News from Japan

[DaveS]

There was a guy on the radio who was saying that one supplier that was badly impacted by the tsunami provides most of the world's supply of certain pigments for metallic red, white and black auto paint which is used by almost all auto manufacturers. He was indicating there may be limited supplies of those colours for all manufacturers not just Toyota etc.

 

[Arc.]

Thanks for the advice. 38k isnt to bad. I would like to be at 35k with KDSS and without Nav. Couple that with a healthy down payment & financing the rest through the dealer/Toyota I believe it is doable.

I just got my 2011 TE KDSS w/o Nav this past sunday for $36,700. It was $190 above invoice (mine came with stupid door guards, hood protector, cargo cover, cargo divider). I did find one in Idaho I could of gotten for $35,900, but didn't want to pay for shipping. I guess if its a bare-bones no options added, smokin deal you could get close to $35k.

I used an autobroker to buy mine, second 4runner I bought from him.

 

[Jin]

the internet sales guy at toyota informed me that in a few weeks there won't be any discounts for 4runners at his dealership. i was already buying the car...don't know if he was making it up or not.

 

[myk1013]

How is this effecting customers orders of cars as well as prices?

Probably depends on a case by case basis.

My younger brother was able to make an order for an Infiniti a week after the earthquake/tsunami. Salesman said (and verified by the manager) it will take the usual 3 months for it. My brother just called him yesterday to check on his order and they said everything looks ok and as scheduled.

 

[SeattleMike]

A couple of updates.

First, regarding production levels:

"As expected, May was an especially challenging month due mainly to uncertainties about our production forecast. But thanks to the tremendous efforts of our manufacturing team members and suppliers, we are ramping up much faster than expected," said Bob Carter, Toyota Division group vice president and general manager, Toyota Motor Sales, U.S.A. "Beginning this month, Japan production will be at 90 percent of normal levels, and eight of twelve North American-built vehicles will be at 100 percent. With more vehicles arriving at our dealerships and enhanced dealer support programs gaining traction with customers, we're optimistic that our sales outlook will continue to improve."

Second, sales are down 27.9% compared to May 2010. As you can see from the chart, Lexus led the decline but not all of the decline can be blamed on the earthquake; gas prices are clearly taking a toll on the sales of vehicles with larger engines or higher curb weight; Tundra sales are down 41% while Tacoma sales are higher by 14.1%. 4Runner sales were down 17.4% compared to May 2010 but are up 3.7% year-to-date, with 19,218 sold in 2011.

I don't know what kind of inventory Lexus dealers have on the lot, but with the entire division off by 40%, there might be some sweet deals around. Sadly, while the 4Runner will never hit the production numbers from the glory days of $1.50 gas and 135 yen-to-the-dollar exchange rates, they are still selling everything they make... which doesn't leave buyers in a stronger negotiating position.

 

[badburro]

Having just bought a new 4Runner, I'd have to agree with SeattleMike that there is no room for negotiation on new 4Runners here in the Pacific NW. Low inventory and adequate demand = no negotiation. :sobbing:

Despite that I'm very pleased with my new ride. :banana:

 

[03_4x4Runner]

A couple of updates.

First, regarding production levels:


Second, sales are down 27.9% compared to May 2010. As you can see from the chart, Lexus led the decline but not all of the decline can be blamed on the earthquake; gas prices are clearly taking a toll on the sales of vehicles with larger engines or higher curb weight; Tundra sales are down 41% while Tacoma sales are higher by 14.1%. 4Runner sales were down 17.4% compared to May 2010 but are up 3.7% year-to-date, with 19,218 sold in 2011.

I don't know what kind of inventory Lexus dealers have on the lot, but with the entire division off by 40%, there might be some sweet deals around. Sadly, while the 4Runner will never hit the production numbers from the glory days of $1.50 gas and 135 yen-to-the-dollar exchange rates, they are still selling everything they make... which doesn't leave buyers in a stronger negotiating position.

I guess gas guzzlers are still selling. Jeep sold 9484 Grand Cherokees in May alone. Even the underpowered Wrangler sold 10,008 in May. This is from Motor Trend magazine.

Jeep – 35,573 units, up 55 percent

Jeep’s sales gains were buoyed by the new Grand Cherokee, which recorded a year-over-year increase of 192 percent, amounting to 9484 sales in May. The volume leader continued to be the Wrangler, up four percent to 10,008 sales. Every other Jeep nameplate also saw sales gains compared to May 2010: Compass was up 92 percent to 4002, Patriot climbed 80 percent to 5470 sales, and the Liberty saw a 47-percent bump to 6048 monthly sales. Every single Jeep model was refreshed or redesigned for the 2011 model, which may explain the impressive sales gains



Read more: Chrysler Group Sales Increase for 14th Straight Month, Jeep Sales Rise 55 Percent - WOT on Motor Trend

 

[homeyclaus]

the internet sales guy at toyota informed me that in a few weeks there won't be any discounts for 4runners at his dealership. i was already buying the car...don't know if he was making it up or not.

Easy. The way to find out is to say "thank you, I'll be buying at the other dealer I am talking to that does."

I did that to the people wanting more for a 2010 that had been on their lot six months than the 2011 I was looking at.

 

[SeattleMike]

I guess gas guzzlers are still selling. Jeep sold 9484 Grand Cherokees in May alone. Even the underpowered Wrangler sold 10,008 in May. This is from Motor Trend magazine.

Jeep – 35,573 units, up 55 percent

Jeep’s sales gains were buoyed by the new Grand Cherokee, which recorded a year-over-year increase of 192 percent, amounting to 9484 sales in May. The volume leader continued to be the Wrangler, up four percent to 10,008 sales. Every other Jeep nameplate also saw sales gains compared to May 2010: Compass was up 92 percent to 4002, Patriot climbed 80 percent to 5470 sales, and the Liberty saw a 47-percent bump to 6048 monthly sales. Every single Jeep model was refreshed or redesigned for the 2011 model, which may explain the impressive sales gains



Read more: Chrysler Group Sales Increase for 14th Straight Month, Jeep Sales Rise 55 Percent - WOT on Motor Trend

What MT failed to mention was that along with that "model refresh" came pretty significant price drops for all 16 models made by Chrysler, only found in the quarterly report the file with the SEC. Their total sales across the company was 115,363 vehicles. Contrast that with Toyota, who increased prices, which sold 108,387 vehicles while recovering from the worst natural disaster in its modern history.

This isn't a knock on Chrysler, as I really do hope they pull through, but when your sales are already in the toilet it doesn't take much to claim 55% gains. The S&P500 is up 94.3% from its March 2009 low... but still down 16% from its 2007 high; while it's not as bad as it was, it still isn't as good as it was either.

 

[03_4x4Runner]

Here is the best selling car list for March 2011. So the earthquake should not be a factor.

1. Ford F-Series: 53,272
2. Honda Accord: 33,616
3. Chevy Silverado: 32,555
4. Nissan Altima: 32,289
5. Toyota Camry: 31,464
6. Honda Civic: 31,213
7. Toyota Corolla: 30,234
8. Ford Fusion: 27,655
9. Ford Escape: 23,975
10. Hyundai Sonata: 22.894

Full Story: Kicking Tires

The Camry and Corrolla is Toyotas volume leader by a long shot. I can not believe how many F150s are sold. This info came from here. What Were the Top-10 Best Selling Cars in March 2011? (The Torque Report)

 

[SeattleMike]

I can not believe how many F150s are sold.

Fleet sales... how many work trucks are from one of the Big 3? The majority of them, from sea to shining sea.

 

[9Hooker]

Well I don't think we'll see too much discounting going on for the rest of the year. Maybe my '11 LTD will have some collector value, huh?


I gotta tell you guys, I'm stuck behind enemy lines here in Detroit (not for long though..) and they are dancing in the streets over GM rising from the ashes to triumphantly reclaim the No. 1 spot from Toyota.

I told a guy yesterday that this seems to me like being proud of kicking the ass of a kid with cancer. I mean really....wtf?

U.S. taxpayers are about $10 billion in the red on their General Motors Co. investment after Wednesday's initial public offering. Whether the Treasury can ultimately break even will depend on how GM shares perform over the next few years.

Treasury Takes Initial Public Loss on GM Shares - WSJ.com

 

[Fialdj]

fleet sales. no kidding for the Ford Escape. all of the IT field people and even some sales people are being given the Escape. Now if Toyota would ever bring 4runner production into the States?

 

[SeattleMike]

fleet sales. no kidding for the Ford Escape. all of the IT field people and even some sales people are being given the Escape. Now if Toyota would ever bring 4runner production into the States?

It would be nice and I suspect that is what buoyed the Tacoma sales over the last quarter. But most fleets were on a 3-year replenishment cycle which was extended to 5 and/or 7 after the crash in 2008, which means the are being replaced through attrition if nothing else. Consider that most governments have a domestic requirement (unions helping unions), Ford and GM stand to gain the most from fleet leases, while GM and Chrysler (especially Chrysler) have been cutting deals with rental companies and stuffing those channels with huge amounts of low margin inventory.

 

[Socco]

fleet sales. no kidding for the Ford Escape. all of the IT field people and even some sales people are being given the Escape. Now if Toyota would ever bring 4runner production into the States?

Please god NO! Leave making 4Runners to the Japanese. There must be a reason that the 4Runner never has any major recalls and I believe it starts at the factory.

 

[Mr.T]

I read in the NY Times or WSJ that a lot of shipping companies were avoiding Japan completely due to the radiation issue. I can't seem to find it again. As if the anguish from the earthquake and after effects weren't bad enough...

 

[Reata]

Especially considering that they wouldn't even exist without my tax dollars saving their bacon. Toyota will overcome this temporary problem, and their new factories will be more productive and of a higher quality than ever before. On the other hand, GM is stuck with the same management and union leadership that took them to the brink of destruction the first time but there will be no more bailouts when they run it into the ground again.

Don't get me wrong, I love this country and everything it's Constitution provides... but a large swath of my fellow Americans have forgotten that freedom comes with responsibility and not a guarantee nor a right to the success of others. The Big Three are just the best example of that.

I am with you 100%, except let's remember that FORD took no handouts from the current President and his idiotic gallery.