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Originally Posted by dsmnick
This article is vague and fails to provide any detail on how they measure to determine it is making a profit (plus the lack of any actual figures). Factor in the $1.2 billion spent building the San Antonio plant and the Tundra won't be in the green for a long time. Are they even including development costs?
It sounds more like spin to justify buying market share with resale value-eroding incentives. That may be a harsh statement but $5000 incentives on any new vehicle is absurd, especially when the goal appears to be chasing market share. That is the kind of stuff that got the domestics in trouble in the past.
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Markup on vehicle is rediculous. Sell a vehicle below invoice and Toyota (or any other manufacturer for that matter) still makes money. Toyota makes more not having to pay BS union labor. You can't factor in the plant. It's not like that plant will be used to build ONLY Tundras. It'll be revamped to be able to produce other vehicles as well. Doesn't matter where they get the numbers....this was a stockholder release, and if I'm investing in Toyota, I'm damn happy they are still making money.
