Toyota's New Goal: 300k Tundras P.A. by 2010

by Frank Williams

Published: January 7th, 2008

toyota s new goal 300k tundras p a by 2010

While Toyota Motors North America (TMNA) finished 2007 in overall better shape than its domestic competition, they failed to meet their goal of selling 200k of their new, full-sized, Texas-built Tundra pickups. Hope leaf springs eternal. Even as the market for large pickups follows the U.S. housing market into the crapper and fuel economy standards get tighter, ToMoCo's sticking with their goal of 300k annual sales by 2010. Toyota Division GM Bob Carter told Automotive News [sub], Downturn? What downturn? [paraphrasing] In fact, Carter predicts Tundra sales will hit the low 200ks in 2008. "There is no cause for alarm. We are on plan." When asked how long it'll take for Tundra to top the 300k mark, he clammed up. However he did mention they "have 44 Tundra models now, and in the future, that segment requires even a broader lineup than we have today." So let's see… they have a model that is selling below expectations in a market segment that is shrinking so their solution is to increase the complexity of the model line-up to generate sales. The Big 2.8 have been hiring TMNA executives right and left. With marketing logic like that, you have to wonder if Toyota's been reciprocating.

Frank Williams

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4 of 23 comments

Samir Syed on Jan 07, 2008
History has proven that Toyota knows what it is doing. At one point in history, 90% of all cars were Fords. Just saying. The only thing history teaches is that history isn't always a good predictor of the future. Toyota has been entering markets with an increasing degree of difficulty, over time. The small car is where everyone starts out (except for Italians, they start with the supercar and work their way down). Then the family car. Then the luxury car. Then, after all that, the truck. It's a tough market, one that is much more educated than the car-buyer, more loyal because of dealer relationships and much more demanding about performance (not in the 0-60 sense, but in the "can this haul a payload" sense...)

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Quasimondo on Jan 07, 2008
No. There is a difference. Toyota is making money and gaining market share, while GM isn’t. Thus, any incentive from Toyota can be viewed as strategic investment and any incentive from GM would be desperate bribe that will hurt resale value. When there's $6k slammed on the hood to get somebody to drive off the lot in a truck, around my neck of the woods we call that a bribe. Whether Toyota or Chevy loses money on a sale or not is irrelevant. If Toyota is confident that they'll gain a significant share of the truck market, then they shouldn't be worried about not selling enough to the point that they're flashing cash to move metal. After all, you don't see discounts for Camrys and Corollas, do you? Toyota's incentive laden trucks are just as much of a desperate bribe as GM's incentive laden trucks.

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Rtx on Jan 07, 2008

As someone who uses (and abuses) a work truck every day I can vouch for the Toyota Tundra. It is hands down the toughest work vehicle I have ever driven. While the Chevys and Fords shake and rattle when they get a few miles on them the Toyota is as quiet as the day it was new. The 4.7 litre V-8 kicks the Chevys ass and absolutely dominates the Ford. All Toyota needs to do with this truck is add a diesel option and they will own this segment of the market too. We are starting to see quite a few of the subcontractors using Tundras as their everyday work hauler now that they have supersized the cab area. Toyota will make their 300K target no problem in my opinion.

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KixStart on Jan 08, 2008

It seems to me that the size of the rebate isn't as important as the net transaction price. It looks like the Tundra might be winning that battle (Edmunds).

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