xcel
10-13-2006, 09:37 PM
Toyota fears bigger ute is, well, too big. (http://www.autoweek.com/apps/pbcs.dll/article?AID=/20061013/FREE/61011008/1041/TOC01ARCHIVE)
Mark Rechtin - Automotive News - Oct. 13, 2006
http://www.cleanmpg.com/photos/data/501/Toyota_Sequoia3.jpg
Toyota Sequoia 4WD (EPA 15/17) - To big to handle.
Sales of the Toyota Sequoia SUV are on the wane for the 4th straight year. More unsettling, Toyota is worried that the redesigned 2008 model may be too large.
Sequoia sales - Model Year|Units Sold
2006 (9 mos.)|25,373
2005|45,904
2004|58,114
2003|67,067
2002|70,187
LOS ANGELES - Toyota's first-generation Sequoia was dinged for being smaller than other large SUVs. Now some Toyota executives fear that a much bigger Sequoia, which arrives next fall, swung too far the other way.
Sales of big SUVs are shrinking, and for more reasons than expensive gasoline. The bigger-is-better fad has passed, executives say. And the bigger Sequoia may arrive just as the party lets out.
"I worry about the Sequoia being too big and not having enough fuel economy, more than I do with the (redesigned) Tundra," said Don Esmond, senior vice president of automotive operations at Toyota Motor Sales U.S.A. Inc.
A driver of a full-sized pickup "won't worry about getting two miles per gallon less, if it's the only thing that can haul his work gear," Esmond said. "But there are a lot of choices besides an SUV for hauling your kids to soccer practice."
The Sequoia is based on the Tundra platform, although it has a different frame and a shorter wheelbase and overall length. The redesigned 2007 Tundra has grown considerably, and Toyota insiders say the redesigned Sequoia will grow similarly.
Some Toyota managers, who declined to be identified, worry that the automaker overcompensated for the current Sequoia, which was seen as too small.
Chunk of factory
The problem for Toyota is that Sequoia production takes up a big chunk of its Princeton, Ind., factory, where Tundras also are made. But Toyota is preparing its San Antonio Tundra-only plant, anticipating more volume. If demand for the new Tundra falls short, the Sequoia must pick up the slack in Princeton.
If a fuel crunch hurts sales of both products, that could present a rare problem for Toyota: overcapacity. When that happens, either the factory is unprofitable, or the sales arm has to increase incentives to move the metal. For Toyota, neither option is acceptable.
Company officials declined to give specifics about the Sequoia's 2008-model redesign or its sales targets.
The 2007 Sequoia's base sticker price, including shipping, is $33,805. The V-8-powered truck gets 18 mpg on the highway and 15 in the city.
The large-SUV market, which floated in the 600,000-plus-unit range during its boom years, will decline to slightly more than 500,000 units this year, according to Toyota internal estimates.
Fading glamour
Toyota research shows that the "glamour aspect" of the large-SUV boom is waning, as those buyers move on to the next trend, says Ernest Bastien, vice president of Toyota's vehicle operations group.
"Single people didn't need full-sized SUVs, but they wanted them," Bastien says. "Hummer exploited that. For a while, the buyer mentality was that bigger is better. But economics have shown that, unless you really needed the vehicle, you may not really want to drive it."
In 2001 and 2002, Toyota had a 9.8 percent share of the combined large- and premium-SUV market from its Sequoia, Land Cruiser and Lexus LX 470.
But sales have slowed as its products have aged. Toyota's share has skidded to 6.4 percent so far this year. Through September, the entire segment's sales have fallen to 499,095 units, down from 598,534 units for the same period last year.
Mark Rechtin - Automotive News - Oct. 13, 2006
http://www.cleanmpg.com/photos/data/501/Toyota_Sequoia3.jpg
Toyota Sequoia 4WD (EPA 15/17) - To big to handle.
Sales of the Toyota Sequoia SUV are on the wane for the 4th straight year. More unsettling, Toyota is worried that the redesigned 2008 model may be too large.
Sequoia sales - Model Year|Units Sold
2006 (9 mos.)|25,373
2005|45,904
2004|58,114
2003|67,067
2002|70,187
LOS ANGELES - Toyota's first-generation Sequoia was dinged for being smaller than other large SUVs. Now some Toyota executives fear that a much bigger Sequoia, which arrives next fall, swung too far the other way.
Sales of big SUVs are shrinking, and for more reasons than expensive gasoline. The bigger-is-better fad has passed, executives say. And the bigger Sequoia may arrive just as the party lets out.
"I worry about the Sequoia being too big and not having enough fuel economy, more than I do with the (redesigned) Tundra," said Don Esmond, senior vice president of automotive operations at Toyota Motor Sales U.S.A. Inc.
A driver of a full-sized pickup "won't worry about getting two miles per gallon less, if it's the only thing that can haul his work gear," Esmond said. "But there are a lot of choices besides an SUV for hauling your kids to soccer practice."
The Sequoia is based on the Tundra platform, although it has a different frame and a shorter wheelbase and overall length. The redesigned 2007 Tundra has grown considerably, and Toyota insiders say the redesigned Sequoia will grow similarly.
Some Toyota managers, who declined to be identified, worry that the automaker overcompensated for the current Sequoia, which was seen as too small.
Chunk of factory
The problem for Toyota is that Sequoia production takes up a big chunk of its Princeton, Ind., factory, where Tundras also are made. But Toyota is preparing its San Antonio Tundra-only plant, anticipating more volume. If demand for the new Tundra falls short, the Sequoia must pick up the slack in Princeton.
If a fuel crunch hurts sales of both products, that could present a rare problem for Toyota: overcapacity. When that happens, either the factory is unprofitable, or the sales arm has to increase incentives to move the metal. For Toyota, neither option is acceptable.
Company officials declined to give specifics about the Sequoia's 2008-model redesign or its sales targets.
The 2007 Sequoia's base sticker price, including shipping, is $33,805. The V-8-powered truck gets 18 mpg on the highway and 15 in the city.
The large-SUV market, which floated in the 600,000-plus-unit range during its boom years, will decline to slightly more than 500,000 units this year, according to Toyota internal estimates.
Fading glamour
Toyota research shows that the "glamour aspect" of the large-SUV boom is waning, as those buyers move on to the next trend, says Ernest Bastien, vice president of Toyota's vehicle operations group.
"Single people didn't need full-sized SUVs, but they wanted them," Bastien says. "Hummer exploited that. For a while, the buyer mentality was that bigger is better. But economics have shown that, unless you really needed the vehicle, you may not really want to drive it."
In 2001 and 2002, Toyota had a 9.8 percent share of the combined large- and premium-SUV market from its Sequoia, Land Cruiser and Lexus LX 470.
But sales have slowed as its products have aged. Toyota's share has skidded to 6.4 percent so far this year. Through September, the entire segment's sales have fallen to 499,095 units, down from 598,534 units for the same period last year.