The 2007 Toyota
Tundra was among the most eagerly awaited new vehicles
of the past decade: a rising automaker's ultimate
challenge to established competitors.
The Tundra
struck at U.S. automakers' last stronghold: full-size
pickups. It was widely expected to stomp them into dust.
Instead of a
triumph that pounded the final nail into Dodge, Ford and
GM's coffins, Toyota's first full-size pickup has
struggled.
Hampered by
disappointing fuel economy and recalls, the Tundra was
among the first cracks in the veneer of invincibility
that Toyota built over decades.
The Tundra is
far from the cause of Toyota's woes, but the big pickup
may be symptomatic of what went wrong when the
automaker's headlong rush to boost sales met a
management culture in which all major decisions were
made in Japan.
The wheels
didn't come off Toyota's revered engineering and
quality-control systems the same day the automaker
decided to invest billions of dollars in its first
full-size pickup, but the Tundra is a nexus of the
automaker's current problems.
Toyota
executives called the Tundra the most important vehicle
the automaker had ever introduced in the U.S., but the
program stumbled from the start. Its disappointing fuel
economy was a shock that undermined Toyota's image of
technical superiority. It struggled to reach it sales
goals and fell victim to early recalls. The Tundra is
among the vehicles affected by both of Toyota's current
unintended-acceleration recalls.
Toyota spent
years developing its first true full-size pickup,
tooling two assembly plants to build it. The current
Tundra, which competes with the Chevrolet Silverado,
Dodge Ram, Ford F-150 and Nissan Titan full-size
pickups, went on sale in 2007. It replaced a smaller
pickup of the same name Toyota had introduced in 1999.
"The
Tundra just didn't meet the expectations of people who
owned F-150s and Silverados," said Stephanie
Brinley of consultancy AutoPacific. "It wasn't the
best in its class, and the Toyota halo didn't transfer
from cars like the Camry."
While U.S.
automakers had built a succession of poor cars in the
1980s and '90s, Chevy, Dodge and Ford pickup owners were
generally satisfied.
In addition to
underestimating the competition, Toyota's timing was
lousy. After years on the upswing, the market for big
pickups faltered just as the Tundra went on sale in
2007. Gasoline prices spiked from a national average of
$2.11 a gallon to more than $3 as the Tundra hit the
market.
Toyota invested
more than $4.5 billion in the two Tundra assembly
plants. It then spent an unspecified amount to retool
its Princeton, Ind., plant to build other vehicles when
Tundra sales sank to just 79,385 last year.
Carmakers don't
disclose their costs to develop a vehicle, but it's safe
to say engineering added at least $1.5 billion to the
Tundra's tab.
Few of Toyota's
customers were clamoring for a big pickup powered by a
381-horsepower, 5.7-liter V8 engine. Toyota built its
reputation on small, reliable cars and high fuel
economy.
"The
decision to build the Tundra was driven more by Toyota's
desire to be a full-line manufacturer than to please its
existing customers," Brinley said.
The resources
that produced benchmark vehicles like the Prius and
Camry were spread thin as the automaker pushed to become
the world's largest automaker.
Toyota
President Akio Toyoda admitted to Congress that the
desire for growth led to Toyota's current woes, but the
automaker's Japan-dominated culture created some of the
Tundra's shortcomings, said Jim Hall, managing director
of 2953 Analytics. "The cultural gap to develop a
big pickup is huge for Japanese companies," he
said.
Toyota spent
more than a decade edging into the market with two
smaller pickups before the 2007 Tundra, only to have its
self-proclaimed most important vehicle ever for the U.S.
run headlong into stronger competitors, a stumbling
economy, a market shift away from pickups and now the
company's own quality problems.
With around $6
billion spent on the Tundra and more than 8 million
vehicles now recalled for a variety of defects, it's
worth asking whether Toyota's big pickup was a
considered strategic move or a costly detour.