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Tundras to Take on Big Three? Maybe Not.

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Old Feb 21, 2006 | 09:33 PM
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Default Tundras to Take on Big Three? Maybe Not.

Very interesting article, must read!
http://global.forbes.com/columnists/...0221flint.html

Toyota's new model, which it will build at a new Texas plant starting this fall, as well as in Indiana, is a true competitor. The new Tundra lineup offers many choices: three engines, a six speed automatic transmission, three body styles and 10,000 pounds towing capacity. It's a good pickup, but it won't become America's best-selling big truck.

Why am I so sure?

The additional new plant gives Toyota the capacity to make 300,000 Tundras a year. Ford (nyse: F - news - people ) sold 900,000 big pickups last year and General Motors (nyse: GM - news - people ) almost 1 million Chevrolet Silverado and GMC Sierra models. Even if its new truck is a huge success, Toyota would need three more new factories to equal either Ford or GM's capacity, and that's not happening in my lifetime.
...of course, Jerry Flint looks about 90 years old, his lifetime might not be THAT long!
Old Feb 21, 2006 | 10:46 PM
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What makes it significant is that while Ford and GM DO sell that many trucks each year, they are selling less and less of everything else, whereas Toyota is increasing in every category, including trucks. So, yes, while we may not be selling as many trucks as Ford and GM, we WILL be selling 250,000 more vehicles, and they won't.

It's only a matter of time before GM goes bankrupt anyhow (unless the government bails them out), and we'll have to see what happens then.

I think that Flint will be around to see that.
Old Feb 21, 2006 | 11:01 PM
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Read through Flints past articles and you will see that he strongly believes that GM nor Ford are going banko anytime soon. In fact, he thinks they never will. Interesting.

It probably takes 2-3 years to build a new factory from scratch. Maybe Flint plans on kicking the bucket in a couple years, eh?
Old Feb 22, 2006 | 02:25 AM
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We are not out to build hundreds of thousands of Tundras to compete with production numbers,we just want to build the better truck!
Old Feb 22, 2006 | 04:03 AM
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Well, I would have to disagree... I think that Toyota wants BOTH -- high volume of a better product -- WITH fat profit margins!
Old Feb 22, 2006 | 05:48 AM
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We DO want both - more product AND better profit margins. The more trucks we sell, the more we force the domestic companies to build a better product, and since they aren't set up for that, we can continue to take their market share.

Here's another article that disputes the no-banko mindset pretty hard:

http://money.cnn.com/magazines/fortu...9111/index.htm

(FORTUNE Magazine) - It is the instinctive wish of most American businesspeople, even those unlikely to be directly affected, that General Motors not go bankrupt. True, some people will say, "They had it coming to them." But the majority will be more practical, telling themselves that the company is so central to the economy, so sprawling in its commercial reach, that bankruptcy--"going into chapter," as restructuring folks say--is ominous almost beyond contemplation. And yet the evidence points, with increasing certitude, to bankruptcy. Rick Wagoner, GM's 53-year-old chairman and CEO, may say, as he did in a January interview with FORTUNE in his aerie of an office high above the Detroit River, "I know that things will turn around." But he cannot know that. He may not, deep down, even believe it himself.
Old Feb 22, 2006 | 12:08 PM
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I can see it now .......right under my medicare tax
Ford/GM Tax
Old Feb 22, 2006 | 01:56 PM
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I LOVE IT!!! that was funny!!!

wait..... what if it happenes???
Old Feb 22, 2006 | 01:58 PM
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"I know that things will turn around."

Only turnaround will be a full 360.

Ford at least hase some qaulity although little style.
Dodge at least has style though less quality.

Chevy weak style and quality. I'm not sure how they have maintained market share this long. Fanatical loyalists I guess.
Old Feb 22, 2006 | 03:53 PM
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GM has better quality then Ford.
Old Feb 22, 2006 | 04:28 PM
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Originally Posted by Anonymous
GM has better quality then Ford.
That depends on what car/truck u r talking about
Old Feb 22, 2006 | 04:43 PM
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**** Ford vs. Chevy:MY BAD

Tundra more reliable than both! Any challengers refer to consumer reports.
Old Feb 22, 2006 | 05:51 PM
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Originally Posted by scholarbb
Dodge at least has style though less quality.
What Daimler-Chrysler has that neither Ford nor GM have is PROFIT. They actually made money last year, and didn't hemmorhage cash all over the place.

Now, granted, Toyota made more than the top 12 OTHER auto makers COMBINED, but that's just tooting our own horn, isn't it?
Old Feb 23, 2006 | 05:33 AM
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Originally Posted by scionlife
Well, I would have to disagree... I think that Toyota wants BOTH -- high volume of a better product -- WITH fat profit margins!
Just on the truck side there is no way we can compete with the volume of say..Ford. But if we build a more quality truck with low volume what looks better?Along with a profit!We didn't need "employee pricing" or" family and friends pricing" to make it this year.
Old Feb 23, 2006 | 12:27 PM
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Dodge formerly our worst of the big 3-bought out by a foriegn group-now only profitable of big 3. Few consumer goods are being produced in america now. NAFTA may have increased company's profit margins and consumer's buying power: but eventually the rest of the world is going to decide the dollar is toilet paper. Then we won't have production or buying power. I now that sounds pessimistic but its where I see the american economy going. If anyone wants to "explain how" this is'nt going to happen: I'm all ears.
Old Feb 23, 2006 | 05:23 PM
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I agree. And with deficit spending like it is. In the 'not so far' future, a load of bread will cost $100. There will be such a huge disparity of the classes (high, low) that I wouldn't doubt if a depression is on the way. But hey, I am an engineer, what do I know about economics..hopefully I am wrong..LOL.
Old Feb 24, 2006 | 06:45 PM
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Originally Posted by scholarbb
"I know that things will turn around."

Only turnaround will be a full 360.

Ford at least hase some qaulity although little style.
Dodge at least has style though less quality.

Chevy weak style and quality. I'm not sure how they have maintained market share this long. Fanatical loyalists I guess.
Somewhat a preference thing on some of that. IMO ford has all the "style" of a cup of vanilla icecream... Dodge has guts maybe.. but the ugliest cars on earth as far as I am concerned.. they did good with the big ugly grill on one truck now they think it belongs on every car they make. As far as quality.. given my experience and the constant info I get via my dads shop.... Fords electrical systems are somewhat better than GMs.. GM is marginally more mechanically sound than Ford.. and Dodge is just sucking bottom on both (they have NEVER made a good tranny or diff IMO).

GM needs to get out of the rut on their car styling.. but I am liking what they are doing with thier trucks... And the caddys have been getting better and better looking IMO.

but they all need to get off thier @$$es and start tyring to gain some ground.

I think GM introducing the 2007s already is the dumbest thing I have ever seen. I LOVE the new Tahoe... but why instantly downgrade the market for the 06 models by introducing the 07? I doubt the 06 was doing terrible enough to warrant that. But hey.. I dont know everything they were thinking either.
Old Feb 26, 2006 | 10:16 PM
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Maybe by introducing the 07's theyre really trying to save thier a$$es from (toyota overtaking them in sales and) thier loss of money this year. Also theyre really trying to push the e85 fuel to try to get thier stuff up as well, stating thier "1.5 million vehicles on the road now are compatible." Yeah its probably a downright shame that the government probably wont let them go bankrupt...they really need to experience it in order for them to do a major turn around.
Old Feb 27, 2006 | 03:41 PM
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I would say that Toyota doesn't necessarily have the goal of being the number one truck. However, I'm sure their goals include a steady increase in market share over the coming years. They want to offer more choices in the vehicle market that will encourage more customers to buy a Toyota. If they happen to eventually become the best seller, I'm sure they won't be upset. They didn't have a goal of having the best selling car when the Camry was introduced 20 years ago, but look what happened!
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