Is it good news or bad news? After January’s 16% drop, February’s 9% slide could be evidence that the worst is behind Toyota’s fall from sales grace. It certainly seems that the models most connected to the recalls and bad news are being hit the hardest, with the flagship Camry down a nasty 20%. Just to show how the tide has changed, Camry outsold the Fusion by exactly 93 units. The Avalon was off 65%, suggesting that the gray panthers are avoiding its UA issues; let’s just hope they’re not buying Town Cars instead. The newly revised Lexus ES 350, also a UA posterchild, was off a fairly mild 9%.
Overall, Toyota brand vehicles were hit harder (-11%) than Lexus, which was up 5% in the month. The Lexus GX (+185%) helped keep the division in the positive side of the ledger. Prius managed a tidy 10% gain despite the bad publicity. Corolla was down a modest 6%. The new 4Runner is off to a good start with almost 3k units and up 55%. Full details after the jump:
I’m stunned. I really thought that Toyota would be hit much harder than that. People were predicting double digit drops. And when you factor in the fact that they lost a week of production and sales, this isn’t too bad for Toyota.
This can be the only reason why Toyota stock is up 1.34% (at time of writing). I can’t think of any other logical reason.
Don’t try to assume direct correlations between a company’s performance in the stock market and their operating performance. You’ll go nuts
Often companies are buoyed or sunk by “prevailing winds”. Good employment numbers are enough to account for what you’re seeing.
Did you really think Toyota people were going to run out and buy Fords and Chevys????
I know you can look at the numbers and say it’s only a -10.6% change from last February’s low selling rate. It aint to bad, right?
Meanwhile Nissan sales are up nearly 32% for the month, Subaru up 38% and Ford 46%.
If it weren’t for the negative media blitz, Toyota’s sales would of gained at least 20% this month over February 09. So, really sales are off by a third of where they should be – if the SUA scare hadn’t occurred.
Next month will be worse if the press keeps going with their assault.
Truck and SUV performance don’t look so good. The Detroit 3 can take heart from these numbers, as they may yet be able to hold this critical edge going forward. Trucks are their life… still.
Toyota will have mega incentives.
Not so. Toyota released their march incentives today. 0% financing is only on a handful of models. Cash back is generally insignificant (other than Tundra and Avalon). My ordered 4Runner hasn’t arrived yet, but I’m hoping it doesn’t until April because there is absolutely zero incentive on it at the moment. I’ll be happy w/ 0%.
There is no way to put a positive spin on this news. If your sales are down in an up market and if they are 9% worse than February of ’09, which itself was one of the worst months for the industry overall in years, you’ve got some work to do.
Toyota lost a week of production & sales, had the media rain a storm down on them (while ignoring other companies) and analysts predicted that they’d have double digit drops.
Yes, Toyota have work to do, but I expected much worse figures than this.
What’s going on with Avalon, the Electra 225 of Toyota? Sales fell 2/3 for February, over three times the rate of decline for Camry. Does it cost too much and Toyota won’t yield on price? Lack of product on the lots? Was it taken off the market most of the month? Is it that Avalon’s demographic is about all that still watches the network news?
Toyota is still generally stingy with incentives. It must figure the market will rebound.
A few things, I suspect
* One, it’s about to be replaced by a refreshed model
* Two, it never really sold all that well, what with getting squeezed by the Camry XLE and ES350. The Taurus doesn’t help matters
* Three, and this is just my casual observation so don’t read too much into it, the demographic to which the Avalon appeals is also the most likely to trust the mass media, and also the most likely to lap up the media’s message of fear.
I don’t know if it’s completely related, but you’re right about the media’s hold on progressively older demographics. Older folks are much more sensitive to issues like crime and personal safety, and are generally more trusting of the media. Younger folk are more cynical or apathetic about the media, and a little more devil-may-care about personal safety.
This is a pet peeve of mine, as older folk also tend to vote in much greater numbers
psar, you forgot to mention that the full-size sedan market is dying. :)
Literally or figuratively?
Damn you and your rhetorical questions!
Toyota was DOWN 37% in February 2009. So, they’ve even failed to meet that low target.
Compared to February 2008, Toyota’s 2/2010 sales were off 45%!
Toyota- “we’re #3!”
As long as Consumer Reports still loves ’em, they’ll be fine (long term).
Hey Paul, you can’t just plop a staggering picture like that down and say *nothing* about it! C’mon, *give*!
I would celebrate except my folks own that UA poster child, the ES350. (I told them to get that Jaguar XF…)