Initial trading patterns for the all-new 2007 Toyota Tundra suggest a strong start for this model in the domestic-dominated large pickup segment, according to real-time retail transaction data from the Power Information Network (PIN), a division of J.D. Power and Associates.
Since the all-new 2007 Toyota Tundra large pickup was launched in early February, owner loyalty for this model, which represents the percentage of Toyota Tundra owners who traded for another Tundra, is 53 percent (February only) -- more than twice the January rate of its predecessor and more than 20 percentage points higher than in February of 2006. Additionally, trading from the Toyota Tundra to each of the mainstream domestic large pickups (Chevrolet Silverado 1500, Ford F-150, Ram 1500) dropped considerably in February when compared with January, while trading in the reverse direction increased.
Nevertheless, owners of domestic large pickups remained relatively loyal to their vehicles. According to PIN data, both the Silverado 1500 and F-150 experienced owner loyalty increases of 4 percentage points when comparing transactions in February to those in January, while the Ram's owner loyalty remained steady. (Loyalty for the Titan is not included since it has only been on the market for three and one-fourth years.)
The combination of increased Tundra loyalty and steady domestic model loyalty raised the large pickup segment share of industry from 12.4 percent in January to 14.4 percent in February.
"It's still early, and owner loyalty is just one measure of marketplace success, but so far the Toyota Tundra seems to be gaining strength in the segment," said Tom Libby, senior director of industry analysis at PIN. "This is an interesting scenario because the impressive strength of the Toyota juggernaut is being pitted against the domestics' long-time stronghold."
The Toyota Tundra's owner loyalty rose in February even though it sold at a higher average retail transaction price than any of its direct competitors. The actual retail transaction price for the all-new 2007 Toyota Tundra in February was $33,182 -- almost $900 more than the Ford F-150 ($32,312) and $1,450 more than the Chevrolet Silverado 1500 ($31,727). The Dodge Ram 1500 ($25,564) and the Titan ($27,664) both sold at prices considerably below the competition.
Four of five large pickup models sold with loans that included an annual percentage rate (APR) between 9 and 11 percent, while the Ford F-150's APR was far below the competition at slightly more than 7 percent. The monthly payment for these models, purchased with a 72-month loan, ranged from $558 to $603.
"New products and stable fuel prices will drive a strong rebound in the large pickup segment in 2007, increasing from 13.5 percent of the total sales market in 2006 to 14.2 percent," said Jeff Schuster, executive director of automotive intelligence at J.D. Power and Associates. "Toyota dove head first into a very competitive segment with a solid entry, and although the model lineup is not yet as robust as the competition, we expect the Toyota Tundra to nearly double in volume from 124,508 in 2006 to 210,000 in 2007."
PIN data also indicates that while the national transaction price for the 2007 Toyota Tundra was the highest in the competitive set, the Tundra did not sell at the highest price in every region of the country. Specifically, the Toyota Tundra commanded the highest transaction price in the Midwest, Southwest and West, but its price was second highest in the Northeast (after the F-150) and third in the Southeast (after the Silverado 1500 and F-150). Additionally, the Toyota Tundra's price ranged from a high of $34,394 in the West to a low of $32,796 in the Southwest. Transaction prices in the Southwest for each of the five large pickup models were lower than in any other region, reflecting the fierce competition in large pickups in this particular part of the country.
About Power Information Network (PIN)
PIN's automotive solutions are based on the collection and analysis of daily new- and used-vehicle retail transaction information from more than 10,000 automotive dealership franchises in North America. PIN's industry-leading automotive solutions incorporate consumer demand and sales information to improve business for automotive dealers, manufacturers, lenders, and other companies in the industry. Additional information is available at www.powerinfonet.com
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies:
Founded in 1888, The McGraw-Hill Companies (NYSE:MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional information is available at http://www.mcgraw-hill.com/
No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate
Source: Power Information Network
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