2008 Toyota Tundra: One Big Mother?

2008 Toyota Tundra

2008 Toyota Tundra
In a
market increasingly dominated by imports, there's one segment still controlled
by the Big Three. But maybe not much longer, at least not if the 2008 Toyota
Tundra connects with demanding American full-size pickup buyers. The
long-awaited update of the
Toyota truck blew into
the
Windy
City on Thursday, and as
one company executive suggested, "it's a big, bad mutha." The Tundra Double Cab
Limited on display at
Chicago's
McCormick Center, boasts a whopping 145.7-inch
wheelbase, a full ten inches longer than the '06 Access Cab model it replaces.
The 5.7-liter V-8 under the hood of the show car will be one of three
different engines Toyota offers when the new Tundra comes to
market next January. (There'll also be a 4.7-liter V-8 and a fuel-stingy
4.0-liter V-6, according to Toyota Motor Sales CEO Jim Press.) The big V-8 is
mated to a new six-speed automatic. The automaker was selective with statistics,
declining to provide precise mileage, power, and performance statistics -
perhaps hoping to see what General Motors will claim when it rolls out its own
new full-size trucks later this year. But one number did generate a buzz among
the attendant horde of automotive journalists: the new Tundra will deliver Class
4 towing capacity of up to 10,000 pounds. Toyota officials are clearly nervous that the
big truck will skew downward their corporate fuel economy numbers, tarnishing an
image otherwise burnished by the high-mileage Prius hybrid. So they took pains
to promise that Toyota will maintain the best overall fuel
economy of any full-line manufacturer. And company insiders hint a
fuel-efficient diesel option is under development, as well.
2006
Chicago Auto Show Coverage by TCC Team
(2/6/2006)
Boom Times for the Industry?
Last year was the third-best ever for the U.S. auto
industry, but just barely. Sales were heavily driven by lavish incentives, and
tumbled late in the year when the programs wrapped up. Volumes showed some
improvement in January, and Toyota Motor Sales' Jim Press believes the figures
will reach 17.2 million for all of 2006, which would be the industry's
second-best year. But that's just setting the stage for the boom Press is
predicting for the next decade. During the keynote speech at this year's Chicago
Motor Show, the Toyota executive said "We believe annual sales
of 20 million are in reach within the next decade." Press pointed to a variety
of factors for his optimism, including the coming of age of Millennial drivers,
booming immigration, and the general affluence of American motorists. It also
helps to have Baby Boomers living longer than ever and planning to keep driving
as long as possible. Press did admit there's a potentially dark side to
automotive growth: rising demand for decreasing reserves of oil, for one thing,
resulting in global warming and increased traffic congestion. Products like the
high-mileage Prius hybrid are an example, said Press, of how cars can "become
part of the solution, not the pollution." And he said that while there's clear
demand for more highways, technology will be needed to squeeze more cars onto
existing roadways without reaching gridlock. -TCC Team
Domestics
Pose Sales Surprise in Jan. by Joseph Szczesny (2/6/2006)
GM, Ford and Chrysler all up for the
month.
LaSorda: Reports of DCX Collapse Overdone
Tom LaSorda, the Chrysler Group chief executive officer, said despite reports
to the contrary, it was premature to suggest that Chrysler's comeback is over.
While the company has been reducing production of some vehicles such as the
Dodge Durango to reduce inventories, it is using incentives to boost sales of
other vehicles. But it also is preparing to launch ten new vehicles this year,
which promise to create new opportunities for sales. Most of the new products
won't hit the showroom until the second half of the year, he added. However, the
Chrysler Group is already studying the feasibility of adding a third shift to
its assembly plant in Belvidere, Ill. which is now producing the Dodge Caliber
and soon will build the Jeep Compass and Patriot. Production at the Belvidere plant is
expected to double this year, he added. The introduction of other new vehicles
such as the Dodge Nitro also will boost Chrysler's sales totals this year.
LaSorda, however, also stressed the company is taking a close look at costs and
has already launched a study of GM's plan to cap the pension benefits and
post-retirement healthcare benefits of workers, to see if similar changes make
sense for the Chrysler Group. -Joe Szczesny
Zetsche
Tightens Control on DC by Joseph Szczesny (2/6/2006)
New DC CEO is putting more distance between
his and the Schrempp era.
Chrysler Going Its Own Way to Fuel Gains
Ethanol fuel clearly has a place in the U.S. market.
"You need to be there with a product," said Chrysler Group marketing czar Joe
Eberhardt. But unlike its cross-town rivals, Ford and GM, the DaimlerChrysler
unit does not intend to make a big push for E85. Chrysler will focus more of its
attention on another type of fuel that could improve mileage and reduce
dependence on import oil, said Eberhardt. "We'll take a leadership role in
diesels," he told TheCarConnection.com. Chrysler already offers a diesel version
of its Jeep Liberty model and a version of its big Dodge Ram pickup. Eberhardt
declined to say what other models might be in the offing, but he said diesel
will definitely have more of a role at Chrysler. Part of the problem right now
is that tough new emissions standards require the most advanced diesel control
systems. But that technology won't work in the U.S. until
low-sulfur fuel becomes available, about a year from now. Until then, diesels
will largely be locked out of markets such as California and New
York. But, added Eberhardt, "Eventually, I
would see it (the diesel) having the same penetration as hybrids." -TCC Team
LaSorda Hits Cost of Litigation
Lawsuits are adding $500 to the cost of every car and truck sold in the
United
States, said one of DaimlerChrysler AG's top
executives. Thomas LaSorda, the chief executive officer of DaimlerChrysler's
Chrysler Group, said during a visit to the Chicago Auto Show that the legal
system levies what amounts to a tort tax, which results in higher consumer
prices, higher insurance rates, higher healthcare costs, and less innovation by
American-based companies.
"Perhaps a little blue-collar grounding and manufacturing common sense could
go a long way in making sense of the U.S. legal system. It would allow all
of us in business to use more of our limited resources where they count," said
LaSorda, who was raised in a working-class household in Windsor, Ont., across
the river from Detroit.
LaSorda said he was prompted to look at the high cost of the American legal
system during his drive to cut costs within the Chrysler Group, which has
eliminated 40,000 jobs since 2001. "It was the one area where costs kept rising
and I asked why," he said.
What he found was that the legal system, which he says allows witnesses in
product liability cases to tell only part of the truth, is badly in need of
reform. In many states, juries aren't allowed to hear whether someone involved
in an accident was wearing a seatbelt or if they were driving under the
influence of drugs or alcohol.
"We need to set some reasonable and fair limits on damages," he added. "For
every dollar awarded in tort liability, the typical injured party receives only
about 46 cents to compensate them for injuries. That means the majority of every
dollar goes elsewhere," added LaSorda, who noted that lawsuits have become one
of fastest growing industries in the U.S. and now generate more than $46
billion in fees annually.
The U.S. now spends about
2.23 percent of its GDP on legal fees and other costs associated with litigation
while countries such as France, Japan, and Canada spend
less than one percent of the gross domestic product on litigation. "In my
business, we have a word for this kind of non-value added cost: waste," LaSorda
said.
LaSorda also said, "There is no question that the employer-based healthcare
system is broken. While other countries have found a way to help their
businesses with the burden, we've not done this in the United States.
Healthcare is an important structural issue that needs to be addressed but this
will require long-term solutions across all industries," added LaSorda. -Joe
Szczesny
OnStar Readies New Service
General Motors Corp. used the tenth anniversary of OnStar's introduction back
in 1996 to bring on a new service that offers drivers directions through the
car's audio system. The new system will eliminate the need for video screens and
helps the driver keep his eyes firmly on the road, according to Chet Huber,
OnStar President. Users call an OnStar advisor and ask for directions. In turn,
the advisor, using GPS, sends the most direct, step-by-step directions to the
vehicle via the OnStar system. Audio directions are then played through the
vehicle's stereo system when they are needed even if the driver is playing the
radio or a CD. A small display on the instrument cluster also can be used to
relay text directions. The system also will automatically issue corrective
instructions if the vehicle strays off course. Huber said GM believes the new
system will appeal to consumers who already depend on OnStar for peace of mind.
GM is prepared to equip as many as one million new vehicles with the
turn-by-turn technology at the start of the 2007 model year later this year,
Huber said. The system uses an enhanced wireless data network and improved
positioning technology. -Joseph Szczesny
Humvee Out, International MXT In the Army?
A quiet revolution is underway in the sourcing of military vehicles and the
International Truck & Engine Corp. of Chicago is hoping that its new $69,900 MXT 4X4
can fit into the mix. "The new MXT is a symbol of our company's commitment to
breaking through into new markets," said Dee Kapur, president of International
Truck Group. Kapur said that International has been asked to provide prototypes
of the truck to the U.S. Department of Homeland Security and the U.S. Department
of Defense for use by agencies such as the U.S. Border Patrol, the U.S. Army,
and other services. Kapur also confirmed that International also has won one
contract from the DOD to build a prototype for a vehicle that would eventually
become the replacement for the U.S. Army's fleet of Humvees. Lockheed Martin
also won a contract to build a prototype. But AM General of South Bend, Ind.,
appears to have been shut out of the competition, which is being refereed by the
U.S. Army's Tank & Automotive Command in Warren, Mich.
-Joseph Szczesny
York:
GM Should Drop Saab, HUMMER by Joseph Szczesny (1/10/2006)
Company has 1000 days of cash left,
Kerkorian's wingman says.
MotorWeek Gives Civic the Nod
The Honda Civic walked away with "Best of Year" award from MotorWeek,
the weekly PBS show that bills itself as television's "Original Automotive
Magazine." John Davis of MotorWeek said that "the suite of Civics" that
Honda brought out last fall were "the right vehicle for the right time." The
Honda Civic also walked off with a Drivers' Choice award from MotorWeek
as the Best Small Car, while the Hyundai Sonata was named the best family sedan.
The Honda Odyssey was named the best minivan while the Pontiac Solstice was
named the best convertible and the Infiniti M was named the best luxury sedan.
The Ford Mustang was named the best peformance car and the Toyota RAV4 was named
the best small sport-utility vehicle, while the Ford Explorer/Mercury
Mountaineer walked off with a Driver's Choice Award as the best family
sport-utility vehicle. The Ford F-150 was named the best pickup truck; the
Toyota Highlander Hybrid was named the best eco-friendly vehicle; and the
Chevrolet Corvette Z06, Dodge Viper SRT10 Coupe, and Ferrari F430 were named the
best dream machines. -Joe Szczesny
AutoNation, Lithia Post 2005 Revenue, Profit Gains
AutoNation, Inc. and Lithia Motors weathered severe storms and sales
downturns at General Motors and Ford in the fourth quarter, each publicly-owned
dealership group recording revenues increases for the full year despite the
challenging climate. Lithia's 94 western and southwestern dealers boosted total
revenues for 2005 by ten percent to a record $2.94 billion. The Medford,
Ore.-based Lithia, whose top vehicle supplier is Chrysler Group, reported that
net income for the year advanced to $49.8 million despite a dip in the fourth
quarter. Chairman and CEO Sid DeBoer attributed the late-year decline to a
"pullback" of new-vehicle sales caused by the "employee price" strategy used by
the American brands in the summer months.
Top megadealer AutoNation was hit hard in the final period by Hurricane
Wilma, which damaged nearly all the Fort Lauderdale-based group's Florida
dealerships. Chairman and CEO Mike Jackson said that the fourth-quarter
sales declined at AutoNation to $4.485 billion and net income to $75.3 million
from $4.751 billion and $161.8 million a year earlier. "All our Florida stores are back
in operation now," said president and COO Mike Maroone in a media/analyst
conference call.
For the full year, AutoNation's 280 dealerships tallied $19,253 billion in
revenues, up one percent from the prior year. Net income reached $496.5
million, up from $433.6 million in 2004. Jackson called on automakers to adopt
"transaction prices" as their listed suggested retail prices, which would be
markedly lower than the prices shown now on the Monroney labels. "If we can
deal with market prices, we can accept the profit-margin trims the Detroit automakers have imposed," Jackson said.
-Mac
Gordon
GM Following Yellow Line; Who's Following?

2007 Chevrolet Avalanche

2007 Chevrolet Avalanche
The
billboards plastered all over
Chicago's
McCormick Place generated a bit of confusion when the media
hordes descended on the
Windy City convention center. "Live Green, Go
Yellow," they declare. And it turns out they're the slogan for General Motors
big push for ethanol, a campaign teased with a pair of commercials aired during
last weekend's Super Bowl. The automaker hopes to see a rapid increase in
production and distribution of E85 - a blend of 85 percent ethanol and 15
percent gasoline, said marketing executive Brent Dewar. Since ethanol can be
produced from a variety of grains, such as corn - hence the reference to yellow
- it is a renewable alternative to imported oil, and said Dewar, part of the
process of "ultimately removing the automobile from the environmental debate."
So far, GM reported, it has produced more than 1.6 million flex-fuel cars,
trucks and crossovers, vehicles that can run on any blend of gasoline or
ethanol. The problem is that few consumers actually use the fuel. At the moment,
there are no more than 500 E85 pumps in the United States.
But "the intent is to build the infrastructure," asserted Beth Lowery, who heads
GM's environmental efforts. The more E85-capable vehicles, she added, the more
likely energy companies will provide the fuel. The effort is also getting a push
from the President, who spotlighted ethanol during his State of the Union
speech. With automakers like GM and Ford partnering with Shell, VersaSun and
other ethanol providers, industry prognosticators are hoping there'll be 2000
E85 pumps dotting the U.S. map by the end of 2006.
GM
Slashes Exec Pay, Dividend by TCC Team (2/7/2006)
Still more "shared pain" could be in the
offing, CEO Wagoner suggests.
Ford Gets E85 Out with Kermit

Kermit and Anne Stevens

Kermit and Anne Stevens
Ford
had some E85 announcements of its own to make in
Chicago. It rolled out a prototype Escape
Hybrid that can run on gasoline or ethanol, with the help of Muppet Kermit the
Frog. Like GM, Ford is partnering with various energy suppliers to expand
availability. "Consumers aren't willing to drive 50 miles" to find ethanol, said
Anne Stevens, Ford's second-in-command in the
U.S. But more
pumps mean more motorists will actually fill their flex-fuel vehicles up on E85,
rather than gasoline, she contended. But not everyone is quite so confident. For
one thing, ethanol is currently a good bit more expensive than gasoline and
doesn't deliver quite as much mileage-not to mention the fact it competes with
food production from the same basic grains. "There are still a lot of questions
about what the real benefits (of ethanol) will be," cautioned Jim Press, CEO of
Toyota's
U.S. operations.
Bush
Takes Ethanol Message on Road by Joseph Szczesny
(2/6/2006)
Follow-ups to State of the Union press for break from
oil "addiction."
Press: Fuel-Economy Numbers "Misleading"
Press's skepticism could also reflect the fact that Toyota has been betting
its environmental reputation on its growing lineup of hybrid-electric vehicles -
products that have generated some controversy of their own. The EPA is proposing
changes in mileage tests, and some observers estimate products like the Toyota
Prius could see their own fuel economy ratings dip by 20 to 30 percent. Press
said he supported the new rules because, "the advertising (of current mileage
estimates) is misleading." Toyota is investing $7 billion a year on the
development of higher-mileage and alternative fuel vehicles, Press added.
Ultimately, he suggested, there is likely to be a "matrix" of different
powertrains - gasoline, ethanol, hybrid, diesel and even hydrogen - filling the
varied needs of American motorists.
2007
Toyota Camry by Bengt Halvorson (1/30/2006)
Ready to spoil a new round of frugal family buyers - and
keep its best-selling title.
New Tundra Has MichiganRoots
The hubbub over Toyota's new Tundra pickup
truck has been building for months, with the Japanese automaker nearly done with
a new plant in San Antonio,
Texas, where it will produce the
truck. It turns out, though, that the first "production" truck ready for public
viewing at the Chicago Auto Show was built not in Texas but by a team of technicians in a secretive pilot
plant near Ann
Arbor, Mich., in a part of the Toyota Technical Center. The new San Antonio-built truck
will reach the public in about 11 months and Toyota is targeting sales of 200,000 units in
2007, according to Jim Press, Toyota Motor Sales, chief operating officer. The
San Antonio plant simply wasn't ready to produce
the pilot version in time for its official introduction in Chicago, Press
said.-Joe Szczesny
Spy
Shots: '07 Toyota Tundra by Hans Lehmann/Hidden Image (1/30/2006)
The
first pictures, ahead of Chicago's launch.
GMT900 Ahead of Schedule
With the bad news piling up, General Motors is basically betting the company
on the success of the GMT 900. Gary White, the vehicle line executive
responsible for the trucks and sport-utility vehicles in the 900 family, said
the program is ahead of plan. "We're ahead of schedule," he said in Chicago when
TheCarConnection caught up with him after watching rival Ford roll out the
makeover of the 2007 Lincoln Navigator at the Chicago Auto Show. White
said GM's assembly plant in Arlington, Texas, is already building the Chevrolet Tahoe and
Yukon and two
weeks ago added the 2007 Cadillac Escalade to the mix. GM's assembly plant in
Janesville, Wisc., also began building the Tahoe
and Yukon last
month and GM is soon planning to move ahead with the long-wheelbase versions of
the new SUVs and then add the Avalanche to the mix in March, he said. The
success of the various GMT900 models is considered critical to GM's hopes of
regaining profitability, analysts have said. An accelerated production schedule
also enhances GM's cash flow and relieves more of the financial pressures faced
by the company.-Joe Szczesny
Ford Keeps Part of "Way Forward" Secret
Ford Motor Co. isn't prepared to offer any more details about its "Way
Forward" restructuring plan, said Anne Stevens, Ford executive vice president
and one of the chief architects behind the effort to revive Ford's struggling
automotive business. Stevens also said the company was still evaluating
specifics such as what additional plants it will closes as part of the
restructuring. Ford assembly plants in Wixom, Mich., Atlanta and St. Louis are
preparing to close as part of the effort to reduce the company's assembly
capacity. Ford also is discussing closing two additional assembly plants to
further reduce capacity. Stevens, however, noted that Ford also wants to retain
some flexibility as it moves ahead with the plan. In 2002, Ford outlined most of
the details of the plan right from the start but wound up painting itself into a
corner, she said. As circumstances change, Ford found it was difficult to alter
the plan because of its earlier public statements. Ford would like to avoid
repeating the mistakes of 2002, she said. Other Ford officials also said the
company is still wrestling with what to do with the Lincoln Town Car and the
platform on which it rides. So far, Ford hasn't found a home for the Town
Car, which will be evicted next year from its long-time home in Wixom. Ford is
still looking at various scenarios for moving and/or enhancing the Town Car,
Ford officials said in advance of the Chicago Auto Show. The final decision
isn't far off but it has not been made yet. Stevens also declined to say whether
in the wake of the planned cuts spelled out in the restructuring plan, the
company's automotive business will return to profitability in 2006. "We're not
saying anything in connection with 2006," she said.-Joe Szczesny
York Gets GM Board Seat
Jerry York, Kirk Kerkorian's car guy, was named to General Motors Corp.'s
board but the giant automaker held up in announcing any major changes to its
dividend policy in the wake of the monthly meeting of the GM's directors.
GM saidYork will officially become a director February
7 and he will serve on the board's public policy and investment funds
committees. The announcement also heads off what could have become a potentially
divisive proxy fight with Kerkorian, who now controls about 9.9 percent of GM's
stock and who said last year he wanted a representative on the board.
"Jerry brings years of business experience and knowledge of the automotive
industry to the GM Board," noted Rick Wagoner, GM chairman and chief executive
officer. "We are pleased to welcome him to our Board," Wagoner said.
York has been
a consultant to Kerkorian's Tracinda Corp. for more than a decade and in
1998, he played a pivotal role in the Chrysler Corp.'s decision to accept the
offer from Daimler-Benz that created DaimlerChrysler.
Last month, York served up a blistering critique of GM's management in
which he warned that GM had only about 1000 days of cash reserves left on hand
and needed to change and change dramatically, even before GM posted a
$8.6-billion loss for 2005. He also called for a cut in the company's dividend,
reductions in executive salaries, and the elimination of brands such HUMMER and
Saab.
Wagoner also disclosed that Stanley O'Neal, the chairman of the Merrill
Lynch, had quit GM's board. In submitting his resignation, O'Neal cited
increased time demands resulting from the expanded schedule of GM board meetings
which were difficult to accommodate given his responsibilities at Merrill Lynch,
as well as limits on his ability to act as a GM director because of potential
conflicts with matters in which Merrill Lynch is involved, GM said.
GM is currently trying to sell part of GMAC, its financial services
subsidiary, and Merrill Lynch, as one of the world's largest financial services
companies, is likely to be involved in any potential deal. -Joe Szczesny
York:
GM Should Drop Saab, HUMMER by Joseph Szczesny (1/10/2006)
Company
has 1000 days of cash left, Kerkorian's wingman says.
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