Toyota Restarts Tundra Production For Export
Automotive News [sub] reports that Toyota is set to re-start Tundra production in their $2b San Antonio plant– although consumer demand for the full-size pickup is only obvious by its absence. “At the end of July, Toyota had about 60,000 Tundras in inventory, of which 45,801 units were in dealer stock. At the end of October, dealer stock had fallen to 29,784, according to Toyota. But Tundra sales have fallen sharply. Initially, the company had hoped to sell about 20,000 a month. When the economy began to slow late last year, the forecast was revised to about 15,000. In recent months Toyota has fallen well short of hitting its goal. Combined September and October sales were 14,121 units, off 62.3 percent from last year.” Even $10k on the hood of a brand new Tundra ain’t movin’ the metal– although it is disappearing any hope of obscene profits. “I have no doubt that there is a pent-up demand,” said John Matthews, managing partner of Pat Lobb Toyota of McKinney, Texas. “If I don’t see another Tundra until January, I’ll be happy,” said Jeff Daniels, general manager of Toyota of Muncie in Indiana. Imagine how Chevy dealers feel. Anyway, as commentator JT rightly points out, ToMoCo is ramping-up production to ship these bad boys to the Middle East. Hey, given fixed costs, they might as well do something with them.
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