camry craze

[toyoguy]

http://www.autoweek.com/apps/pbcs.dll/arti...41/TOC01ARCHIVE

Long America's best-selling car, the newest Camry has cranked things up a notch

By MARK RECHTIN | AUTOMOTIVE NEWS

AutoWeek | Published 08/28/06, 7:47 am et

LOS ANGELES - The best-selling car in America is hot.

Dealers have a slim 10-day supply of the redesigned 2007 Toyota Camry, which hit dealerships in March. The Georgetown, Ky., plant is running overtime and weekend shifts. Sales executives are begging for the Japanese Camry plant to export more. The car has no incentives.

"Customers are following the car carriers to the dealership," says Toby Hynes, president of Gulf States Toyota, which distributes vehicles to 148 Toyota dealerships. "This is not just selected dealers. It's every dealer in every market that is short of product."

The 2007 redesign gave the Camry more attractive styling, more interior room and more power. A hybrid version is now available. And rising gasoline prices are pushing customers away from trucks and toward cars.

If Toyota's manufacturing plants keep up with demand, there is a strong chance that the Camry could be the first car to top 450,000 sales since the Chevrolet Impala in 1978.

The Camry has been America's best-selling car every year but one since 1997.

Sales, transaction prices up

Since the March launch of the redesigned model, Toyota has sold 205,615 Camrys, including the still-to-be-redesigned Camry Solara coupe, up 3.1 percent from the March-July period of last year, according to the Automotive News Data Center. Sedan sales account for 90 percent of the total.

A 3.1 percent increase is modest, considering redesigns typically boost demand. But dealers say they could sell many more if stock were available. And the average transaction price of the Camry is rising, from $22,378 in April to $22,558 in July, according to the Power Information Network.

Meanwhile, many light-truck segments are faltering with $3-per-gallon gasoline. Full-sized SUVs fell 29.5 percent in the five-month period.

Mid-sized cars are flat, down 0.4 percent in the March-July period.

Before the redesign, the Camry was a loss-leader for Toyota dealers; dealers ordered them to become eligible for hotter, more profitable models. The cars often sold for below dealer invoice.

"There were years in the not-distant past when you were content to lose a grand a unit on Camry, because you'd make it up on other products," says Fritz Hitchcock, a multiline dealer in Puente Hills, Calif.

"Now we're getting within $500 of sticker, and we can make a buck on them. You'd have to be asleep at the switch not to be selling these."

As Toyota factories rush to fill Camry orders, the launch has encountered a speed bump. Internet chat sites such as Edmunds.com, MSN Autos and Yahoo! Autos list hundreds of customer complaints about 2007 Camry powertrains hesitating under low-speed acceleration. That echoes problems suffered in the launch of last year's redesigned Avalon, which shares many components with the Camry.

In response to these complaints, Toyota has issued several technical service bulletins for the 2007 Camry powertrain, a spokesman said. The bulletins address transmission malfunctions, spiking RPMs and harsh downshifts.

Toyota's success around the world has caused a substantial review of the company's vaunted quality procedures.

Executives are pondering whether Toyota's rapid growth is undermining vehicle quality, forcing a reevaluation of the automaker's launch strategy.

More room, more pizazz

In the redesign, Toyota accurately gauged consumer demands for a more upscale interior, more rear-seat room and more power, dealers say.

Its exterior design also is more appealing. In a review, AutoWeek described the Camry as having "more interesting surface treatments, shapes, lines and details."

Even in domestic-friendly Michigan, Toyota dealers are sold out of Camrys.

"Customers aren't treating this like a core volume car. They're acting like it's a niche car," says Rosario Criscuolo, owner of Spartan Toyota in Lansing, Mich.

"The only reason we are discounting off sticker price is so we can help people get out of a negative equity situation when they finance," Criscuolo says. A customer has negative equity when he owes more on his car loan than the car is worth.

Another Camry advantage is a strong residual value from Automotive Lease Guide, he says. After three years, the Camry retains 62 to 64 percent of its sticker price, depending on the trim level. The residual, the value of a vehicle at the end of a lease, allows Toyota to offer low monthly lease payments.

Mid-sized cars continue to account for more than half of the vehicles traded in to get a Camry. However, SUVs have increased from 13.3 to 15.6 percent of vehicles traded in, according to PIN data. During the March-July period, the Ford Explorer was the fifth-most traded-in vehicle for a Camry, up from eighth in the same period of 2005, the PIN data states.

"We're seeing a lot of SUVs coming in on trades, from Envoys to Explorers and Navigators," Criscuolo said. "They are getting out of domestic SUVs and into our car. Now we're going to retain them."

More stock coming

Some inventory relief will come this fall when the Georgetown plant begins building 48,000 Camry Hybrid models, about one-eighth of Camry production at the plant. That will free up Toyota's Japanese export allocation for more standard Camrys, while the Japanese hybrid plant can concentrate on Prius production.

Next spring the Subaru plant in Indiana will begin building Camrys at a rate of 100,000 units per year. But that will not be incremental production, cautions Toyota manufacturing spokesman Dan Sieger. Those units will be used to decrease the number of Camry exports from Japan.

[toyoguy]

Last time I got an oil change my dealer had none on the lot.

They had presold an XLE and hybrid and kept those in the back.

[Guest YellowJacket894]

Sorry. The day the Camry appeals to me will be the day God finally sends me to Hell and gives me a nice glass of ice water.

And let us not forget that Toyota can't keep quality consistant to meet demand. I wonder how many of them will be duds in the next batch?

Edited August 29, 2006 by YellowJacket894

[Drew Dowdell]

go go toyota! crank them out as fast as you can!!!

[chevelle454]

Last time I got an oil change my dealer had none on the lot.

They had presold an XLE and hybrid and kept those in the back.

186085[/snapback]

They were all probably in the service area waiting for repairs.

[Farkas]

My family owns a Camry [98], and to be honest, there is not much that is special about it. Nothing says anonymous like "There are 400,000 more of me in the same exact color!" That color would be gray. Like ours.

Yay for Grandmother Gray.

[Drew Dowdell]

Faster! Faster!

Wait! You forgot a trunk lid! And this one's missing a steering wheel! This one has no passenger seat! Okay, now you're just throwing parts down the assembly line. Scew it. I quit . . .

186149[/snapback]

this one is missing 2nd and 6th gears.... oh... wait...

[Northstar]

My dealer currently has 16, all of them over $20k, except one, which is listed at $0... and they still can't sell it?!?!

[Dsuupr]

It will be interesting to see toyota take a dive due to the push to get the camrys out.

[FAPTurbo]

They're selling fast out my way. Saw two new ones merge in front of me while driving... both were grey... ...

Back to the Bland

[Satty]

I sense a wee bit of jealousy.

[FAPTurbo]

The Camry is like a Jello Pudding Pop. No! Actually it's more like Kodak film. No! Actually the new Camry is like New Coke. It'll be around forever. Heh heh heh . . .

186261[/snapback]

[Matt276]

Toyota is GOD.

[Drew Dowdell]

I sense a wee bit of jealousy.

186262[/snapback]

so do the workers on the Breyers Vanilla Ice cream production line....

[the_yellow_dart]

I'm not surprised that it's selling well. I am, however, surprised that it's selling better than its' predecessor. The last one had fewer quality issues and was more attractive. The back on the new one is nice, but I just can't get over that pig-hit-with-a-shovel nose.

[CARBIZ]

It takes no talent to give a car away. I am shocked that nobody has picked up on the REAL part of this story: $500 over invoice?

GASP!!! COULD TOYOTA BE DUMPING CARS ON THE AMERICAN MARKET???

NAY! THE SHAME! (Oh, wait - that's just what Toshiba, Hitachi did 35 years ago.)

If the Camry is so great, why can they only get $500 over invoice?

I would get fired for selling an Impala $500 over invoice.

Oh, wait - I guess Toyota would rather pay MT, CR, etc. to give good reviews, rather than let their dealers make any money.

[Matt276]

Nowadays, Toshiba and Hitachi are pretty much dead.

[Robert Hall]

It takes no talent to give a car away.  I am shocked that nobody has picked up on the REAL part of this story: $500 over invoice?

  GASP!!!  COULD TOYOTA BE DUMPING CARS ON THE AMERICAN MARKET???

  NAY!  THE SHAME!  (Oh, wait - that's just what Toshiba, Hitachi did 35 years ago.)

  If the Camry is so great, why can they only get $500 over invoice?

  I would get fired for selling an Impala $500 over invoice.

  Oh, wait - I guess Toyota would rather pay MT, CR, etc. to give good reviews, rather than let their dealers make any money.

186355[/snapback]

Didn't GM sell cars under invoice last year with all the 'Employee Pricing' stuff?

[PurdueGuy]

Yay for Grandmother Gray.

186136[/snapback]

Better than '80s grandma brown. lol

I think the new ones look alright, if chubby. I'm still hoping that these recent troubles will get people to quit treating Toyota like a god in lean manufacturing, which is the direction I'm looking to head with my career. Yes, Toyota does a lot of things right with lean. No, they are not perfect, and other companies should not just copy their practices like robots.

[CARBIZ]

I can't comment on what U.S. dealers did, but with the employee pricing up here we were definitely averaging more than $1,000 per vehicle with the rebates GM was giving us.

I do not know of any GM dealers up here that sell for less than $1,000 over invoice - even on an Aveo! I know invoice pricing is a bigger deal down south, but up here there are no free or easy ways of getting Canadian invoice pricing so the consumer doesn't have access to that info anyway.

I have to say that last August when Employee Pricing was in full swing up here (we started it a month later in Canada) I had my best month in the business, both money wise and volume wise.

We do not give away our Chevrolets, yet we have all the major brands within a mile drive of us.

And it is true that over at our Toyota store their average transaction price is below what we charge; however, they do soak the customers on used. They average more than $2,500 per used vehicle.

So, isn't it interesting that Toyota keeps the selling price of their new vehicles artificially low and their selling price of used very high, thus perpetuating the myth that Toyota builds high demand, high resale value vehicles.

[toyoguy]

If the Camry is so great, why can they only get $500 over invoice?

186355[/snapback]

where did you read that? and $500 over invoice is fine, as most dealers make their money in the service department, not through the actual sale.

[pow]

It takes no talent to give a car away.  I am shocked that nobody has picked up on the REAL part of this story: $500 over invoice?

  GASP!!!  COULD TOYOTA BE DUMPING CARS ON THE AMERICAN MARKET???

  NAY!  THE SHAME!  (Oh, wait - that's just what Toshiba, Hitachi did 35 years ago.)

  If the Camry is so great, why can they only get $500 over invoice?

  I would get fired for selling an Impala $500 over invoice.

  Oh, wait - I guess Toyota would rather pay MT, CR, etc. to give good reviews, rather than let their dealers make any money.

186355[/snapback]

There's $3000 between MSRP and invoice, so "$500 off sticker" would be $2500 profit...

[Sajeev Mehta]

where did you read that?  and $500 over invoice is fine, as most dealers make their money in the service department, not through the actual sale.

186388[/snapback]

Don't forget about dealer holdback and factory-to-dealer cash. Even if you sell cars at invoice all day, you (as a dealership, not as a salesman) still make money. And the more you sell, the more allocation you get.

Edited August 29, 2006 by Sajeev Mehta

[regfootball]

Never again will I suffer through owning another UJS car. The Camlee is the epitome of UJS and it just goes to show how bland Americans want it.

No way the camlee keeps selling this way after the 07 Altima comes out.

the hertz near my house already has gotten their 07 Camlees. They had them parked next to the other toyota and hyundais. FLEET CAMRYS !!!!!!

Aura will bite into it some too.

[Mr.Krinkle]

theres no camry craze. its the status quo from toyota... the next car to eat into camry sales can be termed a "craze"...such as the 300's for example are a craze.

if the malibu and impalas of the next gen are a success, then thatd be considered a craze.

this is just more of the same. no shock here.

[MyerShift]

The Camry is absolutely hideous.

The only, and I mean the ONLY good thing about it aesthetically is the interior.

Some old bat comes through McD's every morning in a "Granny Grey" one, and it has "granny Grey" interior too, but the interior does look nice.

I'd never drive one.

[regfootball]

The Camry is absolutely hideous.

The only, and I mean the ONLY good thing about it aesthetically is the interior.

Some old bat comes through McD's every morning in a "Granny Grey" one, and it has "granny Grey" interior too, but the interior does look nice.

I'd never drive one.

186480[/snapback]

Jesus Joseph and Mary. I look at CamLEE interior pictures and its already been done. My Diamantes interiors were really damn frickin close to the new camLEE interior. now, everyone who's ever driven a car before is like, WOW that's a nice interior! I'm like, CAN WE PLEASE GET SOMETHING A LITTLE MORE ORIGINAL?!!??!!?!?!?!

AGAIN the camLEEEEE sales will nosedive once the Aura and 07 Altima gain sales steam.

Edited August 29, 2006 by regfootball

[cmattson]

The rear end of the new Camry is hideously tall. Pay attention next time you see one & it'll be the first thought everytime you see one thereafter. As for the interior - it's nice, but Toyota deserves to get knocked around for the fake-metal-trim. It looks and feels plasticy - and the overuse of 'door-access-panels' really irks me. I can't remember the last time I went "gee, if only my car had a garage-door like flap so I could cover up the radio, and the cigarette lighter, and the cup holder.." More useless crap, imo...

[Polish_Kris]

I sense a wee bit of jealousy.

186262[/snapback]

Ya, I don't see Malibus selling that well (it's suppose to be such an amazing car according to many here). And it's not anti-American propeganda, because I see many Fusions likewise many new Camrys on the road here in Toronto.

[Polish_Kris]

No way the camlee keeps selling this way after the 07 Altima comes out.

186443[/snapback]

At the beginning maybe, but the Altima will have it's 15 minutes of fame like it's predicessor. The Camry has been selling well since 1997.

[Variance]

At the beginning maybe, but the Altima will have it's 15 minutes of fame like it's predicessor.  The Camry has been selling well since 1997.

186614[/snapback]

What are you talking about? The 3rd-generation Altima is very popular vehicle. Sales are only slowing on the tail end of the current generation and the pending release of the much-improved 2007.

In fact, I can't recall the Altima ever being a slow-selling car.

[Robert Hall]

My family owns a Camry [98], and to be honest, there is not much that is special about it.  Nothing says anonymous like "There are 400,000 more of me in the same exact color!"  That color would be gray.  Like ours.

Yay for Grandmother Gray.

186136[/snapback]

How about Stereotypical Indian H1-B Computer Programmer teal green? I know and work with quite a few Indian programmers that drive green Camrys...(or Corollas)...

Edited August 30, 2006 by moltar

[Sixty8panther]

WTF?

Easy Reader? I've never seen or heard of this. Then again

I came ot the USA in 1987 as a young kid, this seems to

be from the mid 1970s.

Is that Morgan Freeman BTW?

[Robert Hall]

WTF?

Easy Reader? I've never seen or heard of this. Then again

I came ot the USA in 1987 as a young kid, this seems to

be from the mid 1970s.

Is that Morgan Freeman BTW?

186640[/snapback]

The Electric Company was an educational '70s kid's show on PBS.. and yes, that was Morgan Freeman..I watched this, Sesame Street and the Muppet Show avidly as a kid in mid '70s, before I moved on to prime-time fare such as the Rockford Files, Starsky and Hutch, and CHiPs..

[regfootball]

At the beginning maybe, but the Altima will have it's 15 minutes of fame like it's predicessor.  The Camry has been selling well since 1997.

186614[/snapback]

the current altima had strong sales every year. it was still gaining sales last time I checked. i think one year it got close to 200k sales.

the new altima looks better and will be a better driver's car. plus, it doesn't have the nerd/granola humpers/clueless boomer/non independent thinker/CR banger/only buying a car because i need one*edit* /TEAL GREEN CAMRY DRIVING COMPUTER PROGRAMMER * /i want to send all my riches to japan because my own country sucks/still living in the 90's thing going on.

new altima- bluetooth/cvt/keyless start/driver oriented interior/nissan VQ/not toyota dealers

Edited August 30, 2006 by regfootball

[regfootball]

How about Stereotypical Indian H1-B Computer Programmer teal green?  I know and work with quite a few Indian programmers that drive green Camrys...(or Corollas)...

186632[/snapback]

ROTFLMAO!!!!!!!!!!!!! I saw one of those driving a new 07 Camlee hybrid the other day!!!!!!! OMG! you so nailed it! The seagate company offices are like 2 miles from my house and where i saw the car was like a mile from that! LOL I should comb the seagate parking lot some time and do a camlee count.

[regfootball]

and then go by the hertz on my way home and see even more 07 camLEES!!!!!!!!!

[siegen]

and then go by the hertz on my way home and see even more 07 camLEES!!!!!!!!!

186676[/snapback]

Except all you will see is Malibu's and Impala's, cause the only Camree's Hertz has get snatched up by the vacationers long before the others.

[regfootball]

Except all you will see is Malibu's and Impala's, cause the only Camree's Hertz has get snatched up by the vacationers long before the others.

186680[/snapback]

mostly corollas and sonatas at my hertz.......

[Polish_Kris]

Except all you will see is Malibu's and Impala's, cause the only Camree's Hertz has get snatched up by the vacationers long before the others.

186680[/snapback]

HeHe...

I see what you're getting at, I was up north with my buddy on the weekend and he told me he was renting a car last year for the may 2-4 long weekend. He is not a car guy at all, and is very neutral about cars. He said he wanted a car with the most room, so they gave him a Grand Am, an Impala, and a Camry. He said as soon as he sat in the Camry, he told the rental agency he was taking the Camry (this is after sitting in all three) So the Camry does have something about it, the level of comfort, the room, and the sitting and driving positions that does appeal to people, even who know nothing about cars.

[SableStyle]

Since the March launch of the redesigned model, Toyota has sold 205,615 Camrys, including the still-to-be-redesigned Camry Solara coupe,

186083[/snapback]

How many Solaras are contributing to this?

And how much does the Solara share with the new Camry?

And is the only reason they call it a Camry Solara anymore is so that they can put the sales figures together? Cause this gen of the Solara is nothing like any of the other Camrys.

Do they put the sales of the Matrix in with the Corolla as well?

And how will the total number of Camrys sold figure here, seeing as the Solaras are '06s and the Camrys are '07s? Are they going to count all '07s towards this figure, as well as the '06 Solara count?

Not to downplay the Camry, it's Toyota's best offering of the vehicle. And if it didn't say 'Camry' on it I'd probably like it. But adding Solara figures just seems shady because its exterior and interior have nothing in common at all. Is it common to do this to vehicles?

[Drew Dowdell]

The old camry and current solara share about as much between them as the current Impala and current Monte Carlo.

You can bet the press would have a field day if Chevy tried to count Impala and monte carlo sales together.

[Flybrian]

Sonata's rental percentage is 50%. Bet you guys didn't know that.

[Drew Dowdell]

Sonata's rental percentage is 50%. Bet you guys didn't know that.

186900[/snapback]

lies!

GM fleets everything.... even the new Escalades are rentals.

[sciguy_0504]

Sonata's rental percentage is 50%. Bet you guys didn't know that.

186900[/snapback]

I saw a lot of them when I was in Florida last week. Impalas, too. A few Calibers were being rented out by Dollar. It seemed Dollar was a loyal DCX customer but I loved our Magnum. Having that for a week made me want to buy it.

[The O.C.]

It takes no talent to give a car away.  I am shocked that nobody has picked up on the REAL part of this story: $500 over invoice?

  GASP!!!  COULD TOYOTA BE DUMPING CARS ON THE AMERICAN MARKET???

  NAY!  THE SHAME!  (Oh, wait - that's just what Toshiba, Hitachi did 35 years ago.)

  If the Camry is so great, why can they only get $500 over invoice?

  I would get fired for selling an Impala $500 over invoice.

  Oh, wait - I guess Toyota would rather pay MT, CR, etc. to give good reviews, rather than let their dealers make any money.

186355[/snapback]

Uh.....read it again....

If I remember correctly, the dealer was quoted as getting "within $500 of window sticker" not "invoice"

[The O.C.]

Sonata's rental percentage is 50%. Bet you guys didn't know that.

186900[/snapback]

Where'd you get your 50% figure?

Can you please post other makes for comparison? What's Impala? What's 500? What's Camry?

Thanks.....

[Drew Dowdell]

Where'd you get your 50% figure?

Can you please post other makes for comparison?  What's Impala?  What's 500?  What's Camry?

Thanks.....

187479[/snapback]

50% of Five hundreds are still sitting on the lots.

[regfootball]

lies!

GM fleets everything.... even the new Escalades are rentals.

186902[/snapback]

I think I'd believe fly here, I see assloads of new Sonatas with the big green E on the back.

[regfootball]

50% of Five hundreds are still sitting on the lots.

187510[/snapback]

sure because they have no motor and Ford is keeping them to 10-15% fleet.

they still have the taurus to whore out to fleets.