Price cut at Stellantis——-Tundra next?

Looks like Stellantis is going to cut there overpriced vehicles by 35% in April/May. What’s everyone’s thoughts on Tundra price cuts?

 

Toyota isn’t going to do that

 

Right - It does not need to - if anything they will increase (because the market will bear it).

 

Stellantis sells mostly to people with bad credit. People with bad credit aren't buying as many cars as they were 2-3 years ago.

 

Never knew this although it makes sense now why I see so many Chargers and Challengers everywhere.

 

Nissan's brand is based on best price too. Extremely difficult to break that cycle from a brand management standpoint.

 

I don't think Toyota or Lexus have ever done persistent deep discounting on any model that I can recall?
They manage the business well.
On line 2, the Ford dealers have F150's coming out the wazoo....

 

Will suck for someone who is buying their vehicles at inflated prices now.

 

lots and lots of people paid too much in 21-24 and financed to do it.

 

Pretty sure the Tundra got a price increase.

 

But we're also seeing greater inventory and discounts on Tundras which is basically counteracting that price increase.

 

Half tons are generally interchangable. If one or two manufacturers are flooding the market and increasing discounts/incentives, it will affect others.

 

generally yes, this much , no
Again Toyota isn’t going to do that .

its generally why historically they could buy the big three cash if they wanted to, obviously they wouldn’t

 

If you looked hard enough the tundras were already going for 12,500+ off MSRP just this past summer.

I imagine those dealers are prolly discounting units even more if they still have inventory if they were already doing 12k off months ago

 

Toyota has increased incentives on Tundras from 2023 to 2025 in order to continue to expand production/sales. Supply is exceeding demand as with every 1/2 ton manufacturer. Toyota's not immune from this.

1/2 tons are interchangable. If Toyota stopped making the Tundra, people who needed a pickup would probably buy a GM, Ford, or Ram product.

It's worse in the Tacoma's market. It's interchangeable with the Ford Ranger, GM's mid-size pickups, or Nissan's Frontier.

In every market that has at least 2 significant competitors, Toyota loses pricing power. Same thing with the Sequoia in the GM Tahoe/Suburban/Yukon and Ford Expedition market.

Toyota maintains more pricing power in the 4Runner/LC/GX market because there are not that many competitors at the moment. But as Toyota ramps up production of the 6th Gen 4Runner and prices all 3 models in the same range, Toyota will probably end up competing against itself internally. That's why I'm waiting until April - July timeframe to see how the GX550 market develops with the introduction of significant 4Runner volume. LC's have already seen discounts off MSRP.

Exactly.

 

Let me be more clear here

Im not arguing incentives etc , simply saying Toyota is not going to cut by 35% the OP brought up, that’s what I’m saying isn’t going to happen

 

Yeah, Toyota is not going to cut MSRP pricing by 35%. I don't think anyone here think's that's going to happen. I think the next manufacturer that would need to cut pricing would be Ford. I think all manufacturers will probably have to end up responding with increased incentives - not necessarily MSRP reductions.

 

They’re going to cut prices because they underestimated how strong the Hemi sales were . They dropped the Hemi in favour of the hurricane engine and their buyers were not willing to change from the V8 yet .

 

No they're not. You got clickbaited by a YouTuber. No automotive manufacturer operates with a 35% profit margin on vehicles much less has the financial ability to cut prices by 35% and still make a profit.

 

^ this….and if it is possible, imagine the backlash they would face from the people who had just purchased the same car at the huge inflated price!!!!

 

I don't buy the thesis that 1/2 tons are ubiquitous and interchangeable. The brand preference is maybe less that it was but it's still high. Ford guys that would never buy a Chevy regardless of how shitty the ford is and vice versa.

I wonder how many people there are in the pick up buyer universe that would never buy a Ram due to past awful experience Dodge/Ram products and services? I wouldn't be surprised if 20% of buyerswouldn't consider one even at large discounts.

 

Those people are a problem 3-4 years down the road. Stellantis is focused on immediate survival. They're doing what Tesla has already done with their price cuts.

 

Those guys tend to be the loudest on internet forums but most people buy 1/2 ton pickups as if they were buying a kitchen appliance.

Are you saying that if you needed a pickup and Toyota stopped making the Tundra, you wouldn't buy a Ford, GM, Nissan, or Stellantis pickup?

 

Of course it's not an absolute and there is a continuum of loyalty. That brand loyalty is probably highest with pick up. Compare to corolla, civic, Altima and most buyers of those models could truly give a rip.

 

Total side note- I was in Connecticut last week and a guy I know rented a Model 3 from Hertz. When he turned it in he got an offer to sell from Hertz. It was a 20,000 mile car and he could have bought it for around $17K. Talk about trashing the secondary market...

 

Elon did this very thing with Tesla to maintain the #1 position in the EV market. In doing so he sold current owners down the river.