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Toyota Wins Over Texas In Tundra Sales

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Old 01-11-08, 06:42 PM
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Default Toyota Wins Over Texas In Tundra Sales

Toyota Tundra Takes Texas, Destroys Detroit Bastion

By Bill Koenig
Jan. 11 (Bloomberg) -- Toyota Motor Corp. is winning the battle for full-sized pickup buyers in Texas, the biggest market for the trucks that are Detroit automakers' best-selling models.

Promoting the redesigned 2007 Tundra, Toyota forced General Motors Corp., Ford Motor Co. and Chrysler LLC to match incentive spending estimated at about $6,000 per truck. While Tundra's Texas market share soared 79 percent, competitors' shrank by 5 percent, said market-research firm R.L. Polk & Co.

Money-losing GM, Ford and Chrysler can ill afford to cede ground to Toyota City, Japan-based Toyota, especially in Texas, which accounts for more than one of every seven large-truck sales. The Texas competition will make it harder for Ford and Chrysler to benefit from the revamped F-Series and Dodge Ram pickups being unveiled at the Detroit auto show Jan. 13.

Tundra sales ``are coming from traditionally Ford, Chevrolet and Dodge'' buyers, said dealer Sam Pack, who owns three Ford stores in the Dallas area. ``Have they negatively affected Ford? No question they have.''

Nationally, 2007 sales soared 58 percent as Toyota redesigned the Tundra to vault it into the full-size category. Meanwhile, GM's Chevrolet Silverado, Ford's F-Series, Chrysler's Ram and Nissan Motor Co.'s Titan fell, leading a 3.2 percent slide for the segment.

Last year's 196,555 Tundra deliveries were less than a third of the total for the Silverado and the F-Series, the nation's top-selling vehicle, and slightly more than half of the tally for the Ram.

Still, Toyota's investment of $1.28 billion to open a Tundra assembly plant in San Antonio in 2006 signals the automaker's aim to win more full-size truck sales.

Toyota Fans

Toyota is rated by 17 analysts as a ``buy,'' compared with two who say hold and two who say sell, based on a Bloomberg survey. Of 19 analysts following Detroit-based GM, six advise buying, 10 holding, and one selling. Four analysts rate Ford a ``buy,'' while seven say hold and five say sell.

GM has tumbled 23 percent in the past year, while Dearborn, Michigan-based Ford gained is down 19 percent for the same period. Toyota lost 26 percent in the past year.

Texas has been among the industry's few recent bright spots for full-size trucks.

As sales fell 14 percent nationally from 2004 through 2007, they rose 5.2 percent in Texas, R.L. Polk auto-registration data show. Texas's total of 244,945 full-size trucks through Sept. 30 was 61 percent more than runner-up California's.

Falling Fords

Ford's F-Series fell to 31.9 percent of the Texas market through Sept. 30, down 5.5 percentage points from a year earlier, while Silverado was little changed at 26.7 percent and Ram rose 1.4 points to 19.8 percent, according to Southfield, Michigan-based R.L. Polk. Nissan's Titan slipped to 2.9 percent from 3.1 percent. The Tundra rose to 8.4 percent from 4.7 percent.

``I hear the market is down. We're up 120 percent,'' said Dale Minor, general manager of Freeman Toyota in the Dallas-Fort Worth suburb of Hurst.

The new Tundra has a wheelbase as much as 3.7 percent longer than its predecessor, and options include a new V-8 engine. Matching Detroit's size and power lets Toyota keep buyers who chose GM or Ford pickups after driving their cars and SUVs, U.S. sales chief Jim Lentz said in a 2007 interview.

Depending on the model and before incentives are factored in, the Tundra ranges in price from $22,290 to $42,070, while the F-150 ranges from $17,345 to $39,500, according to auto- pricing Web site Edmunds.com

Automakers' Incentives

Toyota relied on incentives to spur sales, spending up to $6,400 on each Tundra, according to estimates from CNW Marketing Research Inc., which includes items such as rebates and discount financing. Bandon, Oregon-based CNW projects Ford spent $6,647 for each F-150, GM $6,019 on each Silverado and Chrysler $6,477 on each Ram.
http://www.bloomberg.com/apps/news?p...d=atms0bFSCrLU
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Old 01-11-08, 09:31 PM
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4TehNguyen
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yea theres tons of them in Houston. Whenever I take a trip to san antonio i always see a lot of semis transporting tundras from san antonio
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