Incentives Grow as Production Shrinks
By: Mike Levine Posted:
12-10-07 10:35 PT
© 2007 PickupTruck.com
a couple of new data points to consider as we near
the end of the year and Toyota's efforts to meet its stated business
goal of 200,000 Tundra full size pickups sold in the first year of
production. Especially in light of the softening market for full size
pickups. Sales in the segment are down over 8% in 2007 from 2006.
November, Toyota sold 177,336 Tundras - that's up a huge 57.7%
over last year's numbers. But for Toyota to sell another 22,664 Tundra
to close the gap to 200K sales, it's going to require an aggressive
round of incentives.
News is quoting Toyota's General Manager, Bob Carter, who
says, "The full-sized pickup segment has fought an economic headwind.
We still expect to sell 200,000 Tundras this year. It's going to be close."
incentives include: 0-percent financing for 60 months or cash
rebates up to $3,000 on 2007 model year Tundras, and 0-percent
financing for 36 months or cash rebates up to $2,000 on new 2008 pickups.
not the only money Toyota has been spending to move Tundra metal. Marketing
and promotion costs appear to have grown substantially, from their
original $100M budget to
launch the new truck - the biggest introduction in Toyota's history.
Week is reporting that Toyota has spent, "$1,404 on
measured media for every Tundra sold and its ad spending was nearly
$250M for the first nine months of the year."
that's a lot of gravy!
the incentives and marketing costs for the Tundra grow, production
levels are shrinking.
to the Financial
Times, Toyota is preparing for the soft full size truck market
by cutting back production of the Tundra at its factories in Texas
the company reduced the number of Tundra's built to 18,300 units
- a 29 per cent drop from October (25,723 units) and almost a quarter
below the August-October average.
similar announced moves by General Motors and Chrysler for
their full size trucks, but within Toyota's car and truck lineup, Tundra
production fell disproportionately when compared to Tacoma and Camry.
Those two products have seen production levels cut back by about 12%.
still bullish on the Tundra. Last year they used the Super Bowl to
launch the truck, with two 30-second spots that cost over $2M apiece.
There will be another 30-second spot during the 2008 game to hype the
Tundra for the coming year.