don Esmond, senior vice president-automotive operations, says during a conference call with reporters to discuss March sales. “If you look at the market, a lot of competition has been ramped up. There’s $5,000 cash, trade-in cash, dealer certificates – a lot is going on in the market.”
Esmond says Toyota’s incentive programs vary regionally, but most are focused on “transaction issues,” helping dealers close the sale by contributing to trade-in allowances or financing. “We will continue to monitor the market to stay competitive,” he says.
Toyota delivered 13,196 Tundras in March, up 7.8% on a daily-rate basis from year-ago (28 selling days vs. 27), when 11,800 were sold.
Toyota is sticking to its forecast for sales of 200,000 Tundras in this calendar year, Esmond says, and he expects demand to escalate as the auto maker finishes the production rollout that is seeing CrewMax models now beginning to dribble in to dealers.

Toyota delivers 13,196 Tundras in March.
Esmond says Toyota should begin to have the right mix over the next 60-90 days, and “we’re excited about what the market will hold.”
Toyota says it has sold 16,000 Double Cabs so far this year, triple last year. It accounts for about 83% of the Tundra’s mix to date, with regular cabs accounting for about 8% and the CrewMax 9%. Over time, Toyota expects that to shift to 6% regular cab, 64% Double Cab and 30% or more CrewMax. Initial demand for the 5.7L V-8 has been stronger than anticipated, the auto maker says.
Tundra customers mostly are Toyota owners, Esmond says, with some sales coming from buyers switching brands, new to the pickup segment or first-time vehicle buyers.
General Motors Corp. says it hasn’t been impacted by the Tundra, confirming Esmond’s take that most buyers are Toyota loyalists.
“Toyota is drawing from a very loyal Tundra customer base right now,” says Paul Ballew, GM’s executive director-global market and industry analysis. “So we’re not seeing a lot of cross-shopping or interaction occurring at this point. We’ll see. Out of the gate, we’re not seeing a big impact.”
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Toyota officials dismiss criticism the truck may be priced too high, though Esmond says the auto maker may look to expand sales in the commercial side of the market by putting in vinyl seats and stripping out some content.
Tundra sales contributed to Toyota’s best-ever sales month in the U.S., delivering 242,765 cars and trucks, up 7.7% from like-2006.
Included in the tally were an all-time record 19,156 Prius hybrids, more than double year-ago. That was due in part to the reduction in tax incentives – from $1,575 to $782 – that took effect at the end of the month and pulled demand into March. Toyota also had incentives on the Prius, including 0% financing for 24 months.
Although that sales pace is expected to slow somewhat, Toyota still plans to sell 175,000 Priuses this year and says it currently has only a 20-day supply of the vehicle.
The auto maker says March marked a milestone for hybrid-electric vehicles, as Toyota sold its 500,000 (including Lexus models) since launching HEV sales in the U.S. in 2000.
The month also was a record March for passenger-car sales for Toyota overall.
The sell-down of outgoing Scion xBs and xAs continues, Esmond says, with only a 15-day supply in stock. The new xB hits the market May 7. There are less than 4,000 xA models in stock.
dzoia@wardsauto.com

© 2007 Penton Media, Inc. All rights reserved.

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2007 double cab, 5.7, 2wd, nautical blue metallic, bu, ds, kg, nv, wr, 37,ss, v5

I payed 1500 under msrp. My truck was about 37,000 out the door. I coulda got a ford, chevy, or dodge for considerably less but am VERY glad I didn't!

I am very satisfied with my Tundra. Glad I got it and don't miss the extra money I paid for it. I think Toyota realizes that. They of course are trying to be competive, maybe trying to get some more out on the street. I believe that very few will be dissatisfied with the new Tundra once they drive off in one (even if they cost a little more).

BTW, this is my first Toyota truck. All previous have been Chevy/GMC.

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2007 Tundra DC SR5 5.7L 4X4
TRD, Leather, Backup Cam, Tow
Blue Streak

Mods: Black Line-x bed, Husky Liner floor mats, Yota billet shifter, Flowmaster Super 40 muffler (dual in/dual out) with rear exit SS exhaust tips, Firestone Destination 285 65 18 MTs. Truxx 3-inch lift kit. Bushwacker pocket fender flares.

So looking back at ordering your truck. Was it worth it or too much stress involved for you? I guess what I am saying is would your order one again and wait about the same time? Or buy one off the lot?

Very happy to hear your happy with the truck. I always feel bad for people who are unhappy with their purchase.

I'm going to tell you that for me the styles and option packages have just gotten out of hand for a lot of manufacturers. You have to start researching some trucks a year ahead of time because it's all so confusing. But then again I am a cheap......uh.......frugal.

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Please Click for Sarah's Wish

It took me a few weeks to really figure out what options I wanted on my truck. Had planned on an sr5 with navigation, the limited 20" wheels and the rear seat entertainment system and perhaps 4x4. Found I could only get the rear seat entertainment in the crewmax and wife wanted it, but needed the normal size bed. So it was a double cab.

Although it was going to be a limited (I wanted the fog lamps and the 20" wheels and was the only way to get that setup) up until right before the order was out through and that was after waiting a day extra to see the carved wheels. Did not want to spend the extra on the limited so at the last minute I went with the sr5 without fog lamps.

Went with the sr5 as i am "frugal" as well. Will only have the truck for one or two years at the most and will order a new one and might try the limited then.

I do think ti is easier to find one close to what you want on a lot and buy it that day.

yeah, i would do it again, and the same order. well, i did mess up on the xtra skid plate (got the chrome one up front and thought i was getting the aluminum one), but I had done my research.

Glad I order what I wanted. it was worth the wait. at first all that came to the lots around here were the limited trucks with 20 inch wheels, not what i wanted.

i didnt' really want the tow mirrors but had no choice with my other options. they came with the package, but now i really like the tow mirrors. the bottom blind spot kicker mirrors are very nice. I do have to however fold them both in to get this beast in the garage.