Damn, L-tuned Dead, TRD re-focusing
12-03-02, 08:23 PM
#1
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Damn, L-tuned Dead, TRD re-focusing
Toyota Racing Development hits aftermarket slowdown, company scales back ambitions
By MARK RECHTIN | Automotive News
Toyota Racing Development used the 2000 Celica, above, to showcase its performance and appearance products. But the unit now is cutting back on spoilers, air dams and body kits.
LOS ANGELES -- Toyota has scaled back ambitions for its performance parts business.
Only two years ago, Toyota Racing Development's annual revenues were projected to soar to about $50 million by now. Instead, sales have risen to just over $20 million. Growth forecasts have been lowered to a still healthy but less ambitious 15 percent annually.
But Toyota is far from panicking. It said the slowdown was deliberate. Its big move was to cease carrying aerodynamic body part kits that are a big piece of the aftermarket, instead concentrating on street-legal performance parts for a more consistent image.
The company also abandoned its Kazuma line of racing products. And while its sizable display at the Specialty Equipment Market Association show in Las Vegas in November had plenty of vehicles, traffic appeared slow compared with that of other exhibitors.
It also appears that Toyota Racing Development has put Lexus L-Tuned underhood parts on the back burner. Eighteen months ago, executives predicted that supercharged versions of the Lexus IS 300 and GS 300 would be in showrooms within months. It never happened.
A Toyota product-planning source said L-Tuned vehicles were "basically dead."
"Our aftermarket business was expanding rapidly a couple years ago, and while it continues to grow, we have deliberately narrowed our focus," said David Wilson, Toyota Racing Development's vice president of sales and administration. He claims the unit's business is "healthier than ever."
Wilson said Toyota Racing Development felt its supercharger research and sales should be aimed at a broader consumer market, such as the Tundra pickup and outgoing 4Runner sport-utility. A supercharger for the Matrix also is on the way.
But outsiders feel that Toyota Racing Development's slow pace may have more to do with the dowdy image of its parent company. It's hard to sell high-performance parts when your demographic doesn't buy into that sort of thing.
"Toyota got into performance a little late, when its image had already been solidified in a conservative envelope," said Todd Turner, analyst with Car Concepts in Thousand Oaks, Calif. "The base architecture and fundamentals of the cars are sound, but the excitement of the brand is lacking.
"Getting people to see Toyota as something other than a safe choice, they'll have to invest more and get the word out better. It doesn't help that they killed the Supra," Turner said.
Toyota also may be confronting some generational resistance, in that younger buyers traditionally are the ones who modify their vehicles and Toyota customers have aged beyond that demographic boundary, said Joe Ivers, partner with J.D. Power and Associates' office in Troy, Mich.
So why did Toyota stop selling aerodynamic kits when they did such strong business? The cost of designing and holding in inventory all the various rocker panels and valences was too expensive for an operation of Toyota Racing Development's size. Instead, the unit is focusing on performance shocks, brakes, springs and superchargers, said Jim Aust, Toyota Racing Development president.
"It is getting increasingly difficult in this business," Aust said. "Technology changes so fast. You have to be spot-on."
He thinks Toyota Racing Development may have been too aggressive in its growth plans in the past.
As for killing Kazuma, Toyota decided that the parts lineup was not deep enough to justify the expense required to sustain the brand, Wilson said. Those Kazuma products already released were shifted to Toyota Racing Development's "Sport Part" line.
Bringing back Kazuma is a possibility once the unit gets better footing, Wilson said.
Contrary to some industry theories, no Toyota Racing Development resources have been put toward the fledgling Scion youth brand, even though Scion bbX show cars were abundant at the SEMA show. Although Toyota Racing Development communicates with Toyota Motor Sales U.S.A. Inc., it does not take orders from the sales arm.
"We will make go-fast parts for Scion, but we don't respond to Toyota saying, 'Make this.' We look at the business case first," said Gary Boler, Toyota Racing Development senior manager of sales and marketing.
Carl Sheffer, vice president of OEM relations for SEMA, said that some customers may want the reassurance of a Toyota badge on their add-on products, but there is no way Toyota Racing Development can match the speed and agility of smaller independent companies in hitting market trends. Given the access their dealer body provides, Toyota can get a piece of the action, but never the lion's share, because most consumers prefer to chart their own course with modifications.
"Exterior and interior treatments are very individualistic," Sheffer said. "The size and complexity of some systems does not lend itself to short (production) runs by a big company. And 99 percent of our member companies can beat the automaker at a price point.".
Counters Wilson: "Our customers have higher expectations. It's forced us to elevate our game."
Damn
By MARK RECHTIN | Automotive News
Toyota Racing Development used the 2000 Celica, above, to showcase its performance and appearance products. But the unit now is cutting back on spoilers, air dams and body kits.
LOS ANGELES -- Toyota has scaled back ambitions for its performance parts business.
Only two years ago, Toyota Racing Development's annual revenues were projected to soar to about $50 million by now. Instead, sales have risen to just over $20 million. Growth forecasts have been lowered to a still healthy but less ambitious 15 percent annually.
But Toyota is far from panicking. It said the slowdown was deliberate. Its big move was to cease carrying aerodynamic body part kits that are a big piece of the aftermarket, instead concentrating on street-legal performance parts for a more consistent image.
The company also abandoned its Kazuma line of racing products. And while its sizable display at the Specialty Equipment Market Association show in Las Vegas in November had plenty of vehicles, traffic appeared slow compared with that of other exhibitors.
It also appears that Toyota Racing Development has put Lexus L-Tuned underhood parts on the back burner. Eighteen months ago, executives predicted that supercharged versions of the Lexus IS 300 and GS 300 would be in showrooms within months. It never happened.
A Toyota product-planning source said L-Tuned vehicles were "basically dead."
"Our aftermarket business was expanding rapidly a couple years ago, and while it continues to grow, we have deliberately narrowed our focus," said David Wilson, Toyota Racing Development's vice president of sales and administration. He claims the unit's business is "healthier than ever."
Wilson said Toyota Racing Development felt its supercharger research and sales should be aimed at a broader consumer market, such as the Tundra pickup and outgoing 4Runner sport-utility. A supercharger for the Matrix also is on the way.
But outsiders feel that Toyota Racing Development's slow pace may have more to do with the dowdy image of its parent company. It's hard to sell high-performance parts when your demographic doesn't buy into that sort of thing.
"Toyota got into performance a little late, when its image had already been solidified in a conservative envelope," said Todd Turner, analyst with Car Concepts in Thousand Oaks, Calif. "The base architecture and fundamentals of the cars are sound, but the excitement of the brand is lacking.
"Getting people to see Toyota as something other than a safe choice, they'll have to invest more and get the word out better. It doesn't help that they killed the Supra," Turner said.
Toyota also may be confronting some generational resistance, in that younger buyers traditionally are the ones who modify their vehicles and Toyota customers have aged beyond that demographic boundary, said Joe Ivers, partner with J.D. Power and Associates' office in Troy, Mich.
So why did Toyota stop selling aerodynamic kits when they did such strong business? The cost of designing and holding in inventory all the various rocker panels and valences was too expensive for an operation of Toyota Racing Development's size. Instead, the unit is focusing on performance shocks, brakes, springs and superchargers, said Jim Aust, Toyota Racing Development president.
"It is getting increasingly difficult in this business," Aust said. "Technology changes so fast. You have to be spot-on."
He thinks Toyota Racing Development may have been too aggressive in its growth plans in the past.
As for killing Kazuma, Toyota decided that the parts lineup was not deep enough to justify the expense required to sustain the brand, Wilson said. Those Kazuma products already released were shifted to Toyota Racing Development's "Sport Part" line.
Bringing back Kazuma is a possibility once the unit gets better footing, Wilson said.
Contrary to some industry theories, no Toyota Racing Development resources have been put toward the fledgling Scion youth brand, even though Scion bbX show cars were abundant at the SEMA show. Although Toyota Racing Development communicates with Toyota Motor Sales U.S.A. Inc., it does not take orders from the sales arm.
"We will make go-fast parts for Scion, but we don't respond to Toyota saying, 'Make this.' We look at the business case first," said Gary Boler, Toyota Racing Development senior manager of sales and marketing.
Carl Sheffer, vice president of OEM relations for SEMA, said that some customers may want the reassurance of a Toyota badge on their add-on products, but there is no way Toyota Racing Development can match the speed and agility of smaller independent companies in hitting market trends. Given the access their dealer body provides, Toyota can get a piece of the action, but never the lion's share, because most consumers prefer to chart their own course with modifications.
"Exterior and interior treatments are very individualistic," Sheffer said. "The size and complexity of some systems does not lend itself to short (production) runs by a big company. And 99 percent of our member companies can beat the automaker at a price point.".
Counters Wilson: "Our customers have higher expectations. It's forced us to elevate our game."
Damn
12-03-02, 09:24 PM
#4
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Yeah, I got mad sources saying a supercharged IS 300 L-tuned LAST MAY, it never happened.
Unless they let TTE do their tuning. I guess the I-6 is a gonna, possibly the greatest engine of all time.
Now, I gotta get these ******* L-tuned stickers off my car
Unless they let TTE do their tuning. I guess the I-6 is a gonna, possibly the greatest engine of all time.
Now, I gotta get these ******* L-tuned stickers off my car
12-04-02, 12:02 AM
#5
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To bad no one listened to me about a couple of months ago when I told you all this.. ( L- Tuned going under) But noooo, everyone already knows everything..
I think that people should listen before they comment on things and just take advice.. Sorry to sound like an A@@, i just hate people who think they know everything.
Adam " Leixst "
I think that people should listen before they comment on things and just take advice.. Sorry to sound like an A@@, i just hate people who think they know everything.Adam " Leixst "
Last edited by 1loudlex; 12-04-02 at 12:03 AM.
12-04-02, 01:55 AM
#6
Lexus Fanatic
Toyota/TRD/L-Tuned put in a half-assed effort and they got a half-assed response...did they really think that it would "blow up" when their offereing wasn't really anything? The add-ons should have been a $1000 "sport package" upgrade...
Lexus just doesn't care...
Lexus just doesn't care...
12-04-02, 10:15 PM
#7
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What did they expect?
How did they expect to grow to $50 million when the majority of their dealers refuse to put on even the simplest L_tuned part? I had the service manager literally laughing when I was explaining how they could just replace the inards of the rear with a TRD LSD. He said no way in h@#ll.
My Lex dealer said they couldn't even order the parts for me. Look at us. The majority of us order from a Toyota dealer in CA!
What did Toyota/Lexus expect?
It would be a different story if they outfitted a L-tuned from the factory and actually offered it through the dealerships. Could you imagine the Car & Driver write-up for a fully tuned GS? Sways, exhaust, rims/tires, STB, body kit, LCB and steering ECU would have raised some awareness (eyebrows). Not even with the Toms or SRT stuff on it! Too bad.
Oh well, XEROX invented the PC and never did anything with it. I wonder if David Wilson or some of the other execs came from Xerox?
Ahhhh, I feel better now...
My Lex dealer said they couldn't even order the parts for me. Look at us. The majority of us order from a Toyota dealer in CA!
What did Toyota/Lexus expect?
It would be a different story if they outfitted a L-tuned from the factory and actually offered it through the dealerships. Could you imagine the Car & Driver write-up for a fully tuned GS? Sways, exhaust, rims/tires, STB, body kit, LCB and steering ECU would have raised some awareness (eyebrows). Not even with the Toms or SRT stuff on it! Too bad.
Oh well, XEROX invented the PC and never did anything with it. I wonder if David Wilson or some of the other execs came from Xerox?
Ahhhh, I feel better now...
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12-05-02, 05:30 AM
#8
Lexus Fanatic
^^ Exactly...unfortuantely, sometimes, big wigs at corporations want to see results before they put forth any effort...which is COMPLETLY STUPID in my opinion. The company need to full back the project to make sure that something comes of it...not just sit back so they can say "told you so"...Toyota/Lexus strikes me as the type of company that would need proof before they put forth REAL effort...
Well if anyone from Toyota/Lexus is reading this...BMW M and Mercedes AMG **IS** PROOF. LUXURY OWNERS WANT PERFORMANCE TOO. Half-assed attempts like L-Tuned is NOTHING BUT A SLAP IN THE FACE TO THE CONSUMER.
Don't be so conservative. Mercedes and BMW know the secrets...IMAGE IS EVERYTHING. PERCEPTION IS REALITY. How do you think they retain their buyers even though they sell COMPLETELY SUB-PAR automobiles? People don't just want safety and reliability, they want performance and looks. And judging by Mercedes and BMW buyers, performance and looks are more important.
Now imagine if Lexus was able to deliver ALL OF IT? All for a reasonable price (because we know Toyota can)...put M3/M5 to shame...put the AMG to shame...make Lexus owners proud...make Mercedes and BMW owners second guess their purchases...
Of course, Toyota/Lexus might be happy exactly where they are and they just don't give a rat's ***...
Well if anyone from Toyota/Lexus is reading this...BMW M and Mercedes AMG **IS** PROOF. LUXURY OWNERS WANT PERFORMANCE TOO. Half-assed attempts like L-Tuned is NOTHING BUT A SLAP IN THE FACE TO THE CONSUMER.
Don't be so conservative. Mercedes and BMW know the secrets...IMAGE IS EVERYTHING. PERCEPTION IS REALITY. How do you think they retain their buyers even though they sell COMPLETELY SUB-PAR automobiles? People don't just want safety and reliability, they want performance and looks. And judging by Mercedes and BMW buyers, performance and looks are more important.
Now imagine if Lexus was able to deliver ALL OF IT? All for a reasonable price (because we know Toyota can)...put M3/M5 to shame...put the AMG to shame...make Lexus owners proud...make Mercedes and BMW owners second guess their purchases...
Of course, Toyota/Lexus might be happy exactly where they are and they just don't give a rat's ***...
12-05-02, 08:30 AM
#9
Lexus Test Driver
I posted a while back about an l-tuned IS I seen at the dealer, the add on package was $10,000 for like wheels, body kit, what else? add on some serious performance mods for $10,000, supercharger, big brakes...
Last edited by jpa2400; 12-05-02 at 09:43 AM.
12-05-02, 08:47 AM
#10
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remember when benz was the stuffiest old mans car??? look at whats happened... I see Lexus and now its the stuffy old mans car (sorta) its kind of sad... Lexus has great engines, great performance potential yet they just dont want to do enough work to actually make decent upgrade... if they had put more effort into the program I'm sure they would have had much more favorable results but throwing a bunch of junk on the market isnt going to change the image of Lexus
Last edited by carnal_c30; 12-05-02 at 08:53 AM.
12-09-02, 04:41 PM
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Re: What did they expect?
Originally posted by nudderGS400
It would be a different story if they outfitted a L-tuned from the factory and actually offered it through the dealerships.
It would be a different story if they outfitted a L-tuned from the factory and actually offered it through the dealerships.
12-09-02, 04:43 PM
#13
Re: Re: What did they expect?
Originally posted by Iceman
No, because that's actually how they started out. Apparently the L-Tuned cars sat on the lots because no one wanted to pay that much more for the mods. The IS still comes from the factory L-Tuned (well, at least as of a few months ago) and supposedly there was more interest in that than the GS, but still not enough to make dealers want to order lots of them.
No, because that's actually how they started out. Apparently the L-Tuned cars sat on the lots because no one wanted to pay that much more for the mods. The IS still comes from the factory L-Tuned (well, at least as of a few months ago) and supposedly there was more interest in that than the GS, but still not enough to make dealers want to order lots of them.
You buy a C32 from the dealer is different from buying a C320 and taking it to AMG for mods
12-09-02, 09:16 PM
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Re: Re: Re: What did they expect?
Originally posted by GlobeCLK
People just don't want the whole package out of the dealership. That takes the fun out of modding cars.
You buy a C32 from the dealer is different from buying a C320 and taking it to AMG for mods
People just don't want the whole package out of the dealership. That takes the fun out of modding cars.
You buy a C32 from the dealer is different from buying a C320 and taking it to AMG for mods
12-10-02, 02:47 PM
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Re: Re: Re: What did they expect?
Originally posted by GlobeCLK
People just don't want the whole package out of the dealership. That takes the fun out of modding cars.
You buy a C32 from the dealer is different from buying a C320 and taking it to AMG for mods
People just don't want the whole package out of the dealership. That takes the fun out of modding cars.
You buy a C32 from the dealer is different from buying a C320 and taking it to AMG for mods
And I count myself part of the at least 95% of the public that neither mods their cars nor wants to--I want it perfect off the lot. I was happy with the performance of my M Roadster, I like the L-Tuned stuff that I got installed before delivery, but I would never have ANYTHING touched after-the-fact. No clear lenses, flurourescent-painted calipers, unecessary metal rods across the engine bay, etc.