Can Tundra overcome Domestic loyalty?
02-27-06, 07:09 PM
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Can Tundra overcome Domestic loyalty?
Toyota hopes to double annual sales with new Tundra
Traditionally cautious Toyota is taking a gamble on the redesigned 2007 Tundra.
Toyota's new assembly plant in San Antonio will double Tundra production, so the automaker must find lots more buyers for its full-sized pickup.
The problem: The current Tundra is not luring large numbers of Big 3 truck loyalists out of their pickups.
Toyota has been surprised by its inability to win over consumers who already own import-brand cars, says Ernest Bastien, vice president of Toyota's vehicle operations group. In 2005, Toyota sold Tundras to just 8.4 percent of full-sized pickup buyers who already had an import-brand vehicle in their garage, he says.
Toyota also has come up short in attracting first-time buyers of full-sized pickups. "That's where we've missed our greatest opportunities for growth," Bastien says.
Yet Toyota executives are confident they can add 150,000 Tundra buyers a year.
The redesigned truck is due in early 2007. With a 5.7-liter engine, towing capacity of 10,000 pounds and a slew of new model variants, they say the redesigned Tundra should overcome the shortcomings that have hampered its predecessors.
Few domestic trades
Toyota sold 126,529 Tundras last year, a record for the truck. But a surprisingly small number of those buyers were conquested from the Big 3.
Of those who bought a Tundra, just 8 percent traded in a Ford F-150, and fewer than 6 percent left a Chevrolet Silverado, according to Toyota data. By contrast, 30 percent of Tundra purchasers traded in another Tundra or a compact Tacoma pickup. Many more customers were import-brand loyalists who would not buy a big truck unless Toyota made it.
"We've had some success in appealing to traditional domestic owners," says Bastien. "But it has been limited because body and engine configurations were expanding faster than we were able to introduce them."
In the case of the popular four-door configuration, Toyota was late to the party and missed a big opportunity to lure domestic truck owners when it finally arrived in late 2003.
Toyota found that more than half the customers who rejected the Tundra said it did not offer the configuration they needed or that the dealer did not have the right model in inventory.
Another major reason for rejection was the Tundra's low towing capacity. The new model, with more configurations and higher towing capacity, will address both those concerns, Bastien says.
Toyota also loses some rural customers because it lacks a nearby dealership. Toyota has about 1,200 dealerships, compared with 3,800 for Ford, 4,100 for Chevrolet and 2,900 for Dodge. Toyota is adding rural satellite dealerships to appeal to farmers and ranchers. But that plan is expected to add a couple of dozen stores at most.
Then there's the matter of overcoming generations of brand loyalty to Ford, Chevrolet and Dodge, observes Leonard Northcutt, who owns Toyota and GM dealerships in Enid, Okla.
"There is a large cultural difference between Toyota and GM customers," Northcutt says. His Tundra sales are predominantly to Toyota loyalists.
Toyota builds the Tundra in Indiana and Texas. But, Northcutt says, "Buy American" sympathies are less important than product attributes.
More than half of domestic truck buyers looked only at replacing their existing truck with the same nameplate, according to the 2005 New Vehicle Customer Study by automotive consulting firm Maritz Research. About 78 percent disposed of a domestic vehicle when buying a domestic-brand full-sized truck.
On the other hand, Toyota is encouraged by Tundra owners' loyalty. Since the launch of the four-dour Double Cab, 43 percent of Tundra buyers were Tundra owners. For a vehicle with a short sales history, Tundra is competitive with the Ford F-150 at 54 percent loyalty and Chevrolet Silverado at 46 percent, according to Toyota data.
The numbers game
John Wolkonowicz, senior market analyst with Global Insight in Lexington, Mass., doesn't think the new Tundra will win over Big 3 loyalists. He sees the Tundra expanding the overall full-sized truck market, rather than securing a larger piece of the same-sized pie.
Wolkonowicz says shoppers born between 1978 and 1989 love pickups, and there are plenty of white-collar folks with horse trailers and boats who have been waiting for a larger Tundra to arrive. "There is no reason for that truck not to be a success. But customers are going to come from different places than (Toyota) might expect," Wolkonowicz adds.
The huge market for pickups is working in Toyota's favor, says Jim Hossack, an analyst with AutoPacific in Tustin, Calif. "The full-sized half-ton truck universe is 2 million pieces (per year), so Toyota going from 100,000 to 250,000 units is doable," Hossack notes.
"Big 3 truck owners have had a lot of problems, whether it's with GM's engines and transmissions, Ford's Triton with the spark plugs that pop out, or general disenchantment with Dodge quality," says Hossack, who owns two GMC pickups with recurring glitches.
"The Big 3 have given Toyota an opening with their less-than-ideal quality."
Bradford Wernle contributed to this report
Source: http://www.autoweek.com/apps/pbcs.dl.../60227002/1041
Traditionally cautious Toyota is taking a gamble on the redesigned 2007 Tundra.
Toyota's new assembly plant in San Antonio will double Tundra production, so the automaker must find lots more buyers for its full-sized pickup.
The problem: The current Tundra is not luring large numbers of Big 3 truck loyalists out of their pickups.
Toyota has been surprised by its inability to win over consumers who already own import-brand cars, says Ernest Bastien, vice president of Toyota's vehicle operations group. In 2005, Toyota sold Tundras to just 8.4 percent of full-sized pickup buyers who already had an import-brand vehicle in their garage, he says.
Toyota also has come up short in attracting first-time buyers of full-sized pickups. "That's where we've missed our greatest opportunities for growth," Bastien says.
Yet Toyota executives are confident they can add 150,000 Tundra buyers a year.
The redesigned truck is due in early 2007. With a 5.7-liter engine, towing capacity of 10,000 pounds and a slew of new model variants, they say the redesigned Tundra should overcome the shortcomings that have hampered its predecessors.
Few domestic trades
Toyota sold 126,529 Tundras last year, a record for the truck. But a surprisingly small number of those buyers were conquested from the Big 3.
Of those who bought a Tundra, just 8 percent traded in a Ford F-150, and fewer than 6 percent left a Chevrolet Silverado, according to Toyota data. By contrast, 30 percent of Tundra purchasers traded in another Tundra or a compact Tacoma pickup. Many more customers were import-brand loyalists who would not buy a big truck unless Toyota made it.
"We've had some success in appealing to traditional domestic owners," says Bastien. "But it has been limited because body and engine configurations were expanding faster than we were able to introduce them."
In the case of the popular four-door configuration, Toyota was late to the party and missed a big opportunity to lure domestic truck owners when it finally arrived in late 2003.
Toyota found that more than half the customers who rejected the Tundra said it did not offer the configuration they needed or that the dealer did not have the right model in inventory.
Another major reason for rejection was the Tundra's low towing capacity. The new model, with more configurations and higher towing capacity, will address both those concerns, Bastien says.
Toyota also loses some rural customers because it lacks a nearby dealership. Toyota has about 1,200 dealerships, compared with 3,800 for Ford, 4,100 for Chevrolet and 2,900 for Dodge. Toyota is adding rural satellite dealerships to appeal to farmers and ranchers. But that plan is expected to add a couple of dozen stores at most.
Then there's the matter of overcoming generations of brand loyalty to Ford, Chevrolet and Dodge, observes Leonard Northcutt, who owns Toyota and GM dealerships in Enid, Okla.
"There is a large cultural difference between Toyota and GM customers," Northcutt says. His Tundra sales are predominantly to Toyota loyalists.
Toyota builds the Tundra in Indiana and Texas. But, Northcutt says, "Buy American" sympathies are less important than product attributes.
More than half of domestic truck buyers looked only at replacing their existing truck with the same nameplate, according to the 2005 New Vehicle Customer Study by automotive consulting firm Maritz Research. About 78 percent disposed of a domestic vehicle when buying a domestic-brand full-sized truck.
On the other hand, Toyota is encouraged by Tundra owners' loyalty. Since the launch of the four-dour Double Cab, 43 percent of Tundra buyers were Tundra owners. For a vehicle with a short sales history, Tundra is competitive with the Ford F-150 at 54 percent loyalty and Chevrolet Silverado at 46 percent, according to Toyota data.
The numbers game
John Wolkonowicz, senior market analyst with Global Insight in Lexington, Mass., doesn't think the new Tundra will win over Big 3 loyalists. He sees the Tundra expanding the overall full-sized truck market, rather than securing a larger piece of the same-sized pie.
Wolkonowicz says shoppers born between 1978 and 1989 love pickups, and there are plenty of white-collar folks with horse trailers and boats who have been waiting for a larger Tundra to arrive. "There is no reason for that truck not to be a success. But customers are going to come from different places than (Toyota) might expect," Wolkonowicz adds.
The huge market for pickups is working in Toyota's favor, says Jim Hossack, an analyst with AutoPacific in Tustin, Calif. "The full-sized half-ton truck universe is 2 million pieces (per year), so Toyota going from 100,000 to 250,000 units is doable," Hossack notes.
"Big 3 truck owners have had a lot of problems, whether it's with GM's engines and transmissions, Ford's Triton with the spark plugs that pop out, or general disenchantment with Dodge quality," says Hossack, who owns two GMC pickups with recurring glitches.
"The Big 3 have given Toyota an opening with their less-than-ideal quality."
Bradford Wernle contributed to this report
Source: http://www.autoweek.com/apps/pbcs.dl.../60227002/1041
10-15-06, 03:38 PM
#2
Article
PickUp Makers Shoot it Out for Bragging Rights & Sales in Texas
Posted 10/12/2006 9:13 PM ET E-mail | Save | Print | Reprints & Permissions | Subscribe to stories like this Subscribe to stories like this
Ed Peper, Chevrolet general manager, left, and John Larson, GMC general manager, appear to brand a map of Texas with their logos as they introduce the 2007 Chevy Silverado Heavy Duty truck at the Texas state fair grounds.
Enlarge By Tony Guitierrez, AP
Ed Peper, Chevrolet general manager, left, and John Larson, GMC general manager, appear to brand a map of Texas with their logos as they introduce the 2007 Chevy Silverado Heavy Duty truck at the Texas state fair grounds.
By Sharon Silke Carty, USA TODAY
SAN ANTONIO — Anywhere else, Joy Meadows would seem out of place.
The 31-year-old law student at St. Mary's University here hauls herself around south Texas in a shiny black 3/4-ton Ford F-150 pickup. She's been driving Ford trucks since she was 18 and considers herself unusual not because she drives a pickup, but because the pickup she drives is so big.
"They say everything is bigger in Texas. Maybe I'm evidence of that," says Meadows of her truck, which has a sticker plastered to the back window proclaiming "Real Women Drive Trucks."
She's not sure what drew her to a truck in the first place. It wasn't need. She uses the flatbed only once or twice a year to help friends move. And it wasn't fuel economy. The recent run-up in gas prices had her paying $60 to fill the tank. She doesn't tow things with it or fill it up with bales of hay. In fact, Meadows says, she's a city girl who has lived most of her life within the Dallas city limits.
So why a pickup? "I was born and raised here in Texas," she says with a laugh. "I just like them."
And that's why Texas has become such a critical pickup market for automakers. Although they make up only 8% of the U.S. population, Texans drive 10% of the nation's pickups, according to registration data from Experian. More than 27% of vehicles registered in Texas are pickups, compared with 20% for the rest of the nation, Experian says.
In Texas, people drive pickups often enough that they've just become part of the state's style, says Marsha Shields, dealer principal for Red McCombs Ford and Toyota in San Antonio. "It's Texas. It's kind of a cultural thing."
That kind of thinking has made Texas a battleground for truck makers. And now the fight for Texas pickup buyers is about to get more interesting. There's a new gunslinger in town.
For a long time, the battle for dominance in the Lone Star State's pickup market has been between Ford and Chevrolet. Both have larger shares of the market in Texas than in the rest of the country. And that's important for their parent companies, Ford Motor and General Motors, because trucks are among their most profitable vehicles.
But Toyota, the Japanese behemoth that has been challenging U.S. automakers even on their home turf, is poised to open a plant here next month. And that means the whole pickup dynamic could change.
Toyota has made inroads in otherwise strongly patriotic parts of the country by opening plants in those areas and declaring itself American. And Toyota is marketing the new version of its Tundra pickup, which will be built in the plant here, as being as tough and rugged as its American counterparts.
The company that has the most to lose if Toyota makes inroads into the Texas truck market is Ford, which sells one out of every six of its F-Series pickups here. "We know there is a lot of competition out there trying to beat Ford," says Al Giombetti, president of Ford and Lincoln Mercury. "We will do whatever it takes to remain America's truck leader."
'Ground zero' for truck sales
The pickup war, which has been heating up since 2003 when Toyota announced plans to build the truck plant, really plays out 300 miles north of here in Dallas at the State Fair of Texas. It's an annual fall extravaganza that features deep-fried Snickers bars, a giant Ferris wheel and an 800-pound butter sculpture of Marilyn Monroe.
Each year, more than 3 million people attend the state fair, which runs from the end of September through October. And state fair representatives say about 27% of new car buyers have been to the fair within the past year. That makes it the perfect spot to hawk a new truck model.
So along with pig shows, country music and quilt displays, the State Fair of Texas also has a mini auto show. This year, for the first time, GM held the world debut of a vehicle at a state fair, showing off the heavy-duty versions of the Chevy Silverado and GMC Sierra pickups. Ford unveiled its super-duty pickup in a flashy display that involved hoisting an F-350 carrying Mark Fields, the automaker's president of the Americas, 75 feet in the air with a crane and then softly depositing him in front of a crowd of journalists, Ford dealers and pickup owners.
"This is ground zero for the pickup market," Fields said.
That's why Toyota is trying to make a splash here, as well. "The state fair is a true icon of Texas, and Texas is the epicenter of the truck market," says Ernest Bastien, vice president of vehicle operations for Toyota Motor Sales.
Toyota's down-home outdoor stand, carpeted with wood chips and lined with bales of hay, plays up to the automaker's new status as a Texan. Yellow and black signs proclaim "The New Toyota Tundra: Born in Texas, Built By Texans."
That kind of advertising likely plays well in Texas, where people wear shirts made out of the state flag. Where Texans talk about how long they've lived in the state not in years but in generations. And where enterprising business folk know that slapping the word Texas onto a business gives it more appeal. Like Texas Tans. Texas Tire. Or even Texas Shredder Parts.
Throughout Texas, truck drivers characterize themselves as belonging to Ford families, Dodge families, Chevy families, as if the brand of pickup defines something about the character of their lineage. "Winning over full-size truck buyers won't be easy, because all of them have strong loyalties," Bastien says. "These are people who wouldn't normally consider a Toyota."
So the battle to be the most Texan truck in Texas is underway.
In San Antonio, the battle may already be over. Locals already view Toyota as a hometown company, even before it has opened. The Toyota plant is one of the few manufacturing sites near a city that relies heavily on tourism and the service industry to fuel its economy. Toyota received 110,000 applications for 2,000 jobs that pay up to $25 an hour.
Even Meadows, who says she's driven Fords all her life because that's what the rest of her family drives, says she'd consider buying a Toyota down the line: "I just think it's important to support the local economy."
"I think it resonates with customers when they see plants being built in the U.S.," says Steve Cavender, owner of Cavender Toyota in San Antonio. He just added 10 large service bays to his dealership on the expectation that sales will take off once the new Tundra hits the market.
"Our Tundra volume is going to triple," he says. "It's like adding a new franchise."
No matter how important the Texas market, automakers still must sell their pickups nationwide. And Toyota, GM and Ford all are ready to fight it out at that level, too.
Toyota's national ads for Tundra, which won't play up where the truck is built, will target what the automaker calls "true truckers." Ads will be placed with NASCAR, the National Football League and professional fishing tournaments.
"We need to reach truck buyers who previously never considered a Toyota product," says Jim Lentz, vice president of Toyota Motor Sales USA. "This will be particularly important in America's heartland, where Toyota has not penetrated the market as strongly as other regions and where trucks are an integral tool in the daily lives of many."
Who's more American?
The domestic automakers, never shy in playing up their red, white and blue roots, are hyping that angle even more. GM's new Chevy Silverado commercials feature John Mellencamp singing Our Country while images from 50 years of American history flash by, including Rosa Parks, flooded New Orleans, and the light memorial after the Sept. 11 World Trade Center attacks. It ends with a shot of a young person wearing a cowboy hat as a narrator says: "This is our country. This is our truck."
"It's a very powerful campaign that strikes an emotional bond with our customers," says Ed Peper, general manager of the Chevrolet brand. "It's not a call to patriotism. It's a reminder of how great this country is."
For its commercials, Ford tapped country singer Toby Keith, who wrote the song Courtesy of the Red, White & Blue (The Angry American) after the Sept. 11 attacks, promising unnamed enemies that "we'll put a boot in your (butt)."
Keith says he won't sponsor a product unless it's something he actually uses, and his family has been driving Fords for four generations. As a teenager, he tried to rebel by buying a black-and-white Chevy Silverado. But he quickly came back to Ford.
Buying a truck, he says, is an act of patriotism. "It's our country. Anything that will help the progress of our country, you should do it. Anything you can."
Outside of San Antonio, Toyota may find it harder to persuade customers to abandon their loyalty to American brands, says Sam Pack, owner of three Ford dealerships in the Dallas/Fort Worth area.
Trucks are what the American automakers do best, Pack says, so if drivers aren't dissatisfied, they won't have any reason to change.
"Much of (Japanese automakers') success with cars came because the domestic automakers took their focus off the car market," says Pack. "Toyota will find it much more difficult to penetrate the truck market than it was for the car market."
Posted 10/12/2006 9:13 PM ET E-mail | Save | Print | Reprints & Permissions | Subscribe to stories like this Subscribe to stories like this
Ed Peper, Chevrolet general manager, left, and John Larson, GMC general manager, appear to brand a map of Texas with their logos as they introduce the 2007 Chevy Silverado Heavy Duty truck at the Texas state fair grounds.
Enlarge By Tony Guitierrez, AP
Ed Peper, Chevrolet general manager, left, and John Larson, GMC general manager, appear to brand a map of Texas with their logos as they introduce the 2007 Chevy Silverado Heavy Duty truck at the Texas state fair grounds.
By Sharon Silke Carty, USA TODAY
SAN ANTONIO — Anywhere else, Joy Meadows would seem out of place.
The 31-year-old law student at St. Mary's University here hauls herself around south Texas in a shiny black 3/4-ton Ford F-150 pickup. She's been driving Ford trucks since she was 18 and considers herself unusual not because she drives a pickup, but because the pickup she drives is so big.
"They say everything is bigger in Texas. Maybe I'm evidence of that," says Meadows of her truck, which has a sticker plastered to the back window proclaiming "Real Women Drive Trucks."
She's not sure what drew her to a truck in the first place. It wasn't need. She uses the flatbed only once or twice a year to help friends move. And it wasn't fuel economy. The recent run-up in gas prices had her paying $60 to fill the tank. She doesn't tow things with it or fill it up with bales of hay. In fact, Meadows says, she's a city girl who has lived most of her life within the Dallas city limits.
So why a pickup? "I was born and raised here in Texas," she says with a laugh. "I just like them."
And that's why Texas has become such a critical pickup market for automakers. Although they make up only 8% of the U.S. population, Texans drive 10% of the nation's pickups, according to registration data from Experian. More than 27% of vehicles registered in Texas are pickups, compared with 20% for the rest of the nation, Experian says.
In Texas, people drive pickups often enough that they've just become part of the state's style, says Marsha Shields, dealer principal for Red McCombs Ford and Toyota in San Antonio. "It's Texas. It's kind of a cultural thing."
That kind of thinking has made Texas a battleground for truck makers. And now the fight for Texas pickup buyers is about to get more interesting. There's a new gunslinger in town.
For a long time, the battle for dominance in the Lone Star State's pickup market has been between Ford and Chevrolet. Both have larger shares of the market in Texas than in the rest of the country. And that's important for their parent companies, Ford Motor and General Motors, because trucks are among their most profitable vehicles.
But Toyota, the Japanese behemoth that has been challenging U.S. automakers even on their home turf, is poised to open a plant here next month. And that means the whole pickup dynamic could change.
Toyota has made inroads in otherwise strongly patriotic parts of the country by opening plants in those areas and declaring itself American. And Toyota is marketing the new version of its Tundra pickup, which will be built in the plant here, as being as tough and rugged as its American counterparts.
The company that has the most to lose if Toyota makes inroads into the Texas truck market is Ford, which sells one out of every six of its F-Series pickups here. "We know there is a lot of competition out there trying to beat Ford," says Al Giombetti, president of Ford and Lincoln Mercury. "We will do whatever it takes to remain America's truck leader."
'Ground zero' for truck sales
The pickup war, which has been heating up since 2003 when Toyota announced plans to build the truck plant, really plays out 300 miles north of here in Dallas at the State Fair of Texas. It's an annual fall extravaganza that features deep-fried Snickers bars, a giant Ferris wheel and an 800-pound butter sculpture of Marilyn Monroe.
Each year, more than 3 million people attend the state fair, which runs from the end of September through October. And state fair representatives say about 27% of new car buyers have been to the fair within the past year. That makes it the perfect spot to hawk a new truck model.
So along with pig shows, country music and quilt displays, the State Fair of Texas also has a mini auto show. This year, for the first time, GM held the world debut of a vehicle at a state fair, showing off the heavy-duty versions of the Chevy Silverado and GMC Sierra pickups. Ford unveiled its super-duty pickup in a flashy display that involved hoisting an F-350 carrying Mark Fields, the automaker's president of the Americas, 75 feet in the air with a crane and then softly depositing him in front of a crowd of journalists, Ford dealers and pickup owners.
"This is ground zero for the pickup market," Fields said.
That's why Toyota is trying to make a splash here, as well. "The state fair is a true icon of Texas, and Texas is the epicenter of the truck market," says Ernest Bastien, vice president of vehicle operations for Toyota Motor Sales.
Toyota's down-home outdoor stand, carpeted with wood chips and lined with bales of hay, plays up to the automaker's new status as a Texan. Yellow and black signs proclaim "The New Toyota Tundra: Born in Texas, Built By Texans."
That kind of advertising likely plays well in Texas, where people wear shirts made out of the state flag. Where Texans talk about how long they've lived in the state not in years but in generations. And where enterprising business folk know that slapping the word Texas onto a business gives it more appeal. Like Texas Tans. Texas Tire. Or even Texas Shredder Parts.
Throughout Texas, truck drivers characterize themselves as belonging to Ford families, Dodge families, Chevy families, as if the brand of pickup defines something about the character of their lineage. "Winning over full-size truck buyers won't be easy, because all of them have strong loyalties," Bastien says. "These are people who wouldn't normally consider a Toyota."
So the battle to be the most Texan truck in Texas is underway.
In San Antonio, the battle may already be over. Locals already view Toyota as a hometown company, even before it has opened. The Toyota plant is one of the few manufacturing sites near a city that relies heavily on tourism and the service industry to fuel its economy. Toyota received 110,000 applications for 2,000 jobs that pay up to $25 an hour.
Even Meadows, who says she's driven Fords all her life because that's what the rest of her family drives, says she'd consider buying a Toyota down the line: "I just think it's important to support the local economy."
"I think it resonates with customers when they see plants being built in the U.S.," says Steve Cavender, owner of Cavender Toyota in San Antonio. He just added 10 large service bays to his dealership on the expectation that sales will take off once the new Tundra hits the market.
"Our Tundra volume is going to triple," he says. "It's like adding a new franchise."
No matter how important the Texas market, automakers still must sell their pickups nationwide. And Toyota, GM and Ford all are ready to fight it out at that level, too.
Toyota's national ads for Tundra, which won't play up where the truck is built, will target what the automaker calls "true truckers." Ads will be placed with NASCAR, the National Football League and professional fishing tournaments.
"We need to reach truck buyers who previously never considered a Toyota product," says Jim Lentz, vice president of Toyota Motor Sales USA. "This will be particularly important in America's heartland, where Toyota has not penetrated the market as strongly as other regions and where trucks are an integral tool in the daily lives of many."
Who's more American?
The domestic automakers, never shy in playing up their red, white and blue roots, are hyping that angle even more. GM's new Chevy Silverado commercials feature John Mellencamp singing Our Country while images from 50 years of American history flash by, including Rosa Parks, flooded New Orleans, and the light memorial after the Sept. 11 World Trade Center attacks. It ends with a shot of a young person wearing a cowboy hat as a narrator says: "This is our country. This is our truck."
"It's a very powerful campaign that strikes an emotional bond with our customers," says Ed Peper, general manager of the Chevrolet brand. "It's not a call to patriotism. It's a reminder of how great this country is."
For its commercials, Ford tapped country singer Toby Keith, who wrote the song Courtesy of the Red, White & Blue (The Angry American) after the Sept. 11 attacks, promising unnamed enemies that "we'll put a boot in your (butt)."
Keith says he won't sponsor a product unless it's something he actually uses, and his family has been driving Fords for four generations. As a teenager, he tried to rebel by buying a black-and-white Chevy Silverado. But he quickly came back to Ford.
Buying a truck, he says, is an act of patriotism. "It's our country. Anything that will help the progress of our country, you should do it. Anything you can."
Outside of San Antonio, Toyota may find it harder to persuade customers to abandon their loyalty to American brands, says Sam Pack, owner of three Ford dealerships in the Dallas/Fort Worth area.
Trucks are what the American automakers do best, Pack says, so if drivers aren't dissatisfied, they won't have any reason to change.
"Much of (Japanese automakers') success with cars came because the domestic automakers took their focus off the car market," says Pack. "Toyota will find it much more difficult to penetrate the truck market than it was for the car market."
10-15-06, 05:38 PM
#3
Lexus Fanatic
The main problem is that Toyota trucks, unlike the Nissan Titan, were never large enough to truly compete with domestic full-size pick-ups. Starting in 1994, and stubbornly continuing until this year, Toyota tried to market " full-size " pickups that were really mid-to-three-quarter size trucks, like the Dodge Dakota.....and then wondered why they didn't compete. They simply did not understand the American truck market........even after extensive consultations with American Toyota officials. Now, finally, Toyota appears to have a TRUE full-size truck, like the Titan.....and NOW, finally, we will see if it can compete. Unfortunately, Toyota wasted over 12 years resisting market pressure to introduce true full-sizers.....and it has cost them.
10-16-06, 06:03 AM
#5
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Toyota has been surprised by its inability to win over consumers who already own import-brand cars, says Ernest Bastien, vice president of Toyota's vehicle operations group.
They just need to hire the right country singer to do commercials for them.
They just need to hire the right country singer to do commercials for them.
10-16-06, 06:36 AM
#6
Lexus Fanatic
And someone who can do La Bamba music.
( Don't forget, a lot of pickups are used on construction sites )
10-16-06, 06:52 AM
#7
Super Moderator
Down here, I think Toyota will make some good inroads with their trucks.
In Mexico, a lot of small-sized trucks (affordability reasons) were legally nationalized at the border and brought in. Big-sized domestics never took off since prices are way higher down here than in the U.S.
More and more, I am starting to see new Nissan and Toyota trucks on the roads. Honda brought its Ridgeline down here, but I don't see that as in the same class.
In Mexico, a lot of small-sized trucks (affordability reasons) were legally nationalized at the border and brought in. Big-sized domestics never took off since prices are way higher down here than in the U.S.
More and more, I am starting to see new Nissan and Toyota trucks on the roads. Honda brought its Ridgeline down here, but I don't see that as in the same class.
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10-16-06, 08:20 AM
#8
Lexus Fanatic
Down here, I think Toyota will make some good inroads with their trucks.
In Mexico, a lot of small-sized trucks (affordability reasons) were legally nationalized at the border and brought in. Big-sized domestics never took off since prices are way higher down here than in the U.S.
More and more, I am starting to see new Nissan and Toyota trucks on the roads. Honda brought its Ridgeline down here, but I don't see that as in the same class.
In Mexico, a lot of small-sized trucks (affordability reasons) were legally nationalized at the border and brought in. Big-sized domestics never took off since prices are way higher down here than in the U.S.
More and more, I am starting to see new Nissan and Toyota trucks on the roads. Honda brought its Ridgeline down here, but I don't see that as in the same class.
10-16-06, 09:30 AM
#9
If I was in the market for a full size truck, I'd get the F-150. The interior is so much improved, almost a car-like ride, and much cheaper and more capable.
A friend of mine has one and she loves it. No trouble at all.......so far
10-16-06, 09:33 AM
#10
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I think the new Tundra is going to be a homerun, right out of the ballpark, however. They seem to have done everything right this time around. I doubt you'll draw in huge quantities of domestic truck buyers (they're a different breed...), but there will be enough of everyone else to ensure that it's a success. Well, let's see where gas prices go after the elections before we jump to too many conclusions.
10-16-06, 09:36 AM
#11
Lexus Fanatic
GS3tek hit the nail on the head...this is one of the main reasons why it has been so hard for the Japanese manufacturers to make significant inroads into the American full-size pickup market. Their owners are fanatically loyal....perhaps more so than any other vehicle segment. Toyota's refusal to build TRUE full size trucks from 1994 until this year did not help matters any either....but to be fair, the Tundra has been more reliable than any American-nameplate truck ( including the F-150 ) and has a smoother, more refined powertrain. The Nissan Titan can compete with domestics in size and power but has not been reliable.
10-16-06, 09:59 AM
#12
The main problem is that Toyota trucks, unlike the Nissan Titan, were never large enough to truly compete with domestic full-size pick-ups. Starting in 1994, and stubbornly continuing until this year, Toyota tried to market " full-size " pickups that were really mid-to-three-quarter size trucks, like the Dodge Dakota.....and then wondered why they didn't compete. They simply did not understand the American truck market........even after extensive consultations with American Toyota officials. Now, finally, Toyota appears to have a TRUE full-size truck, like the Titan.....and NOW, finally, we will see if it can compete. Unfortunately, Toyota wasted over 12 years resisting market pressure to introduce true full-sizers.....and it has cost them.
It did not costs them a thing. Come on.......
The Tundra has been a huge success for Toyota in sales volume and in profits which lead to the developement of the new generation coming out later this year. Didn't compete? Did you expect then to take over the market in 6 years? Not only did it compete but won several comparions along the way. The domestics and Dodge stepped up and so is Toyota again. It goes back and forth.
September
Sales of Toyota's Tundra pickup are up 74 percent to 12,609 units, compared to Ford F-Series, with 70,822 , and the Chevrolet Silverado, at 51,964.
yes, still far short but still a significant market share and I am sure the new Tundra will make further inroads in this segment-everyone's opinions aside. Remember, with all of the rambling going on here about what Toyota could do better-they still do automotive better than anyone else so that should tell us about our opinion. Good thing we do no run the companies.
Also, I hope that Toyota does not stoop down the level of GM/Ford by trying to make Americans feel guilty for purchasing another brand such as Nissan or Toyota. For them to use the deaths of thousands to sell their trucks is absolutely low to me and in fact so low that Americans should be appalled at their new advertising to the degree that fists should be flying in the executives direction.
Buy a Chevy because of 09/11 and New Orleans is trash advertising at best and an insult to the intelligence of Americans. My opinon of course (see above)
Last edited by Pearlpower; 10-16-06 at 10:07 AM.
10-16-06, 10:16 AM
#13
Lexus Fanatic
It did not costs them a thing. Come on.......
The Tundra has bee a huge success for Toyota in sales volume and in profits which lead to the developement of the new generation coming out later this year.
September
Sales of Toyota's Tundra pickup are up 74 percent to 12,609 units, compared to Ford F-Series, with 70,822 , and the Chevrolet Silverado, at 51,964.
yes, still far short but still a significant market share and I am sure the new Tundra will make further inroads in this segment-everyone's opinions aside. Remember, with all of the rambling going on here about what Toyota could do better-they still do automotive better than anyone else so that should tell us about our opinion. Good thing we do no run the companies.
Also, I hope that Toyota does not stoop down the level of GM/Ford by trying to make Americans feel guilty for purchasing another brand such as Nissan or Toyota. For them to use the deaths of thousands to sell their trucks is absolutely low to me and in fact so low that Americans should be appalled at their new advertising to the degree that fists should be flying in the executives direction.
Buy a Chevy because of 09/11 and New Orleans is trash advertising at best and an insult to the intelligence of Americans.
The Tundra has bee a huge success for Toyota in sales volume and in profits which lead to the developement of the new generation coming out later this year.
September
Sales of Toyota's Tundra pickup are up 74 percent to 12,609 units, compared to Ford F-Series, with 70,822 , and the Chevrolet Silverado, at 51,964.
yes, still far short but still a significant market share and I am sure the new Tundra will make further inroads in this segment-everyone's opinions aside. Remember, with all of the rambling going on here about what Toyota could do better-they still do automotive better than anyone else so that should tell us about our opinion. Good thing we do no run the companies.
Also, I hope that Toyota does not stoop down the level of GM/Ford by trying to make Americans feel guilty for purchasing another brand such as Nissan or Toyota. For them to use the deaths of thousands to sell their trucks is absolutely low to me and in fact so low that Americans should be appalled at their new advertising to the degree that fists should be flying in the executives direction.
Buy a Chevy because of 09/11 and New Orleans is trash advertising at best and an insult to the intelligence of Americans.
So...I'm sorry to have to disagree with you, but the truth is that Toyota marketing blew it with both the T-series and the first Tundra.
Now, I'm not saying that the 3/4-size Toyota trucks were a flop....they did sell enough to be profitable in the market, but they only made minor dents in traditional domestic truck sales instead of significant ones.
But hey......better late than never.
Last edited by mmarshall; 10-16-06 at 10:22 AM.
10-16-06, 10:22 AM
#14
Lexus Fanatic
It did not costs them a thing. Come on.......
The Tundra has bee a huge success for Toyota in sales volume and in profits which lead to the developement of the new generation coming out later this year.
September
Sales of Toyota's Tundra pickup are up 74 percent to 12,609 units, compared to Ford F-Series, with 70,822 , and the Chevrolet Silverado, at 51,964.
yes, still far short but still a significant market share and I am sure the new Tundra will make further inroads in this segment-everyone's opinions aside. Remember, with all of the rambling going on here about what Toyota could do better-they still do automotive better than anyone else so that should tell us about our opinion. Good thing we do no run the companies.
Also, I hope that Toyota does not stoop down the level of GM/Ford by trying to make Americans feel guilty for purchasing another brand such as Nissan or Toyota. For them to use the deaths of thousands to sell their trucks is absolutely low to me and in fact so low that Americans should be appalled at their new advertising to the degree that fists should be flying in the executives direction.
Buy a Chevy because of 09/11 and New Orleans is trash advertising at best and an insult to the intelligence of Americans.
The Tundra has bee a huge success for Toyota in sales volume and in profits which lead to the developement of the new generation coming out later this year.
September
Sales of Toyota's Tundra pickup are up 74 percent to 12,609 units, compared to Ford F-Series, with 70,822 , and the Chevrolet Silverado, at 51,964.
yes, still far short but still a significant market share and I am sure the new Tundra will make further inroads in this segment-everyone's opinions aside. Remember, with all of the rambling going on here about what Toyota could do better-they still do automotive better than anyone else so that should tell us about our opinion. Good thing we do no run the companies.
Also, I hope that Toyota does not stoop down the level of GM/Ford by trying to make Americans feel guilty for purchasing another brand such as Nissan or Toyota. For them to use the deaths of thousands to sell their trucks is absolutely low to me and in fact so low that Americans should be appalled at their new advertising to the degree that fists should be flying in the executives direction.
Buy a Chevy because of 09/11 and New Orleans is trash advertising at best and an insult to the intelligence of Americans.
Now, I'm not saying that the 3/4-size Toyota trucks were a flop....they did sell enough to be profitable in the market, but they only made minor dents in traditional domestic truck sales instead of significant ones.
10-16-06, 10:24 AM
#15
Granted the regular Tundra was smaller in size vs the Ford and Chevy counterparts but so what? The Titan is larger than all, does that now mean that the Ford/Chevys of the world are not Full Size and the Titan is? I suppose it all depends on one's interpretation of full size. Plus you are forgetting the fact that the Tundra double cab was considerably LARGER than the F150 SUPER CREW at it's launch so I suppose the advertising for Chevy/Ford being full size is not correct. 
Last edited by Pearlpower; 10-16-06 at 10:28 AM.