Toyota Retreats From Full-Size Pickup Truck Sales War, Tables Diesel Tundra

Last June, as the market for full-size trucks tanked in response to high gas prices, Toyota shocked the auto industry by announcing that for $20,000 over base price buyers could purchase the full-size Tundra pickup, the midsize Tacoma pickup or the FJ Cruiser SUV with additional power and abysmal fuel economy.

Jim Lentz, president of Toyota Motor Sales U.S.A., told Automotive News today that despite its recent zero-percent financing deals, Japan's No. 1 automaker is not going to engage Chevrolet, Ford and Dodge in their full-sized pickup sales war.

"I don't want to get stuck in the middle of Ford and Chevy battling for the No. 1 truck this year, and Dodge launching the Ram," Lentz said in an interview.

Chevrolet sold 50,428 Silverados last month, off just 3.9 percent in a plummeting segment that saw Tundra, Motor Trend's 2008 Truck of the Year, fall 60.7 percent, the Ford F-150 drop 41.6 percent and Dodge Ram off 30.9 percent.

Toyota had hoped to sell about 20,000 Tundras a month this year; September sales were just 7,696 units.

Lentz said part of the decline was an abbreviated 2008 model year from its Texas and Indiana truck plants that were temporarily shut down. With a segment forecast to be as low as 1.5 million trucks--down from a peak of 2.5 million--the pickup fight could get desperate.

Development of a diesel-engine variant of the Tundra has been tabled, Lentz reportedly told Automotive News. While the diesel has not been canceled outright, Toyota is studying whether it makes sense to enter such a small segment.

That's a big step back from Toyota telling dealers at the National Automobile Dealers Association convention last year that a diesel would arrive by 2010 or 2011.

Posted by

Scott Doggett October 7, 2008, 10:18 AM

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Chevrolet, Diesel, Dodge, Ford, Fuel Economy, General Motors, Toyota