Tundra Prices - Toyota Nation Forum : Toyota Car and Truck Forums

ARTSBEST · 08-14-2007, 08:23 AM

There are, according to insiders, MANY cash incentives being handed out to Toyota dealers to "move" Tundras. Incentives that are unbeknownst to we consumers. And don't forget that Toyota and the truck world make anywhere from $10K-$15K on some of these high priced units. Also take into consideration Toyota's $2K-$3K production labor advantage along with their yen-dollar currency advantage which some peg at about $3K per vehicle. So Toyota can go much LOWER on their prices on the Tundra if they so desire. After all, they netted $11B last year. GM LOST that much. Will Toyota engage in a fulls scale price war with GM? I doubt it but I still see LOWER prices for Tundra buyers in the near future in some way/shape/form.

engineer · 08-14-2007, 09:11 AM

First, the Tundra is made in San Antonio, TX and in Gibson County, IN, and the engine and transmission are made in the US as well . . . . .so the yen currency issue is not really an issue (or advantage) for the Tundra. The yen does help Toyota's bottom line ($900 million last quarter alone, iirc), just not with the Tundra.

Second, GM did not lose 11 billion last year, (excluding special items) GM actually made 2.2 billion in 2006. . . . . In 2005, GM lost 10.8 billion.

Lastly, to your point, Toyota will do whatever it takes to hit their 200k/year sales target for the new Tundra. If that means eating into some profit to buy marketshare with high incentives, then that's what they will do (and have been doing). This is not a case of the Tundra being a bad or inferior truck, but rather it being the "new kid on the block" and it still has much to prove with traditional truck buyers.

I see incentives staying high on these trucks for some time. Toyota has the cash to offer big incentives on these trucks, no doubt about that. They need a foothold in this competitive segment, and if that means lower profits for the first year, then that is what Toyota will do to reach 200k/year. They can not afford this truck to be seen as a failure, period.

ARTSBEST · 08-14-2007, 10:33 AM

I see incentives staying high on these trucks for some time. Toyota has the cash to offer big incentives on these trucks, no doubt about that. They need a foothold in this competitive segment, and if that means lower profits for the first year, then that is what Toyota will do to reach 200k/year. They can not afford this truck to be seen as a failure, period.
Agree 100%. Smart man you are. And remember NEVER underestimate the power of corporate ego. That's why the Tundra will see more/better incentives IMHO in the months to come. And I would LOVE to own an extended cab 4X4 Limited Tundra. Just too high a price for me though.

***mhadden*** · 08-14-2007, 04:23 PM

The incentives are coming down. Toyota is on par for their 200k. I think once (or if) they release a HD version, there won't need to be incentives...the truck sells itself. Gas prices are what's killing it, though. Hell, they are offering $2500 on 4Runners up here...they've never offered incentives on those!

ARTSBEST · 08-14-2007, 10:28 PM

I don't know about no incentives. I think when the new F-150/Ram emerges you're going to experience MORE not LESS competitive incentives to ward off these newly designed units. Hell even GM is offering $3K on their new 900 line of trucks. They vowed they were going to distance themselves from such business practices. Only to repeat their old ways, again. If GM has to engage in this incentives war mind set so will Toyota, IMHO.