Information Network Reports Strong Debut for Tundra
Source: JD Power and Associates Press
03-20-07 13:55 PT
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patterns for the all-new 2007
Toyota Tundra suggest a strong start for this model in the domestic-dominated
large pickup segment, according to real-time retail transaction data from
the Power Information Network (PIN), a division of J.D. Power and Associates.
all-new 2007 Toyota Tundra large pickup was launched in early February,
owner loyalty for this model, which represents the percentage of Tundra
owners who traded for another Tundra, is 53 percent (February only) --
more than twice the January rate of its predecessor and more than 20 percentage
points higher than in February of 2006. Additionally, trading from the
Tundra to each of the mainstream domestic large pickups (Chevrolet
Silverado 1500, Ford
F-150, Ram 1500)
dropped considerably in February when compared with January, while trading
in the reverse direction increased.
owners of domestic large pickups remained relatively loyal to their vehicles.
According to PIN data, both the Silverado 1500 and F-150 experienced owner
loyalty increases of 4 percentage points when comparing transactions in
February to those in January, while the Ram's owner loyalty remained steady.
(Loyalty for the Titan
is not included since it has only been on the market for three and one-fourth
The combination of increased Tundra loyalty and steady domestic model
loyalty raised the large pickup segment share of industry from 12.4 percent
in January to 14.4 percent in February.
"It's still early, and owner loyalty is just one measure of marketplace
success, but so far the Tundra seems to be gaining strength in the segment,"
said Tom Libby, senior director of industry analysis at PIN. "This
is an interesting scenario because the impressive strength of the Toyota
juggernaut is being pitted against the domestics' long-time stronghold."
The Tundra's owner loyalty rose in February even though it sold at a
higher average retail transaction price than any of its direct competitors.
The actual retail transaction price for the all-new 2007 Tundra in February
was $33,182 -- almost $900 more than the F-150 ($32,312) and $1,450 more
than the Silverado 1500 ($31,727). The Ram 1500 ($25,564) and the Titan
($27,664) both sold at prices considerably below the competition.
Four of five large pickup models sold with loans that included an annual
percentage rate (APR) between 9 and 11 percent, while the F-150's APR
was far below the competition at slightly more than 7 percent. The monthly
payment for these models, purchased with a 72-month loan, ranged from
$558 to $603.
"New products and stable fuel prices will drive a strong rebound
in the large pickup segment in 2007, increasing from 13.5 percent of the
total sales market in 2006 to 14.2 percent," said Jeff Schuster,
executive director of automotive intelligence at J.D. Power and Associates.
"Toyota dove head first into a very competitive segment with a solid
entry, and although the model lineup is not yet as robust as the competition,
we expect the Tundra to nearly double in volume from 124,508 in 2006 to
210,000 in 2007."
PIN data also indicates that while the national transaction price for
the 2007 Tundra was the highest in the competitive set, the Tundra did
not sell at the highest price in every region of the country. Specifically,
the Tundra commanded the highest transaction price in the Midwest, Southwest
and West, but its price was second highest in the Northeast (after the
F-150) and third in the Southeast (after the Silverado 1500 and F-150).
Additionally, the Tundra's price ranged from a high of $34,394 in the
West to a low of $32,796 in the Southwest. Transaction prices in the Southwest
for each of the five large pickup models were lower than in any other
region, reflecting the fierce competition in large pickups in this particular
part of the country.