Toyota to Cut Pickup and SUV Production at 2 U.S. Plants

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by C.RICKEY HIROSE, Mar 15, 2008.

  • by C.RICKEY HIROSE, Mar 15, 2008 at 2:29 PM
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    C.RICKEY HIROSE New Member

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    Even the Mighty and effective Toyota can not go against the tide of near recession and rising gas prices to sell these vehicles.

    I guess Toyota has to use its "Flex Production" methodology to produce different models in its Tundra and Sequoia assembly lines. The Yen vs $ US hit all time high
    of Y98 against the $US. Higher the Yen vs Dollars, bigger the impact for Toyota's coffin.. Build more abroad ( Especially USA ) than Japan for sustained profitability.

    Tokyo, Mar 14, 2008 (Jiji Press) - Toyota Motor Corp. <7203> will start reining in production of pickup trucks at its Texas and Indiana plants due to sluggish sales amid high gasoline prices and a slowdown in the U.S. economy, officials said Thursday.

    Toyota will disclose its production adjustment plan, to be implemented in late spring, to employees at the two plants and suppliers by the end of this week, the officials said.

    Toyota will curb the production of the Tundra pickup truck, manufactured at both plants, as well as the Sequoia sport-utility vehicle, assembled at the Indiana plant.

    The top Japanese automaker will consider whether to expand the scope of production adjustment by monitoring developments in the U.S. automobile market. The firm has no immediate plan to lay off employees.


    By Jiji Press, (c) Jiji Press
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Comments

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by C.RICKEY HIROSE, Mar 15, 2008.

  1. jayman
    Well, it's a sign of the times. Actually, I think the new Tundra and Sequoia are fine vehicles. A co-worker just traded his 2006 Range Rover HSE for a 2008 Toyota Sequoia Platinum, the test drive convinced him on the spot
  2. Godiva
    If the demand goes up....I wonder if they'll start producing the Prius in the U.S.

    Don't they already produce the Cambrid in the U.S.?

    I imagine demand for both is going to go up the higher gas prices go.
  3. galaxee
    1. good.
    2. at least they're reacting to the current state of affairs.
  4. JimN
    At least Toyota should be able to find something that sells to build in their American factories.
  5. HardCase
    I recently purchased a very basic Toyota Tacoma......4 cylinder, 5speed manual, 4wd, no bells or whistles, and a "regular cab" instead of the extended or double cab. Even though Tacos are Toyota's "economy" trucks, this one is only rated at 21mpg, so a gas-guzzler relative to the Prius, but fairly economical as pickups go. I'm doing a little better than that thanks to driving techniques learned behind the wheels of the Prius, and the addition of a ScanGaugeII.

    I can't believe it, since getting mine (just a couple of weeks ago) I've noticed dozens of Toyota trucks, and most are either older Tacos, or newer Tundras, and most of those are the "big" variants, V8s, extended cabs, etc. What makes little sense to me is the "why?" of these monsters. I suppose a true farmer or rancher or builder might truly need a large truck, but most of these are basically the Montana version of a yuppie SUV. The smaller and very basic Taco (or something similar) will do everything 95% of truck owners would ever need to do with their truck. Hopefully Toyota will come out with a hybrid version in the not-too-distant future. Meanwhile, I am hopeful that market forces will turn not just Tundras, but all large pickups and SUVs into a modern day version of what they truly are.....dinorsaurs deserving of extinction.
  6. jayman
    I'm just wondering if the profit margin on the Toyota Taco's, Tundra's, and Sequoia's are like the Big Three margins on similar vehicles? That is, if the higher profits from the Tundra's and Sequoia's are used to fund further research into next generation hybrids?
  7. donee
    Hi All,

    Well every problem is an oportunity in disquise. Would it not be neet if Toyota used that production space to make 3rd Gen Prii, and shipped em to Europe !?
  8. statultra
    we have a 2006 tacoma double cab v6 prerunner, we got it for utilitarian work, most people buy these huge trucks for no reason, but since we do a lot of load carrying activities, ( moving from NJ to FL, yard work, concrete, minor construction ) its a worthwhile purchase.

    anyway we paid 14,500 for it brand new 5 miles because it was flooded. but its a toyota, so it runs just like it should
  9. jayman
    Is that the 4.0 V6? I like that motor, very nice in my FJ
  10. sandman
    Yes they do make the camry hybrid at Georgetown, Kentucky .
  11. hill
    I believe the "Why" Toyota now makes giant trucks is simple: Marketing

    There's a ton more profit in vehicles that weigh a ton more. Problem is, gas is getting more scarce, ergo, its cost continues to spiral ever upward. As your guestimate states, 95% (or more, I believe) can get by with smaller SUV's & PU's but rather than simply RENT one on that 1 day out of 365, marketing is used to NOT convince consumers of that fact. In fact you can bet the Large Volume Manufactureeers would freik, if such gas-guzzler ads were made manditory.

    Toyota sees SOME market for guzzlers, and doesn't want to leave a market to GM, if there IS one, so in some small (illogical) way, they are compelled to follow suit ... just in case fossle fuel ever becomes (in comparison to what it is & how it's getting) virtually free again. This is the only reason GM is trying to slap the Volt together ... because GM doesn't want to leave an entire market to Toyota.
  12. HardCase
    I remember reading back in the late 80s or early 90s when SUVs first began to become popular/mainstream that the manufacturers made something like $3000-5000 more per vehicle on SUVs versus what they could make on a regular car or pickup. So yeah, I'm sure that's the case.

    Hey, just for kicks I changed my avatar to a pic of the Taco, and over on the Tacoma forum I have a picture of the Prius as my avatar.
  13. C.RICKEY HIROSE
    There is, as a matter of fact, A big Profit in that segment!
    Yes the profit is in the Big Trucks and Suv's. Once I knew a Ford factory rep and he used to tell me, Toyota has to comeout with big Trucks and Suvs 'cause that is where the Big money is. He mentioned that each Truck or Suvs delivered to its dealers, Ford makes $10K profit per each big Suv or Truks!
  14. hill
    Hi HardCase,
    Hey, I recognize your house too! It's pretty cool btw. How funny. As Hirose-san says ... SUV's mean BIG profits. THIS example will REALLY blow you away. Since we used to have a gas guzzlin' Range Rover (that we traded in for our SUV hybrid), we are on the Range Rover Mission Viejo Dealership's mailing list. Their most recent mailing is regarding their "Discounts" on their land boats (mind you some cost near 100k and I'm figuring discount means they're willing to simply forgo this amount that is normally profit). Anywho, the "discounts" range from $15K to $20k !! WOW. Now THAT's a profit !!
    I should post a picture ... it's just so unbelievable.
  15. HardCase
    Small world, Hill, yeah, it's on 1st Ave. E. over by the courthouse. I love the East Side of town. And funny, too, that you mention Mission Viejo as that is where my sister and her family lives.

    I can't even imagine a $100K vehicle. The Prius cost $23 and the Tacoma was a shade over $18, so two really nice, functional, economical (the Taco is "economical" if other pickups are used as the standard-of-measurement), vehicles that ought to last for years for less than half the cost of a Range Rover. I'd like to see a picture of a $100K SUV.
  16. GoCarGo
    Unfortunately for us Americans, it will probably take $4.50 & up per gallon gas prices for these "monster truck" owners to scale down. I've a large RAM truck and midsize SUV, but only use them when absolutely necessary. Diesel's $4 per gallon here in Metro Atlanta. Glad that a Prius is my daily driver.
  17. jayman
    A lot of it is prestige, such as the name alone. "Hey, look at me, I'm driving an HSE/LX" etc

    I test drove a Range Rover HSE a couple of years ago. This one had the - in Canada - optional luxury upgrade interior. Very comfy leather seats, almost impossible not to get comfy in. If leather, wood, and obvious hand assembly are your deal, then the HSE had it

    What else? Four wheel independent air suspension. There is a road in Winnipeg called Dugald, it runs through an industrial park. It's badly frost heaved, my Prius jumps in terror at every frost heave. The Range Rover just soaks it up and you don't feel a thing

    It has full time 4wd with many electronic aids. I really can't imagine somebody driving something as expensive and pretty as that offroad, but what do I know?

    Recently popped in at our Lexus dealership to see the new LX570. Also acres of wood and leather. Oddly enough a live rear axle, like my FJ. Adaptive suspension, full time 4wd, the new Tundra based 5.7 litre V8, etc.

    One neat thing with the LX570 is it has far more than just a backup camera system. It can be programmed to engage at low speeds, a fisheye camera in the front grille, and a camera in the passenger side rear view mirror.

    Say you're pulling out of an underground parking area. The front camera will show you the view left/right before pulling into the sidewalk/street, so you can watch for pedestrians and oncoming cars. That's neat. The right side mirror camera would be handy for parallel parking, you can see how close you are to the vehicle beside you, or the curb.

    In either case, is it worth paying $85,000-$110,000 Cdn for such a vehicle? Beats me. I sure don't think so, and I can actually *afford* such a thing. I'm pretty happy with my cutsey FJ with the plastic floor, not a stitch of carpet

    Now that I think of it, sure is easy to keep my FJ clean. I never worry about getting in with mud/slush/snow on my boots. At worst, a bucket with a sponge, 10 mins of work, and the floor looks new again
  18. hill
    Here you go ... what a pig, Eh? :
    (don't forget, this is before delivery, dealer prep, DMV fees, taxes, etc)
    [IMG]

    Actually, I meant I should post a pic of the 20 THOUSAND dollar "discount" coupon they sent in the mail ... but we already threw it out. We bought ours (6yrs ago) for less than half that used. Boy WE took a bath unloadiing this thing. Just try & get the dealer to buy it back ... lol. Talk about depreciation. Consumer Reports: (paraphrased) regarding much of the Land Rover Product: "NOT recommended" can you spell $6K tranny? Thank God it was under warranty.
    Don't EVEN get me started on the mileage ... IN THE TEENS :(
    Can you all forgive me? I'm so embarased.
  19. HardCase
    Good lord, a $100K SUV. That's more than what I paid for my house! I imagine that the "used" price for a 1 year old one might be what, in the neighborhood of $50K? I'm sure the depreciation is ungodly.

    I remember as a kid back in the 50s and 60s thinking that Land Rovers were just bigger versions of the old Universal Jeep made in England. They had a repution for ruggedness and reliability and all of the "Great White Hunters" in Africa drove them on safari. I can't see too many owners of the current crop wanting to take one down a dried up river-bed. Flagrant conspicuous consumption, what else can one say about something like that? Some people have just too much money for their own good.

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