Toyota sales (press release via earthtimes.org) declined a whopping 42 percent from last April, as the big T recorded only 126,540 unit sales last month. And the bleeding comes from all over the lineup. From bread-and-butter Camry and Corolla (down 36.7 and 42.9 percent, respectively) to the entire Lexus line (LS down 61.6 percent, GS down 70.2 and IS down 48 percent) and from trucks (Tundra down 54 percent) and SUVs (4Runner down 69.3 percent) to compacts (Scion xD sold only 880 units) it’s ugly all over. Toyota sold more Priora (8,385) than Yaris (8,118) while the RAV4 (11,126) sold better than Venza (3,793) and Highlander (5,595) put together. Other than RAV4, the only bright-ish point in an otherwise forgettable month was RX which sold 6,237 units (including hybrids) and was reportedly the top selling luxury vehicle in America last month. Total hybrid sales hit 12,223.
One word: Hyundai
Toyota might find itself wishing it had more dealerships in the numerous smaller markets.
There’s a dealer in the ATL area whose ads proclaim that they are selling Camrys (Camries?) at Corolla prices.
I saw an xD on the road last night and thought of how they’d have been better off calling it an xA.
Oh well.
Is it just me, or does it seem to be business as usual at Toyota? They stepped up some incentives, but nothing crazy like GM and/or Chrysler. They aren’t advertising any more than before, at least where I live in the Midwest. Perhaps they are holding out hoping to pick up Chrysler and GM customers as they go down the toilet? Or are they not willing to dump tons of money in advertising, etc. for little to no profit just to move cars? Will slow and steady win the race in this case? Or do they just not know what to do?
Ford sure does seem to be headed in the right direction. I hope it lasts. I may consider a Ford again even after my last Ford dealer experience which was unbelievably awful.
I was surprised to read earlier that Ford was only down 31%. How good was the year ago quarter for each company, compared to previous years?
It’s be nice to find that Ford is getting genuine traction. Are their reliability scores starting to really have an impact? Are they getting people who would otherwise be buying GM and Chrysler?
We need a deeper analysis to judge whether Ford is close to solid ground, or not.
So what exactly are the plural forms of Toyota products? Some are easy (Corollas) and others not.
It was resolved here that it’s Prius, Priora
Camrys? Camries?
Lexus Lexuses? Lexii?
GSs? Tundrae? xDs? Yarises? Yarii? Yanni? RXs which when said aloud is “our excess?”
I could be wrong here, but I think Toyota is challenged by plurals. Or is that pluralism?
4Runners are down 69%!??! Wow. Has anyone heard anything on the 2010 Redesign for the 4runner? Is that still a go or has it been scratched now?
It will be interesting to see if Toyota sales increase due to the chp 11 filing for Chrysler and possibly GM; or if their sales will continue to plummet due to weak demand and economic worries from the public.
“Doesn’t Toyota know what to do”?
They know what NOT to do. Try to purchase market share by throwing excessive amounts of money on the hoods (thereby trashing resale value).
Once the economy comes back up, Toyota will be okay.
But +1 on Hyundai…. 99% of the car for 80% of the money (or less)…. that’s a deal a lot of folks are willing to look at.
Unfortunately for my future resale values, Hyundai ARE tossing money on the hoods and I snagged a 2009 Sonata for 70% of MSRP new.
Fortunately, I’m not selling it any time soon, so I come out well ahead.
@John Horner:
But would now be the best time for expansion? New stores wouldn’t see significant sales for at least a year or two.
On a visit to a Toyota dealer in Westchester NY, I asked if they have a 2009 LE V6, I knew there is an incentive of $1500 on the car so it should be a good deal.
After a test drive, I set with the sales person to see what price they offer, it took almost one hour to discover that 2009 is not available anymore and they can offer a 2010 model that cost more and does not carry any incentives, it took 30 min more to find out how much they will give me for my trade, it was 3000$ less than what was offered to me at a Honda dealership for a purchase of a new Accord with a better price to begin with.
The whole experience, Toyota vs Honda, Honda wins big, also, just for the fun of it, get to a Toyota dealer ship and sit in a Camry, look carefully at the interior parts, they don’t match, there are unequal gaps and sharp edges, not what you’d expect from the best selling car in America.
So, it makes me feel good to see Ford and GM selling more cars than Toyota.
Toyota sales be lower than GM and Ford, but the whole picture has to be taken in. Selling a ton of cars at big losses just kills a business. Toyota is not heading to C11 like GM is headed. I would love to think Ford is going to finally get their act together. The new Ford Fusion Hybrid has gotten mostly good reviews. The 2010 Mustang has also been getting many positive reviews, but almost every review says the new Camaro will be a better vehicle.
Toyota is slowly doing what they should have done a year or so ago. The Venza shows an improved attention to design. As quality gaps get smaller, people want something with style. The Venza does not appeal to all, but it based on what I have seen there are selling (at least in California). The new Prius reviews have been very strong, we will see if it translates to sales in when it hits in June. The 2010 Camry is not a big enough change. The new 2.5 liter engine sounds like a nice improvement, but the Camry interior needs a redesign to up the quality and style. It is a very dull interior. The 2010 Corolla is dull over all. The Matrix has become to expensive for what it is and needs a much better interior. The Highlander, Tacoma, Rav4, and Sienna just need minor updates. The Avalon is nice, but with the new Genesis sedan on the market Toyota will need to bring their price down or up the value of the Avalon. All of the Toyota products need more tech. Smart iPod connections, not just a mini jack, USB ports, internal hard drives for music, and more the safety features that like the new Prius is bring to market. When it comes to tech, Toyota feels a couple of years behind most of the other major builders.
Based on the last annual Consumer Reports automotive issue, Toyota still has the edge for overall quality and value. Just look at the ten year ownership chart which shows Toyota as having the fewest problems over a ten year period. That is the reason Toyota is successful. As I stated earlier, the quality gap is getting much smaller, so Toyota is going to have to take more improve the technology offerings in their vehicles and offer some driving excitement in their product lines. Right now, the sportiest vehicle they have is a Camry SE. Where is the Supra, MR2, or a Celica?
Ford may have sold more in April, but if I was looking at who will be the better company over next 3-5 years, I would go with Toyota. I hope Ford proves me wrong.
For any one who cares, Ford is claiming they had little to no increase in incentive activity. Certainly the dealers may have but supposedly it did not come from Ford itself.
It’s also very hard to determine which cars a company makes and sells at a loss or profit unless they break it down for us.
Uh-oh! I hope Toyota is not catching ‘GM-syndrome’. i.e., getting fat and happy and taking its products for granted that people will just buy them because they are Toyotas. Look at what’s happened to GM. FOr too many years, they thought they were invincible and people would always buy their products. Look what that got GM. I hope Toyota wakes up soon, or perhaps Hyundai will soon bite them in the ass.
Could it be that product proliferation, bad PR about reliability, and horrendous dealer service are finally catching up with Toyota?
Last year I was considering a RAV4. Went to my local dealer and found sales people who snorted at me when I asked about a test drive. Finally one deigned to respond to me–he explained that if I wanted to put down a deposit I could wait in line. Can I ask a few questions about what you have in inventory here? Bored stare: I’m busy. Around the same time a friend visited a different Toyota dealer and had the same experience. I ended up at a Kia dealer, which wasn’t beautiful but at least the employees there were responsive and courteous, and never looked back.
And did Toyota really believe the SUV market could support RAV4, Highlander, Venza, 4Runner, Sequoia, FJ, and Land Cruiser? Even the Detroit3 didn’t go that far overboard.
No doubt. Toyota in big trouble. 4 Runner is useless. Their large SUV’s and trucks are clearly inferior to Ford and GM. And now their lunch is being eaten by Hyundai/Kia and domestic entries in the car segment.
” … get to a Toyota dealer ship and sit in a Camry, look carefully at the interior parts, they don’t match, there are unequal gaps and sharp edges, not what you’d expect from the best selling car in America.”
I agree. The last time I sat in a new Camry I was horrified at the low quality interior. The mismatched colors, cheap materials and shoddy assembly were very 1990s GM. Toyota has cost reduced each new generation of Camry for a decade now, and it shows.
Toyota has lost its way and lost its edge. Momentum only carries a company so far. Just ask GM.
We rented a 2009 Camry for a trip from western Washington to Las Vegas area and back. It reminded me of the Impala we rented for the same trip two years ago, certainly competent enough but not fun to drive. We liked last year’s G6 GT a lot better.
I’m not sure anecdotal evidence can be extrapolated into proof that Toyota is failing. I don’t see it but I do see some problems with dealers able to pick-n-choose their business, stale products and some quality problems with an expanding product line.
If Toyota is smart, they will use the downturn in sales to refocus the Toyota brand, improve customer relations and allow the products to improve.
I think it is more of a cost issue. Toyotas have a price premium over most non-european competition and in today’s economy, people aren’t willing to spend $2k extra for the Toyota reputation. The feeling is that it is a new car, will be under warranty, so why should I spend $2k up front for potentially/likely better quality after the warranty runs out. Toyota claims they price their vehicles based on what the market will bear (rather than cost + $$$ margin). I would think that Toyota is going to have to start adjusting their prices to be more in line w/ the domestics.
Since everyone is throwing in their anecdotal evidence, I’ll include mine. I was looking at Venzas and Highlanders a couple weekends ago (was tossed the keys for each for a test drive, no questions asked even though I’m a 26 year old that doesn’t look a day over 21, and I said I was probably not purchasing until fall at the absolute soonest. I guess having a business card that says “engineer” convinces most people, rightly or wrongly, you have the means to afford a Toyota.) Anyway, from what the dealer had on the lot, everything was pretty much a higher end model. Without actually going into price negotiations, the high sticker prices were certainly not something that made me want to go in and start negotiating prices. Basically, I feel the whole consumer confidence thing is likely hurting Toyota more than others because there is a price premium on an equivalent (on paper) product.
I just have to add one more thing, since Quentin was talking about the high initial price of Toyota.
When I went to shop for Toyota and Honda, I said to myself, “this time I will not come empty handed”, meaning, I will ck prices b-4 I actually go to a dealer, the Costco auto program looked like something I would like to try, I got to the Honda dealer, show the Costco card and was presented with a booklet with prices for every single car they sell, 3 columns, one show sticker, one show invoice and the last one was the amount you deduct or add to the invoice and that was the price you pay, with the Accord it was $400 less than invoice, when you go into a Toyota dealer, the story is not the same, they show you a general paper for Costco price, $600 OVER invoice and the invoice price of the car is coming from a printout from the dealer computer that was higher than anything I saw on any online listing.
To me it looks a little weird, like they try to hide something from you, very different from the Honda approach.