The Toyota Tundra is the most competent pickup Toyota has ever produced, but the two-year-old truck has been hit hard by the harsh reality of the US auto slump. Gas prices and a sluggish housing industry have conspired to put a wet blanket on the Tundra party, and the San Antonio plant will be closed from August 8 until mid-November to allow dealers to clear out Tundra inventory. When the Texas plant does come back online, a portion of its production could wind up overseas.
At the Management Briefing Seminars, Toyota Motor Manufacturing Kentucky Inc. President Steve St. Angelo said some Tundras and Sequoias could be produced in the US and shipped overseas. While markets like Europe and Asia aren't likely to turn to trucks and SUVs in large numbers, both the Tundra and Sequoia could be a welcomed addition in the Middle East, where cheap gas prices makes big vehicles more acceptable. While the overseas truck market isn't likely to produce huge demand for the Tundra and Sequoia, the currently untapped markets could help the San Antonio plant come closer to running at its peak efficiency.
Toyota posted a 10% sales decline for its bread-and-butter brand of over the month of June, with numbers that are even worse -- an 11.5% drop -- when the Scion and Lexus brands are added into the equation. In response to these very un-Toyota-like sales declines, the automaker is now revamping its vehicle production in the States. Though it has already introduced measures to slow the production of full-size Tundra trucks and Sequoia SUVs, reports indicate the further cuts will be made at the San Antonio truck plant. The Indiana plant, which also produces Tundras, will see workers transferred to other lines where more popular vehicles are assembled. Even plants in Japan that export vehicles to the U.S. could be affected. Toyota is hardly used to seeing double-digit drops in sales in the U.S., so it will be interesting to see how the giant Japanese automaker responds in the months to come.
Toyota has earned its reputation for producing fuel efficient vehicles, but one dent in the Japanese automaker's armor has been the gas-guzzling Tundra and Sequoia. To help rectify the situation, Toyota Engineers have been working hard on a 4.5L clean-diesel powerplant that will substantially improve fuel economy for the body-on-frame trucks. The 4.5L engine is reportedly scheduled to arrive Stateside by 2010, and it's a no-brainer in light of the fact that both Ford and GM are offering similarly sized oil-burners for their trucks and SUVs.
You may remember the Dually Tundra fantasy truck that was shown last year at SEMA. Well, this news means the mega-sized diesel may not be far from reality. Inside Line is also reporting that Toyota may be delivering a monstrous 7.0L diesel for a commercial-grade Tundra, with a possible production date around 2011-2012. Toyota still hasn't given the go-ahead for a heavy duty Tundra, so the king-sized diesel powerplant likely will arrive only if the larger Tundra does, too.
What's built in the States, stays in the States. At least that is how it used to be with one of the world's largest automaker. (The one exception is the Toyota Avalon sedan -- exported to the Middle East last year.)
Toyota has now announced that it will ramp up U.S. vehicle production in Indiana and begin exporting vehicles to other booming markets around the world. The first to leave our shores will be the Toyota Sequoia, as it heads to buyers in the Middle East later this year. The Toyota Sienna minivan will follow, as it will be shipped to China and other markets as early as 2010. This news should be welcomed by workers and suppliers at the automaker's plants as Toyota recently slowed production at several facilities. This new trend of shifting production towards exporting vehicles may help keep them running at capacity, and keep everyone on their jobs.
Although Toyota has recently claimed the title of the World's Largest Automaker in terms of global sales, the Japanese-giant is finding out that life at the top isn't all it's cracked-up to be. While the Camry, Corolla, Yaris and Prius sedans are reportedly brisk movers, the same thing cannot be said about Toyota's line of trucks and sport utility vehicles. Toyota has cut Tundra and Sequoia production already, but dealers are still declining to purchase them, pushing the number of unclaimed units to an all-time high. Automotive News quotes an unnamed Toyota dealer as saying, "Last month, Southeast Toyota had 9,700 vehicles that had been turned down twice by dealers and are either sitting at the port or at sea. That's a significant number." Right now, Toyota/Scion has a high 58-day supply of available inventory on hand.
Some dealers, though, see the high number of available units as a blessing-in-disguise. "We've been asking for more inventory for two years and now we finally got it. This is a great opportunity. You have to take it when you can get it," says Steve Cain, general manager of Lewis Toyota-Scion in Topeka, Kansas. Regardless of your viewpoint, we expect that Toyota will align itself with market realities in order to bring production in line with actual sales sooner rather than later. In other words, if you've been in the market for a Toyota truck, chances are good you'll get a decent deal.
In a rare move for Toyota, the auto company will be slowing production of the Tundra pickup and the Sequoia SUV due to lagging sales. Last year, Toyota sold 196,555 Tundra's, which was just a bit shy of their stated goal of 200,000. Still, it was enough to make the Tundra the fourth-best-selling truck in America, and very close to the GMC Sierra at third. Significantly, those 196,555 sales represent a 57-percent gain in Tundra sales as compared to 2006. Still, Toyota is not selling as many Tundra's as they had hoped, forcing them to slow down their production cycle. Last month, Toyota sold over 10,000 fewer Tundra's than they are capable of producing. No jobs will be lost at either the Princeton, Indiana plant or the San Antonio, Texas plant where Tundra's and Sequoia's are built.
Those in the market for a new truck are very close to welcoming the redesigned '09 Ford F-150 and '09 Dodge Ram to the stable of choices. Despite this announcement, we're nowhere near ready to count Toyota out, and we're sure that they are well aware that they are in the middle of an uphill battle where consumers will have more quality pickups to choose from than ever before.
Gigantor. The 2008 Toyota Sequoia arrives humongously revised from the already beefy first-generation. The Timberland Mica (Metallic Green) example that Toyota lent us for a week definitely deserves whatever size-related superlatives you can dream up. It's big, it's powerful, it doesn't sip fuel. There is a need and a market for this type of vehicle, however. If Sequoia buyers don't actually utilize its considerable capabilities, that's not Toyota's fault. This year marks the migration of Toyota's full size Sport Utility to the same mechanicals that underpin the new Tundra, ladling on capability to an already fairly competent and refined vehicle.
