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Toyota dealers offer up to $1500 cash back on Tundra


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Toyota Dealers Offer Discount On Newly Redesigned Tundra
By NORIHIKO SHIROUZU - March 9, 2007 10:06 a.m.
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Toyota Motor Corp. says some of its dealers are offering as much as a $1,500 discount on the basic work truck version of Toyota's newly redesigned Tundra truck, just barely one month after it went on sale.

The discount for the Texas-built large truck reflects the intense competition in this lucrative segment, and the challenge Toyota faces in its effort to substantially expand its sales in a segment long dominated by Detroit brands.

The discount is a one-month, nationwide program that began this month and is described by Toyota as "another tool," to spur sales, in addition to relatively low APR and lease deals Toyota has already offered since the outset.

While the Tundra launch is still in its early stages, Toyota's top management in Japan is concerned about whether the company can meet a target of selling 200,000 new Tundras this year, according to senior Toyota executives who spoke on condition of anonymity.

Toyota has manufacturing capacity to build more than 300,000 Tundras between two plants in San Antonio, Texas, and Princeton, Indiana. Some company executives, one insider said, believe Toyota might have rushed too much to build up manufacturing capacity for the Tundra when rising gas prices and an uncertain U.S. economic outlook may continue to impact sales of big gas-guzzling vehicles.

Industry executives and analysts have cautioned that the uncertain housing market could weigh on demand of large pickups from contractors. Moreover, Toyota's new truck is launching just as General Motors Corp. is accelerating the launch of its popular Chevrolet Silverado and GMC Sierra pickups, which boast the best fuel efficiency in the large pickup segment. Ford Motor Co., the long time segment leader, and DaimlerChrysler AG's Dodge brand, are heavily promoting their rival trucks, with "Truck Month" promotions.

Still, some Toyota dealers noted the single-cab version of the Tundra has not sold well as expected, even though consumers were snapping up the double-cab version. Toyota dealers said, among other factors, the Tundra regular cab was too loaded with features and was priced too high and thus has failed to become an attractive vehicle to plumbers, contractors and other price-conscious commercial truck buyers, the very buyers it has set out to dazzle.

In some regions, the dealers also said trade-ins they are receiving are mostly Toyotas. "We are trading in mainly Toyota trucks. Practically no domestics," one dealer in the Southeast region said.

Toyota's Mr. Smith insisted attracting commercial buyers and those previously loyal to domestic big-rig trucks from Detroit, "that's our goal long term. I don't think anybody had an expectation that in the first four weeks we have a completely different buyer makeup than our current Toyota [truck] customer base."

He said of about 8,500 people who bought new Tundras Toyota has sold since last month, about 30% of them did so by trading in domestic trucks. "We're pleased with the amount of domestic trades that are coming in on the Tundra. It's increasing every week."

Toyota's new program offers dealers on average three $250 "coupons" they can use per Tundra regular cab to entice the customer.

Toyota executives say a dealer could use as many as four coupons per sale to offer the customer as much as a $1,000 discount on the truck, but the total number of coupons they use per truck will have to be three on average at the end of the month.

Taking advantage of the Toyota factory incentive program, Southeast Toyota, the independent distributor of Toyota vehicles for Florida, Georgia, Alabama, North Carolina, and South Carolina, began offering on March 2 $1,500 dealer cash on the 2007 Tundra regular cab by supplementing the program with its own money. Southeast Toyota also will kick back $350 per Tundra sold when a dealer in its region meets the sales target it set on the big truck. It wasn't clear immediately how other regions of Toyota's U.S. market were taking advantage of the program.
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That is probably the most unflattering WT I've ever seen. I also read a news piece on the Tundra having incentives already. I believe Toyota was saying how they know how cash strapped or credit problem ridden work truck buyers are so they're offering incentives for them to buy the new Tundra.

Ah found it, it was from Edmunds:Clicky

Toyota Dealers Offer Discount on New Tundra

Toyota, in an effort to crack the "work truck" market with their new Tundra—and to help reach their sales goal of selling 200,000 trucks this year, is offering a $1,500 discount on basic Tundra models at some dealers.

Brian Smith, corporate manager of truck operations at Toyota's U.S. sales unit in Torrance, Calif., said the program should help dealers be able to prod more basic work truck buyers who tend to be "either credit-challenged or battling with negative equity" with their existing vehicles to buy new Tundras.

"At this point in time we feel like many of our [basic-work-truck] buyers are facing those constraints" and need a further assistance to help them buy trucks, Mr. Smith said.

Also, while the Tundra has been on sale for only a short time, Toyota's top management in Japan is concerned about whether the company can meet a target this year, according to senior Toyota executives who spoke on condition of anonymity. The truck is selling well to existing Toyota customers, but so far only a few have been sold to domestic truck owners—and in order to make their sales goals, they need more of those buyers.

As they say, stay tuned...

:rolleyes:

That's quite a spin from the PR dept, Toyota really does have the best marketing in the car industry. A decently loaded up Tundra actually doesn't look too bad.

Edited by big blue
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It's definitely too early to tell how the Tundra will do. I saw one in person for the first time the other day (in a parking lot). It was a double cab version, and I thought it looked very good.

quick question....did the Toyota truck 'oink' from the grille as you walked by it? Sorry. Couldn't resist.

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too much capacity, so need to offer incentives to keep the factory running. devalue the product to meet production targets.

i thought only GM Ford etc. had that problem.

and Chrysler...

I love how edmunds spins this...instead of a wise crack about how Toyota underestimated the Big 3 in this segment (again) they say this:

The truck segment is competitive, and Toyota shows it recognizes this.

Also, an interesting bit of news from pickuptruck.com....

Did you know Tundra sales are down from a year ago?

Toyota Tundra

15,990 -21.8% YTD

February 2007: 9,669

February 2006: 10,566

Edited by Dodgefan
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So where the f**k are the green groups flying down the street in their Toyota Priuses and bitching about Toyota becoming a gas guzzler??

Actually, they're not BECOMING since they HAVE BEEN for some time.

You know, I bet if we took the average gas mileage (city+highway/2=avrg) of all vehicles produced by Chevy and Toyota, and then took the average of that (add average mileage of all vehicles, divide by number of vehicles) the numbers would practically be the same.

It's not our fault that Jap carmakers can't make good trucks. They found success in this market selling reliable econoboxes and should go back to doing that.

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I don't know about that: when you have as much liquid cash on hand and as much success in a foreign market as toyota has, the 15 years of full-size truck sales performance toyota has scratched & clawed for is an outright embarassment.

So you say sales dictate how good a vehicle something is? That sounds like Toyota lover logic there, Balthy. :AH-HA_wink:

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So you say sales dictate how good a vehicle something is? That sounds like Toyota lover logic there, Balthy. :AH-HA_wink:

Not always, but in most comparisons the Silverado has beat the Tundra for superior build quality (which is hilarious), interior design, and exterior design, as well as overall capability.

Toyota has the same problems the Big 3 have with the midsize segment. They made crap for years, and only now are getting better yet they still have a ways to go.

(T-100 anyone?)

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I would not buy one if they gave me a $15,000 rebate!

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It has been on the market a month! One month does not make a trend. Let's wait about 6 before getting to excited.

But I thought through Toyota's marketing research they discovered there was pent-up demand from all those deprived domestic truck owners? Is San Antonio still ramping up production? Are dealers still lacking inventory? Those issues wouldn't justify a $1,500 discount after one month... It appears to me they sold almost half they intended.

It is interesting that very recent articles now imply eventual sales of 200k annually instead of 200k being Toyota's projected first year sales.

Interesting comparison:

Original expectations - Dec 10th article:

Posted Image

The bigger 2007 version, which aims to be a more legitimate challenger to the F-150, Silverado/Sierra and Ram, is set to start shipping to dealers around Feb. 12, which coincidentally is Lincoln's birthday (the 16th president, not the American luxury brand).

.

.

What determines a luke-warm reception? How much of a discount determines if Toyota is having problems meeting sales expectations? Are the same measures used to determine GM's product success/failure before people start railing in on GM?

.

.

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New Exepctations:

see above article:

He said of about 8,500 people who bought new Tundras Toyota has sold since last month, about 30% of them did so by trading in domestic trucks.

and this article:

The Japanese automaker has invested billions of dollars to relaunch its full-size Tundra pickup truck with an eye to the heartland market that has long escaped it... Introduced in mid-February, the Tundra sold almost 10,000 units last month. Toyota has said it expects sales of its Tundra to eventually top the 200,000 mark annually

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Toyota seriously expected 42.5% of current domestic truck owners to race into a showroom and sign on the dotted line?

This just proved to me that Toyota will not be taking the #1 automaker crown from GM this year. No way that management could make that much of a supposition and be proven correct. Not a chance.

Somebody had some seriously skewed market research done it looks like.

Edited by Solar Max
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i just saw the TURD today for the first time at the auto show.

What a pile of crap. It certainly is a big truck and no doubt the powertrain is likely good.

the interior is horrible. The seats are kinda comfy but the plastics are cheap and the dash layout is abysmal. the center stack is made of the cheapest switches and knobs in recent memory. What got me was how they made the center stack PIANO BLACK, i.e. a zillion finger prints on it!

Someone shut the tailgate when I was inside the truck and I felt the floorboards rattle and resonate in my feet when they did. CHEESY!

The bed and rear does not seem to have very tough sheet metal. I was banging on it with my fist and its much more flexible than the one on the new Silverado.

The doors, when you shut them, make a very cheap noise and they sound hollow.

to top it off. the thing is hideous. they oink at you when you walk by.

the whole toyota area was flooded with geezers and clueless people. and very few people were looking at the turdra. LOTS of people were looking at the new Chevy's and GMC's.

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It has been on the market a month! One month does not make a trend. Let's wait about 6 before getting to excited.

While I mostly agree with you evok. Could you imagine the squawking going on if the Silvi had $1500 on the hood 1 month after release?

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While I mostly agree with you evok. Could you imagine the squawking going on if the Silvi had $1500 on the hood 1 month after release?

I have a neat looking mailer in my hand from GM card that is offering me an additional $1500 to my card's rebate plus another $1000 if I trade in a vehicle 1999 or newer if I buy a Silverado, I have had this offer for a while so it ends today.

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I tried to steer a import loving friend looking for a truck towards the Silverado, we went for a test drive and just my luck the one we tried had rattles in the interior :-(.

i believe i could look past something so small. a dealership could fix that. there was a spot in my dad's 97 1500 on the floor that squeaked when you put your foot on it just so, besides look at the big picture... rattle or randomly plowing headlong into a ditch because a faulty suspension. the choice is obvious. unless you like cleaning out ditches.

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