Toyota Motor Sales U.S.A. Inc. is taking the launch of its new Tundra in stride, refusing to panic over the prospect of using higher incentives to move the fullsize pickups off dealer lots.
Toyota last week added a $1,000 trade-in allowance on top of a discount of up to $2,000, a move considered unusual for a vehicle less than two months into its launch, particularly for Toyota.
But executives say that’s just part and parcel of today’s highly competitive truck market.
“Certainly the whole segment is very incentive-driven,” Don Esmond, senior vice president-automotive operations, says during a conference call with reporters to discuss March sales. “If you look at the market, a lot of competition has been ramped up. There’s $5,000 cash, trade-in cash, dealer certificates – a lot is going on in the market.”
Esmond says Toyota’s incentive programs vary regionally, but most are focused on “transaction issues,” helping dealers close the sale by contributing to trade-in allowances or financing. “We will continue to monitor the market to stay competitive,” he says.
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