Toyota scrambles to get the kinks out of Tundra's launch

Learning The Hard Way

Toyotascrambles to get the kinks out of Tundra's launch

http://www.autoweek.com/apps/pbcs.dll/article?AID=/20070416/FREE/70416001/1528

NEW YORK -- Three months into the launch of its redesigned Tundra, Toyota is scrambling to revamp its model mix and make a series of other fixes on the run.

Toyota executives admit they have made missteps in their first venture into the full-sized pickup fray.

"As we try to go from 5 percent share to 10 percent segment share, we are learning the hard way," Jim Farley, Toyota Division vice president of marketing, said at the New York auto show.

Toyota is selling more CrewMax units than it can supply. Demand for the top-dog 5.7-liter V-8 also is outstripping supply. And Toyota is cutting production of standard-cab models because it is selling fewer than expected.

But a lot has gone right since the Tundra's launch in February. The company sold 13,196 Tundras in March, 12 percent above sales of the old Tundra in March 2006. Based on availability and inventories, Toyota says that it's on the right track, and that the Tundra will be selling at its planned 200,000 annual pace by summer.

But in studying its miscalculations, Toyota is noticing some intriguing trends.

The extended-cab versions represent 40 percent of sales, as planned. But the CrewMax has proved more popular than expected, said Ernest Bastien, Toyota's vice president of vehicle operations. That presents a supply problem.

The production ramp-up calls for Toyota's Princeton, Ind., plant to build the CrewMax, while the new San Antonio plant gets its feet wet with the standard-cab and extended-cab versions. San Antonio won't build the CrewMax until August.

"We didn't come to the prizefight with all our tools," Bastien said.

And by engaging in the "bar stool debate" with its 5.7-liter V-8, Toyota has sparked more demand for that engine than expected.

"The 5.7 has been 70 to 80 percent of our mix, and we thought it would be 50 or 60 percent," Farley said. "The 4.7 (V-8) and V-6 are not as popular."


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Definately what Toyota dealers are seeing on the showroom floor.

Demand is exceeding supply of 5.7s and even worse on CrewMax.

Glad to see they are making the changes

Fan

^^^Very interesting article. I'm surprised that the CrewMax is gaining more popularity as Toyota only a limited amount of sales for that particular trim level. I guess this can bad or good, depending on how you see it. I'm not surprised about the 5.7ltr equiped models flying off, that thing is a beast! They should really bump up the power on the 4.7 to at least 300-320bhp because that's just out of date especially for a bigger truck. Not to say it's a bad engine but its seen its glory days. So does the article pin point from what you have observed?? I assume this article is talking about U.S. and not Canada? How is it in Canada? I know it not as big as market as the U.S. but just wondering.:thumbup:

I'm not sure why some of the items are of any surprise.

The regular cab is way overpriced compared to the competition. I recently saw an add in the local paper for a stripper v-6 2wd on sale for 19,500, that's still too high for the market.

Considering the 5.7L smokes their other motors in power and gets basically the SAME fuel economy for almost the same sticker price, why WOULDN'T you get the 5.7?

The only surprise to me on the list is the popularity of the CrewMax. The dodge version has not sold well, so Toyota was probably under the same impression I was under, we'll make em so we have em for people who need em, but we probably won't sell a lot of them because Dodge doesn't sell a lot of them.

I personally think Toyota's (and all mfg's) biggest hurdle for the rest of the summer, and for who knows how long is fuel prices. It's averaged an 8 cent increase here per week since february with no signs of stopping yet :(

I honestly don't think it will be long before a car (most likely the Camry?) will unseat the silverado and f-150 as the best selling vehicle. For that to happen I think fuel would have to stay at $3+ per gallong for at least 2 to 3 years.

People that drive and buy trucks don't give an ants piss towards fuel consumption. If they did no turbo diesel, or v8 would have ever existed to begin with.

People that drive and buy trucks don't give an ants piss towards fuel consumption. If they did no turbo diesel, or v8 would have ever existed to begin with.

Sorry, but I'm going to call TOTAL BS on that.

Search this board. Search the 05+ Tacoma board and the Tundra board. Go to ANY GM, Ford, or Dodge forum and type in fuel mileage. I then dare you to every TRY to tell me again fullsize truck owner's don't give a piss about fuel mileage.

:D

The regular cab is way overpriced compared to the competition. I recently saw an add in the local paper for a stripper v-6 2wd on sale for 19,500, that's still too high for the market.

You obviously havent priced out a similarly equipped Ford or GM truck. They all go for $20,000+.

^^^Very interesting article. I'm surprised that the CrewMax is gaining more popularity as Toyota only a limited amount of sales for that particular trim level. I guess this can bad or good, depending on how you see it. I'm not surprised about the 5.7ltr equiped models flying off, that thing is a beast! They should really bump up the power on the 4.7 to at least 300-320bhp because that's just out of date especially for a bigger truck. Not to say it's a bad engine but its seen its glory days. So does the article pin point from what you have observed?? I assume this article is talking about U.S. and not Canada? How is it in Canada? I know it not as big as market as the U.S. but just wondering.:thumbup:

Its the same story in Canada.

Fan

I'm not sure why some of the items are of any surprise.

The regular cab is way overpriced compared to the competition. I recently saw an add in the local paper for a stripper v-6 2wd on sale for 19,500, that's still too high for the market.

Considering the 5.7L smokes their other motors in power and gets basically the SAME fuel economy for almost the same sticker price, why WOULDN'T you get the 5.7?

The only surprise to me on the list is the popularity of the CrewMax. The dodge version has not sold well, so Toyota was probably under the same impression I was under, we'll make em so we have em for people who need em, but we probably won't sell a lot of them because Dodge doesn't sell a lot of them.

I personally think Toyota's (and all mfg's) biggest hurdle for the rest of the summer, and for who knows how long is fuel prices. It's averaged an 8 cent increase here per week since february with no signs of stopping yet :(

I honestly don't think it will be long before a car (most likely the Camry?) will unseat the silverado and f-150 as the best selling vehicle. For that to happen I think fuel would have to stay at $3+ per gallong for at least 2 to 3 years.

I'm with most of what you say, but there is enough of the price difference between to the 4.7 and 5.7 to make it attractive if you are not pulling heavy weight. Although the milage is the same, most people who love the 5.7s power, love to floor it, reducing its milage.

Of course I'd rather drive the 5.7 too.

Fan

I'm with most of what you say, but there is enough of the price difference between to the 4.7 and 5.7 to make it attractive if you are not pulling heavy weight. Although the milage is the same, most people who love the 5.7s power, love to floor it, reducing its milage.

Of course I'd rather drive the 5.7 too.

Fan

Yeah, I'd rather have the meatball sub too :lol:

Learning The Hard Way

Toyotascrambles to get the kinks out of Tundra's launch

http://www.autoweek.com/apps/pbcs.dll/article?AID=/20070416/FREE/70416001/1528

NEW YORK -- Three months into the launch of its redesigned Tundra, Toyota is scrambling to revamp its model mix and make a series of other fixes on the run.

Toyota executives admit they have made missteps in their first venture into the full-sized pickup fray.

"As we try to go from 5 percent share to 10 percent segment share, we are learning the hard way," Jim Farley, Toyota Division vice president of marketing, said at the New York auto show.

Toyota is selling more CrewMax units than it can supply. Demand for the top-dog 5.7-liter V-8 also is outstripping supply. And Toyota is cutting production of standard-cab models because it is selling fewer than expected.

But a lot has gone right since the Tundra's launch in February. The company sold 13,196 Tundras in March, 12 percent above sales of the old Tundra in March 2006. Based on availability and inventories, Toyota says that it's on the right track, and that the Tundra will be selling at its planned 200,000 annual pace by summer.

But in studying its miscalculations, Toyota is noticing some intriguing trends.

The extended-cab versions represent 40 percent of sales, as planned. But the CrewMax has proved more popular than expected, said Ernest Bastien, Toyota's vice president of vehicle operations. That presents a supply problem.

The production ramp-up calls for Toyota's Princeton, Ind., plant to build the CrewMax, while the new San Antonio plant gets its feet wet with the standard-cab and extended-cab versions. San Antonio won't build the CrewMax until August.

"We didn't come to the prizefight with all our tools," Bastien said.

And by engaging in the "bar stool debate" with its 5.7-liter V-8, Toyota has sparked more demand for that engine than expected.

"The 5.7 has been 70 to 80 percent of our mix, and we thought it would be 50 or 60 percent," Farley said. "The 4.7 (V-8) and V-6 are not as popular."


________________________________--

Definately what Toyota dealers are seeing on the showroom floor.

Demand is exceeding supply of 5.7s and even worse on CrewMax.

Glad to see they are making the changes

Fan


I drove a crewmax the other day in blue color.. all loaded....
Very solid. Very powerful. Awesome brakes. It is a well engineered machine. I saw GOD.

I liked its styling more than anything. :thumbup: Just beautiful flow and agressive look.

I drove a crewmax the other day in blue color.. all loaded....
Very solid. Very powerful. Awesome brakes. It is a well engineered machine. I saw GOD.

I liked its styling more than anything. :thumbup: Just beautiful flow and agressive look.

My crewmax ltd arrives soon.

fan

You obviously havent priced out a similarly equipped Ford or GM truck. They all go for $20,000+.
You'd be right. An F150 similarly equipped to what a base Tundra offers is only about a grand less than that same base Tundra, msrp tp msrp. But to be fair Ford, like GM, never expects people to actually pay that much for a base truck and instead rebates those base trucks down to 15k or so the minute they hit the lots.

To be fair I have always found this approach a curious tactic. (hey, here's an idea....why not just make the base msrp 16k or so to begin with) But the difference between Ford, GM, and Toyota is that Toyota actually thought there were a large volume of people who might pay 22k for an entry level, 2wd, V6 long bed Tundra. And that is what has worried me all along. Anybody who thinks they'll find 100k people a year willing to pay 22k for a base full-size pickup (oddballs like Nissans V8-only Titan not withstanding) is off their nut and so far gone from anything most people would consider reality they'll need to hail a cab to get back.

Even with the 3k in rebates the Tundra now carries it's still a 19k vehicle which is, unfortunately, still unrealistic for a base pickup, especially one from a relative upstart in a field where people don't generally seem to feel slighted by existing offerings. Fixing the product mix will certainly help, at least in the short term. But while the Crew Cab V8's are apparently doing well one is left wondering how long one promising model can carry the whole mix.

Long term Toyota still needs to address the poorly accepted styling and pricing issues. It might also prove beneficial if they didn't try to wade into the full size pickup market so slowly. They need a product mix at least as diverse as the big three have and they need right out of the starting gate.

People that drive and buy trucks don't give an ants piss towards fuel consumption. If they did no turbo diesel, or v8 would have ever existed to begin with.
I think you've got this backwards. Turbo Diesel V8's are largely popular, and are soon to make an appearance in half ton trucks, precisely because of the fuel economy they offer relative to what a similarly powerful gas engine might offer.

i personally think the crewmax looks the best and is probably the MOST practical, but i maybe overgeneralizing.

My crewmax ltd arrives soon.

fan

Are you f'in kidding me????? :clap:

O M G ...... U son of a $^%#% ....... I am so jealous....... What color did u order it in?
DETAILS?

i personally think the crewmax looks the best and is probably the MOST practical, but i maybe overgeneralizing.

PRACTICAL.... Correct...... :thumbup:

well if that's sarcasm i dont understand. If you've got a family or carpool or whatever that involves carrying people, but work in construction or other various jobs that require a truck, it is indeed the most practical.

I wont go into further detail. This is just my opinion, and just like you, i am entitled to my own.

People that drive and buy trucks don't give an ants piss towards fuel consumption. If they did no turbo diesel, or v8 would have ever existed to begin with.
WRONG... We got a new business use only truck on order and with the road miles we do, mileage is quite important.... No business wants to needlessly throw money down the drain..

And the V-8 is needed for an equipment trailer, that when loaded is 6000 - 8000 lbs..

Just like I thought; The 5.7 liter Tundra is flying off the shelf while the lesser Tundras with the 4.0 and the 4.7 liter are selling at a slower pace. I hope Toyota now turns its attention on the 4.7 liter engine. Hopefully it could be bored and stroked out to 5.0 to 5.2 liter and horspower jumps from the meager 271 to 320 to 330. The performance gap between the 4.7 and 5.7 is too great in my opinion.

You obviously havent priced out a similarly equipped Ford or GM truck. They all go for $20,000+.

No obviously you don't know what your talking about. One similarly equpied might have a sticker that is within 1K of the 19.5 that he's talking about. But when you consider dealer discounts exc, you can get them with that equpiment 24/7 for 15 or 16K, now if you want a manual transmition and just a radio, you can get them for 12-13K

i personally think the crewmax looks the best and is probably the MOST practical, but i maybe overgeneralizing.

That depends on if your using the bed, or the cab, the cab is great right there with the Mega cab, but the bed is a short shortie, which is fine if your main use is a pasenger car.