Domestic's Prepare for More Pickup Truck Segment Competition

Washington DC November 7, 2006; The AIADA newsletter reports that as Toyota prepares to open the doors to its $850 million, 2.2-million-square-foot Tundra plant in San Antonio all eyes will be on the pickup capital of the world as the Japanese automaker looks to shake up things in the Detroit stronghold.

In a Detroit News interview with reporters Monday, GM Vice Chairman Robert Lutz acknowledged the quality lead Japanese automakers took between 1979 and 1981 when Toyota and Honda Motor Co. were building better quality vehicles..."they'll do well," said Lutz of Toyota's Tundra, "but the competition will be tough".

GM, Ford Motor Co. and Dodge parent DaimlerChrysler AG's Chrysler Group accounted for about 90 percent of the 2.5 million vehicle full-size pickup truck market last year, led by GM's 935,000 unit sales and Ford's 901,000.

Toyota Senior Vice President Don Esmond, in September, told the News that Toyota wants to double Tundra volume with the 2007 model. Sales of the current Tundra rose 17.1 percent in October, to just over 10,000 units.

"We've been competing with Ford, GM and Dodge for 50 years," Toyota's Morrissey said. "We know the full-size market is very loyal and smart.

Once they get familiar with the Tundra, get to know it, I think they will consider it. Loyalty is definitely key in this market, but it will only get you so far."