Toyota set to cut truck production in U.S.

[andy82471]

Toyota set to cut truck production in U.S.

PrintE-mailDisable live quotesRSSDigg itDel.icio.usBy Chris Oliver, MarketWatch

Last Update: 11:42 PM ET Sep 12, 2006

HONG KONG (MarketWatch) -- Toyota Motor Corp., Japan's leading automaker, is set to lower its U.S. production target for some vehicle models because of higher fuel prices and concerns the economy could slow, according to a media report Wednesday.

Toyota is considering trimming production at its new pickup truck assembly plant in Texas, the Japanese newspaper Asahi Shimbun reported.

The plant, scheduled to open in November, has an annual capacity of 200,000 units, but Toyota is targeting to make 150,000 pickups in 2007, the report said.

Toyota will double its orders for passenger cars to 200,000 from Subaru of Indiana Automotive Inc., the U.S. production subsidiary of Fuji Heavy Industries Co., from October 2007, the report added.

Separately, a Toyota spokesman said the U.S. division did not expect 10% to 12% sales growth in 2007, a level consistent with growth rates in recent years, according to reports.

Although not formal target was given the spokesman said the automaker was expecting U.S. sales growth more along the lines of 3% to 5%, according to a Reuters report.

Toyota's U.S. sales are reported to have risen 11% this year.

Toyota is on track to surpass General Motors as the world's largest automaker by volume next year.

http://www.marketwatch.com/News/Story/Stor...hoo&siteid=yhoo

Edited September 13, 2006 by andy82471

[chevelle454]

Won't here this on the evening news.

[andy82471]

Won't here this on the evening news.

192908[/snapback]

HA HA HA Yep.

But seriously the new truck isn't even out yet and already they are talking about production cut. I thought this truck was suppose to take the market by storm. Wonder if the real truck buyers are not taking this truck seriously ?

[PurdueGuy]

up to 200,000 to be built at Subaru, eh? The factory is about a mile & a half from here - this is good news for the local economy.

[regfootball]

the new GM trucks have them concerned.

that, and they'd rather only recall 150,000 vehicles rather than 200,000

Edited September 13, 2006 by regfootball

[Newbiewar]

Won't here this on the evening news.

192908[/snapback]

your right... more along the lines of... FORD CUTS 1/3 of white color... in other news... toyota is selling more tundras then they want to...

[CARBIZ]

Nice little dig at the end that Toyota is expected to surpass GM next year in sales volume. Didn't they predict last year that it would be this year? With GM's sales in South America, China and Europe doing okay, I don't think over all sales numbers are dropping that much.

I don't necessarily think that Toyota being #1 in the world is a forgone conclusion - not just yet. The Aura, '08 Malibu and the new Silverado/Sierra may help win the war yet.

[Hudson]

  I don't necessarily think that Toyota being #1 in the world is a forgone conclusion - not just yet.  The Aura, '08 Malibu and the new Silverado/Sierra may help win the war yet.

None of those will go far to help GM's global numbers.

[CARBIZ]

It isn't GM's global numbers that are the problem - it is GMNA where Toyota is growing like a weed. GM is #1 in Brazil ( a growing market) and China (a fast growing market). It is holding its own in Europe. Toyota does not do well in any of those markets.

And how is shoring up the 900k+ units of pick ups that GM sells not going to help her global numbers? Wouldn't a 300k unit hit with the '08 Malibu help things? What if the Aura did sell 100k + next year?

I know it is just a hiccup now, but Toyota has hit a couple speed bumps, just when the General seems to be (finally) getting its act together. I see light in the tunnel.

(And, no, it isn't the oncoming train!)

[sciguy_0504]

I read somewhere recently that Toyota did tons of market research for the upcoming Tundra. If I remember correctly, they discovered Dodge owners were the least loyal of the Big 3 truck manufacturers, a little more than 50% of F150 owners would never consider buying another brand and some 60-65% of current Tundra owners used to own a GM. I'm going to look back to see if I can find the link.

[CARBIZ]

Well, considering GM used to have 50% market share, and very recently had 35%, it wouldn't be hard to find a current Toyota owner who USED to drive a GM! And until the last generation Rams came out in 1994, Dodge was a historic also-ran in the pick up market. Ford and GM didn't even consider Dodge competition until the '94 model year. Relying solely on looks and a slick marketing campaign (anyone in the RenCen listening?), Dodge ratcheted up their sales and market share in the truck market, just as that market was starting to explode.

[Polish_Kris]

Well, considering GM used to have 50% market share, and very recently had 35%, it wouldn't be hard to find a current Toyota owner who USED to drive a GM!  And until the last generation Rams came out in 1994, Dodge was a historic also-ran in the pick up market.  Ford and GM didn't even consider Dodge competition until the '94 model year.  Relying solely on looks and a slick marketing campaign (anyone in the RenCen listening?), Dodge ratcheted up their sales and market share in the truck market, just as that market was starting to explode.

193059[/snapback]

The Dodge truck was a hit because of it's fresh looks, while range of engine choices, and something new, and I believe it was priced more reasonable than what GM and Ford wanted for theirs... we have to wait and see, if Toyota's new Tundra will become the breakthrough that will get the big three to $h! their pants... or if it will be a flop like the Titan...

[Hudson]

It isn't GM's global numbers that are the problem - it is GMNA where Toyota is growing like a weed.  GM is #1 in Brazil ( a growing market) and China (a fast growing market).  It is holding its own in Europe.  Toyota does not do well in any of those markets.

  And how is shoring up the 900k+ units of pick ups that GM sells not going to help her global numbers?  Wouldn't a 300k unit hit with the '08 Malibu help things?  What if the Aura did sell 100k + next year?

  I know it is just a hiccup now, but Toyota has hit a couple speed bumps, just when the General seems to be (finally) getting its act together.  I see light in the tunnel.

(And, no, it isn't the oncoming train!)

GM's global numbers are exactly the problem. Toyota is growing FASTER than GM in world even removing North America. Toyota is growing in China faster than GM (even if GM currently has a wide lead). Toyota is growing in Eastern Europe and Western Europe, two areas where GM is stagnant.

In North America, the Malibu isn't going to rival the Camry for top spot anytime soon (even the 2008 model). GM's trucks aren't going to grow faster than the Tundra...I don't see GMT900 growing by 200,000 units in the next two years but I do see the Tundra gaining those numbers. Toyota is adding capacity in North America while GM is reducing it. And from my experience in the Aura, I don't see it being a breakout hit (100k is possible, but largely at the cost of other GM products).

GM "getting its act together" seems like smoke and mirrors from my perspective. I think Toyota will rival GM's size globally by 2009 or 2010, but if things work out the way they seem, it could be sooner.

[Polish_Kris]

And from my experience in the Aura, I don't see it being a breakout hit (100k is possible, but largely at the cost of other GM products).

193131[/snapback]

Same impression I got with the Aura when I had a good look at it, inside and out, it's a nice car, but not ground-breaking... also not ground-breaking when it comes to price, 24,000 CDN$ as a start, for a domestic sedan trying to steal import buyers? If you are going to sell a mediocre "this is the best we can do" family sedan, first drop the price to like 21,000 CDN$, and offer more standard features, besides a V6, of which most clue-less buyers will not know what the difference between a 4 cyl Accord or Camry, and an Aura with a V6 engine. People shop with how much the car costs, what it's fuel economy is, is it reliable, and how much money I will get back for it when I want to trade it in for another car or sell it in a few years from now. This is why Honda and Toyota are selling their cars very well, for those reasons...

Resale value

Reliability

Reputation

Fuel Economy

[CARBIZ]

If I sell two cars this year and 4 next, then my sales just went up 100%, no? If GM is up 3% and Toyota up 10%, in absolute numbers, GM is still ahead. Of course, over time the compounding of Toyota's larger percentage gains will catch up, but the blemishes appearing on Toyota's reputation can't be ignored by their legions of supporters in the media much longer.

Those of us who SELL both brands can see there is no clear superiority of the Japanese product, other than they have succeeded in convincing influential media types that they are. Now that the blisters are starting to fester, well, eventually even CR will have to admit something is up.

With GM's new warranty, it gives us a "money where your mouth is" bragging rights which should further dent Toyota's armour.

It is certainly POSSIBLE that Toyota could over take GM in the next two or three years, but is it PROBABLE? I don't believe so, but I guess in two years we can have this conversation again, eh?

[Hudson]

If I sell two cars this year and 4 next, then my sales just went up 100%, no?  If GM is up 3% and Toyota up 10%, in absolute numbers, GM is still ahead.  Of course, over time the compounding of Toyota's larger percentage gains will catch up, but the blemishes appearing on Toyota's reputation can't be ignored by their legions of supporters in the media much longer.

  Those of us who SELL both brands can see there is no clear superiority of the Japanese product, other than they have succeeded in convincing influential media types that they are.  Now that the blisters are starting to fester, well, eventually even CR will have to admit something is up.

  With GM's new warranty, it gives us a "money where your mouth is" bragging rights which should further dent Toyota's armour.

  It is certainly  POSSIBLE that Toyota could over take GM in the next two or three years, but is it PROBABLE?  I don't believe so, but I guess in two years we can have this conversation again, eh?

If GM sales are up 200,000 units globally and Toyota's sales are up 500,000...those are the kinds of numbers I'm talking not just percentage gains but actual volume improvements over the other.

And I'm sure we'll discuss this topic again. And I'm just as sure that Toyota will narrow the gap to nil within two years or so as you are that Toyota can't possibly rival GM in that time frame.

[regfootball]

If I sell two cars this year and 4 next, then my sales just went up 100%, no?  If GM is up 3% and Toyota up 10%, in absolute numbers, GM is still ahead.  Of course, over time the compounding of Toyota's larger percentage gains will catch up, but the blemishes appearing on Toyota's reputation can't be ignored by their legions of supporters in the media much longer.

  Those of us who SELL both brands can see there is no clear superiority of the Japanese product, other than they have succeeded in convincing influential media types that they are.  Now that the blisters are starting to fester, well, eventually even CR will have to admit something is up.

  With GM's new warranty, it gives us a "money where your mouth is" bragging rights which should further dent Toyota's armour.

  It is certainly  POSSIBLE that Toyota could over take GM in the next two or three years, but is it PROBABLE?  I don't believe so, but I guess in two years we can have this conversation again, eh?

193310[/snapback]

GM 100k wty

Suzuki 100k

Hee-YOON-DIE 100k

KIA 100k

MITSUBISHI 100k

WHERE ARE you TOYOTA?

Edited September 14, 2006 by regfootball