Toyota's new plant will employ 2,000 directly and thousands more indirectly at suppliers co-located in Blue Ridge

Toyota critics argue that Toyota’s 2,000 new hires aren’t actually “new” at all – that they are just cheaper replacements for NUMMI workers who were let go earlier this year.

Critics Attack Toyota’s Mississippi Venture

People who have been following Toyota will recognize that the new Blue Ridge plant will replace Corolla production that was lost when NUMMI was closed earlier this year. Many critics feel that Toyota shouldn’t get any credit for hiring new workers because they are merely replacing NUMMI jobs that were lost. NUMMI’s closure resulted in about 4,000 assembly jobs lost, and Mississippi brings back about half that number.

NUMMI also assembled the Tacoma, which Toyota recently began producing in San Antonio. Toyota hired 1,000 additional assembly workers at the Texas plant for this purpose, so the total count is: NUMMI – 4,000 assembly jobs lost. San Antonio and Blue Ridge – 3,000 assembly jobs gained.

But that’s not the whole story.

NUMMI was a joint venture between GM and Toyota, and NUMMI’s closure was a direct result of GM’s decision to abandon the plant during their bankruptcy. While Toyota definitely deserves some of the blame for NUMMI jobs lost, it’s a little too simplistic to blame Toyota exclusively for NUMMI.

Those who criticize Toyota for NUMMI job losses seem to be glossing over huge job losses brought on by Ford, GM, and Chrysler since the recession began in 2007. According to AOL’s Daily Finance, GM has been the “king” of layoffs since the recession began with more than 100k workers fired. Ford laid off nearly 16k workers in this same period, and Chrysler let go more than 13k. It would seem then that Toyota’s decision to close NUMMI and lay off 4,000 assembly workers (brought on by GM’s bankruptcy) should be compared to immensely larger layoffs at GM, Ford, and Chrysler.

At worst, Toyota has held serve by closing the NUMMI plant and hiring new workers in San Antonio and Mississippi.

At best, Toyota should receive credit for continuing to invest in US auto production while Ford, GM, and Chrysler lay off thousands and expand production in Mexico.

What do you think?

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Last Friday, PickupTrucks.com published the new Tundra tow ratings. As you can see in the table below, they’ve dropped as much as 11% on some configurations:

Here’s why the Tundra’s ratings have fallen:

1. The new standard requires manufacturers to assume their vehicles are carrying more weight. Under the old system, manufacturers could get away with rating a brand new truck assuming that it was only carrying one person, no extra equipment, no gear, etc. The new standard requires manufacturers to account for the weight of a driver, a passenger, common options, and popular after-market equipment. This will add about 500 lbs (on average) to a vehicle’s curb weight, reducing the tow rating accordingly.

2. New ratings assume a standard trailer cross-section and frontal area. If you’ve ever tried to tow a really big boat, you know that weight isn’t the only factor to consider while towing. A trailer with a large frontal surface are can be impossible to tow at or near highway speeds because of aerodynamic drag. The new standard specifies a common cross section and frontal area for all trailers, accounting for drag.

3. The ratings must be backed by severe duty tests. It’s not enough to use a standard size trailer and to account for a “normal” payload – the ratings also require all manufacturers to conduct extensive testing and prove that their truck can withstand severe conditions.

As of today, the 2011 Tundra will be the only half-ton truck on the market that adheres to the new SAE towing standards. All the other trucks available in 2011 (again, as of this posting), may or may not meet the standards (pending announcements).

Ram Double-Talk on SAE Standard?

A Ram spokesperson was quoted in the PickupTrucks.com story as saying that the 2011 Ram 1500 “meets the key elements” of the new SAE standard. However, I contacted Ram PR person Nick Cappa about this very question a few weeks ago, and at that time he told me that the Ram 1500 did not meet the SAE standard.

It is certainly possible that the Ram 1500 “meets the key elements” of the standard using the existing tow rating, but it seems highly unlikely. Ram’s website has a disclaimer on their 10,450 lbs max tow rating that states the rating is calculated assuming a 150lbs driver and that any additional equipment must be deducted from the rating. This disclaimer doesn’t follow the new SAE standard requirements, which dictate that tow ratings should be calculated assuming both a driver and a passenger, common equipment, etc. Because of this fact, it would be expected that the Ram 1500’s tow rating would decline once the new standards are adopted.

Ram’s statement the 1500 “meets the key standards” seems to contradict the obvious.

This isn’t the first time Ram has made some suspicious tow rating statements. The Ram 1500’s max tow rating increased from 9,100 lbs in 2009 to 10,450 lbs in 2010, yet according to this PickupTrucks.com story, the 2009 and 2010 Ram 1500 are “identical” and a Ram PR spokesman at that time said “the 2010 Dodge Ram increased its gross combined weight rating by 1,500 pounds without any component or calibration changes to the vehicle.”

So, what’s the read? Did Ram under-rate the towing capacity on the 1500, or is this simply double talk? Comment below.

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You can read the full comparison here, and if you have the time I highly recommend it. It’s a great insight into all three trucks as well as a fantastic example of what it takes to complete a true, exact comparison.

It also raises an interesting question: If all the trucks are essentially equivalent, how do you pick the right truck?

The Results Are Close

If you read the whole comparison and look at the charts, you’ll find that the differences between these trucks are really pretty small. I would summarize it this way:

• The GM trucks ride and handle very well loaded or unloaded, and their all-around performance makes them a great choice for almost any task. However, the interiors aren’t as nice and the style is older.
• The Ford trucks are incredibly powerful, but that power isn’t as well managed as the other trucks. Both the Ram and the GM trucks have better “driveability.” The Ford’s interior and style is second to none.
• The Ram trucks aren’t as powerful, but they do a lot of things very well. Towing and hauling performance is only “adequate” in comparison, but the Ram has good road manners, good style, and a nice interior.

Some interesting tidbits:

• The Ford didn’t have the latest power update, and it was limited by the traction control software. I got the feeling that testing the truck with traction control/stability control OFF would have improved the Ford’s results.
• The GMC and Chevy were tested as the same truck. I think this is critically important, because GM provided these trucks for this test. If the GMC HD and Chevy HD truly were different, GM would have made that clear. This is one more sign that there’s no appreciable difference between a Chevy and a GMC.
• The Ram’s 5 speed transmission killed it. If the Ram had a 6 speed like GM and Ford, it might have won.

How To Choose The Right HD Truck

If you’re a die-hard BRAND X enthusiast, your mind is already made up. You buy whatever brand you like and you feel good about it because, according to the tests, these trucks are all pretty close.

If you’re open to any possibility, your decision is much tougher. While there are some areas where one truck performs better than the others, there’s no clear all-around winner. Don’t get me wrong – the trucks are not the same in terms of pulling ability, braking, etc., but it seems like you give a little in one area to make up for it in another. Unless you really need a truck that does one specific task well, there’s no clear performance advantage to be found.

Therefore, the decision should be based on comfort, safety, quality, and finances. Since all these trucks are inherently safe (anything this massive will do well in a typical crash), it really comes down to comfort and finances:

1. Is the truck comfortable? Are you going to enjoy sitting in it on a cross-country trip?
2. Which truck costs the least with the equipment you want?
3. How good is resale value?
4. How much is insurance?
5. What truck gets the best gas mileage for your typical use?
6. Which truck has the best quality?

While it’s easy to answer numbers 1-5, there’s no clear answer to number 6…and that’s the rub. Comparison tests are great for figuring out which truck can do a certain task better than another, but quality isn’t so clear cut.

Quality Is Unknown

None of these manufacturers have had a bullet-proof reputation for HD quality over the last 15 years. Dodge HDs were often described as a great engine surrounded by a mediocre pickup plagued with front-end problems, brake problems, etc. Ford’s SuperDuty was plagued with engine and transmission problems. GM HD’s have had a nice mix of transmission problems and general quality issues, etc.

JD Power doesn’t rank HD trucks. Consumer Reports offers some ratings, but they think the best truck on the market has a V6 and tows 5k lbs (Ridgeline). Manufacturing quality reports from Harbour don’t draw a clear distinction between Ford, GM, and Chrysler…there are no authoritative studies to support quality claims from one brand to the next. Perhaps the quality is all pretty even too.

The Choice

If I had to choose one truck – based on all the criteria listed – I might go with the Ram HD Diesel. It’s the least expensive diesel of the bunch by a large margin (about $8k), it has great resale, I know I would be comfortable, and the operating costs of the Cummins are usually very low.

Having said that, the Ford’s power would be nice when pulling up I-70…and if I’m going to spend the money on a Ford, I really owe it to myself to consider the GM too.

What do you think? Which HD truck is best? Be sure to vote and comment below.

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First, my heart goes out to the friends and family of dozens of people today that were either killed, injured, or witness to a really awful racing accident. The video below tells the story:

Click here to view the embedded video.

The driver, according to a few opinions I trust, was doing what he was supposed to be doing (racing) and his truck got away from him. There are people trying to find someone to blame right now – the BLM, for example, has said that their use permit required drivers to slow to 15mph when they were within 50′ of spectators – but anyone who watches these races will tell you that’s a rule that is not followed. The fans were too close, and there are no easy answers as to how to solve this problem. Frankly, it’s a little surprising something like this hasn’t happened before.

By the way, I don’t want to show it, but there’s a CBS news video of the accident taken about 100 yards away from the scene here – it’s not gruesome, but it’s not easy to see.

Donations to the victims are being accepted here.

Clearly, off-road race organizers are going to have to figure out how to keep crowds safe from this point forward. The tough part is going to be able to do that cost effectively. Off-road courses are vast, and fencing off miles and miles of road to keep spectators back isn’t financially feasible. Wes Kibble, someone I follow on Twitter, has said that racers are afraid insurance costs will become so prohibitive as a result of this accident that the sport may suffer significant harm.

Off-Road.com has written an interesting article about this event and it’s potential impact on the future of the sport – let’s hope that someone can come up with a way to take keep crowds safe without hurting the sport.

Ford Gets Aggressive Closing Out 2010 F150s

Ford offers as much as $7500 in cash rebates on the 2010 F150

Any hard-core Ford fan will tell you that the F150 is the best truck on the road, and they’ll often point to Ford’s tremendous sales figures as “proof.” Unfortunately, this perspective is a little simplistic:

1. Ford sells a lot of F-series to fleet customers who are, more often than not, simply looking for the best price
2. Ford has a great dealer network that reaches every customer in the USA
3. Ford is willing to put big cash up to sell trucks every year – $7500 on some 2010 XLTs, for example

Don’t get me wrong here – Ford makes one hell of a truck and I’m a big fan. However, don’t let the sales figures fool you – it’s pretty easy to “win” a sale when you’re offering a massive cash incentive to people to buy your truck. Sales figures are part of the puzzle, and definitely an indicator of a solid product, but they should always come with an asterisk and a disclaimer that reads *A lot of these trucks were heavily discounted and/or sold to fleets.

Toyota Leads TrueDelta Reliability Survey

Yesterday I wrote that no one really knows how Toyota’s reputation for quality and reliability has faired since the unintended acceleration scandal. However, according to a reliability survey from the website TrueDelta, Toyota’s reputation is fine. The Truth About Cars writes:

Despite the recent media circus, Toyotas continue to be most consistently better than average

Is this scientific, exact proof that Toyota’s reputation is intact? No.

Is this interesting data that supports study results from JD Power and Consumer Reports about Toyota quality and consumer perceptions? Yes.

Toyota may or may not be number one in the public’s, but by all accounts their products are excellent. Of course, if you’re reading this, you probably already knew that.

Check out this list of available Toyota Tundra shocks

The popular perception of Toyota is, in a word, excellent. Toyota has led all automakers in Consumer Report’s brand perception study for years (if you doubt that, see studies from 2007, 2008, 2009, and 2010).

Why Does America Think Toyota is So Great?

Again, setting recent events aside (who knows what impact they have had), it’s likely that Toyota’s great reputation is a result of two things:

1. PR, brand management, etc.
2. Word of mouth

Since every automaker has PR and brand management people, I don’t think that’s a big part of the puzzle. I think it’s because all of us – everyone in America – knows someone who has had a great experience with a Toyota. I’m not saying that all Toyotas are perfect of course, I’m merely pointing out that all of us (or almost all of us) know somebody who knows somebody who swears by their Toyota. I think that’s Toyota’s key advantage when it comes to perception.

Using A Good Reputation 2.0

For a long time, Toyota used this great common perception of their brand to justify higher prices. Like Honda, Toyota resisted offering discounts and incentives on their vehicles for years, reaping substantial profits in the process. As recently as September 2008, Toyota’s average incentive was less than half the industry average. Times, of course, have changed. Toyota’s average incentives in July, 2010 were as high as they’ve ever been.

Now it seems that Toyota might be trying to use this great reputation differently. Instead of “riding” on that reputation to generate profits, they’re actively building that reputation in a first-person, “web 2.0″ sort of way that reinforces the beliefs that many of us already have.

First, we had a very compelling series of videos about a Tundra that lived on a cattle ranch.

Click here to view the embedded video.

This “Tundra deconstructed” series is a great example of authentic, first-person testimonials that are pretty hard to argue with. Even if you’re not a Tundra fan, it’s hard to think that the ranchers in this video aren’t the real deal.

Next, we had a funny series of videos featuring the “typical” American family buying a Sienna minvan, trying to reconcile the utility of the vehicle with the popular perception of vans.

Click here to view the embedded video.

Funny and personable, it’s a good way to poke a little fun at the product while still selling cars. The video above, for example, has been seen 5.4 million times (as of today).

Finally we have Toyota Stories, a new website that features first-person accounts from Toyota owners like the one below:

Great towing truck - Submitted By: Joseph W. – Hammonton, NJ

Hi, I have a 2008 Tundra and pull a fifth wheel 10,000 trailer. We just stayed in Fl in Nov. at Fort Wilderness. The Tundra pulled that trailer with no problem over 3000 miles on that trip. Keep building great trucks Toyota.

There are hundreds of stories like the one above on the Toyota stories website, and they help reinforce the popular perception of Toyota because they’re “social proof” – real stories from real people (typos and all) that all like Toyota.

It’s my opinion that all of these efforts point to a shift in Toyota’s marketing strategy. By using individual perceptions of quality, Toyota can get us to believe stories like the one told in the deconstructed video or on the website. By making fun of themselves in the Sienna ads, Toyota is showing us that even people who don’t really want to buy their product still buy their product, perceivably because of quality (it’s definitely not because the Sienna is cool).

Whether or not this will result in sales success and reduced incentives is hard to say – it doesn’t do much to “win over” people who don’t already like the brand – but it seems like a smart strategy to me.

What do you think – are these efforts a smart move or just business as usual?

Check out this list of available Toyota Tundra shocks

Brakes weren’t applied by drivers of Toyota vehicles in at least 35 of 58 crashes blamed on unintended acceleration, U.S. auto-safety regulators said after studying data recorders.

The National Highway Traffic Safety Administration also saw no evidence of electronics-related causes for the accidents in reviewing the vehicle recorders, known as black boxes, the agency said today in a report to lawmakers.

…“At this early point in its investigation, NHTSA officials have drawn no conclusions about additional causes of unintended acceleration in Toyotas beyond the two defects already known — pedal entrapment and sticking gas pedals,”

Finally, the truth comes out, and we know who was lying about this data three weeks ago, and we know that Toyota’s throttles – as we have said all along – are just fine. Driver error is to blame.

What’s Next For Toyota

While this report is great news, sadly, it’s not seen as “proof” in the eyes of many so-called safety advocates. Rather than accept the facts:

• Toyota has never found a flaw in their system despite multiple internal studies. Toyota’s latest study analyzed the data recorders of more than 4,000 vehicles that supposedly ran away. In all 4,000 cases, the driver had their foot on the wrong pedal.
• NHTSA has studied Toyota’s electronic throttle systems on at least three separate occasions, and never found a flaw.
• Toyota suppliers have studied the electronics many times – no flaws found.
• MIT
• Exponent
• NASA
• The National Academy of Sciences

…all of them couldn’t find a problem with Toyota’s electronics. While Toyota DID have a problem with sticking pedals and floor mat entrapment, there has never been a documented incident of a Toyota with an electronic throttle problem.

Not one.

Of course, the LA Times reporters who “broke” this “story” about runaway Toyotas and alleged electronics problems (see “Data Points to Toyota’s Throttles, Not Floormats“) are no where to be found right now. When a reporter gets something so incredibly WRONG that they cause a national panic, destroy billions of dollars in stock value, and subject a company and it’s employees to ridicule, the least they could do is acknowledge some fault.

Instead, these two “gentleman” won an award. Shameful.

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1. NHTSA’s investigation of so-called “runaway” Toyotas is complete
2. After studying 40 alleged instances of sudden, unintended acceleration, NHTSA determined 23 of these reports were plausible
3. After reading the engine data recorder in each of these 23 vehicles, EVERY recorder showed that the vehicle’s throttle was wide open at the time of the crash

If this former head of NHTSA’s recall division is correct, NHTSA’s study is done…and it has found that Toyota has no electronic throttle problems.

This News Has Been Reported Before

This is the second time that The Wall Street Journal has reported this NHTSA study result. About three weeks ago, the WSJ said that NHTSA’s study seemed to have vindicated Toyota’s throttle systems. This news was “anonymously denied” almost immediately by someone in the Department of Transportation (DOT), and this anonymous DOT source claimed that the WSJ report was planted by Toyota.

Of course the Journal maintained that their report was correct, creating a situation where someone had to be lying. Could Toyota have planted a story, or was NHTSA trying to hide the results of their study from the public?

Congressman Joe Barton got involved and asked NHTSA to either:

1. Come clean about the results of their study and share their data, or…
2. Demand a retraction from the WSJ for printing a false report

The congressman’s demands – issued nearly two weeks ago – seem to have been ignored. NHTSA’s spokespeople maintain that their study is still being completed, yet the Journal has not been asked to retract their report.

Politics At Play?

Some conservative bloggers (yes – quite obviously biased but not necessarily incorrect) believe that NHTSA’s unwillingness to divulge their study results is a political play by the administration to garner union and/or trial lawyer support. While that may or may not be true, it’s easy to see why someone might think this process has been politicized…here’s a quote from Mr. Person that could be construed as proof of political influence:

“The information was compiled. The report was finished and submitted,” Mr Person said, “When I asked why it hadn’t been published I was told that the secretary’s office didn’t want to release it,”

According to The Truth About Cars (TTAC), this statement was in fact regarding DOT Secretary Ray LaHood (a proven idiot). According to TTAC:

For those who think the matter can’t possibly be political, and if at all, the poor NHTSA  is a victim of the media, George Person has a message: “It has become very political. There is a lot of anger towards Toyota.”

George Person’s damning conclusion: Transportation officials “are hoping against hope that they find something that points back to a flaw in Toyota vehicles.”

In their excellent report (link), TTAC made one other interesting discovery: The current head of NHTSA (David Strickland) was an associate director at the American Trial Lawyers Association between 1996 and 2001.

Adding it all up…

1. The Wall Street Journal may have as many as two separate sources who claim that NHTSA’s investigation shows no Toyota throttle problems
2. NHTSA has said that their investigation is not complete, but they have not asked the Journal to renounce or retract any reports
3. A former NHTSA official claims that the report is being held back for political reasons
4. The current head of NHTSA has strong ties to the Trial Lawyer’s Association
5. Many members of the Trial Lawyer’s Association are currently suing Toyota, not to mention that this entity is a major campaign contributor for the Democratic party

Based on these facts, it doesn’t take much of a leap to conclude that politics are at work. Having said that, it’s just as likely this is nothing more than  government bureaucracy and inefficiency on display.

For the record, it really doesn’t matter why NHTSA’s report hasn’t been released. All that matters is that NHTSA’s investigation is accurate and thorough – the truth will come out (eventually). When it does, we’re sticking to our original point: Toyota’s electronic throttles are just fine.

*Special thanks to Chris for contacting us with a useful link that spurred this post.

Check out this list of available Toyota Tundra shocks

In fact, this might even be a sign that the economy is recovering. Some economists say that truck sales are tightly linked to construction, which is linked to investment. Who knows if this is true, but it’s a good thing to think about.

Tundra Market Share Climbing Too

PickupTrucks.com keeps a running tally of annual sales, and a quick look at their July numbers shows that the Tundra is rising while the Ram1500 is probably sliding. I say “probably” because the Ram numbers from PickupTrucks.com include both HD and LD numbers, but it’s unlikely that the new Ram HD is selling worse than the old design it replaced, so it must be the 1500 that’s down.

We’ll have to wait and see, but it seems more likely than ever that the Tundra will outsell the Ram 1500 in 2010. As we said a couple of months ago, Tundra vs. Ram sales figures are pretty meaningless by themselves. Perhaps there is some sort of symbolic benefit in out-selling the Ram, but only if it’s done without relying on heavy incentives.

As of today, a 2010 Tundra in Denver can be purchased with zero percent interest for five years. A 2010 Ram has the same incentive, PLUS an extra $1000 cash. Based on this admittedly small sample, it seems that the Tundra isn’t dramatically less expensive than the Ram. Perhaps Toyota is winning the sales battle on features and value.

Or perhaps consumers are reluctant to buy a truck from an Italian automaker!

Ford and GM Still King, Tacoma Sliding

Ford is really selling the heck out of the F-series trucks, and they’re currently leading GMC and Chevy combined for the annual sales title. It’s definitely a great year to own Ford stock.

The Tacoma’s sales are down, but this is a result of a really strong 2009 more than anything else. The Taco was one of the only trucks with increasing sales during last year’s terrible market. It isn’t so much that the Tacoma is slow – more that last year’s numbers were exceedingly strong.

What do you think – Will consumers grant Toyota any additional credibility if the Tundra outsells the Ram 1500 this year?

Check out this list of available Toyota Tundra shocks

We’ve decided that the best way to keep track of planned 2014 Tundra enhancement and upgrades is to create a page dedicated to the next-gen Tundra. Visit our new 2014 Toyota Tundra page to read about new features that the next Tundra will definitely have, features we think it will probably have, and features we’ve heard that it may have.

The new 2014 Tundra page will be updated regularly, so be sure to bookmark it!

Check out this list of available Toyota Tundra shocks

The reason? The Sequoia retains a significant chunk of the market – anywhere from 20-30%. Our sources say that Toyota is reluctant to walk away from any segment where they have a decent performer. You can see the numbers below for more info.

NOTE: These numbers are intended to represent vehicles similar to the Sequoia in terms of potential customers. Obviously, the ‘XL’ models from GM and Ford are more capable, the Escalade is more luxurious, etc. If these aren’t included in the comparison, the Sequoia’s strength in the marketplace is even more obvious.

Sales Figures Aren’t The Whole Story

The Sequoia, it seems, has three enemies at Toyota.

1. Execs are concerned that the full-size SUV segment may disappear or become unprofitable. New fuel economy regs will make full-size SUVs even more expensive than they are now, and it’s thought that most consumers will walk away from the segment if prices continue to climb.
2. Design and development profits are hard to recover on low-volume vehicles. While the Sequoia will likely share many parts and a platform with the next-gen Tundra, there are still a lot of costs involved in creating the SUV. There is concern that those costs can’t be earned back.
3. Japan doesn’t get it. Despite recent public assurances from Akio Toyoda, it seems that Japanese execs are still calling most of the shots. As a result, there’s a fundamental disconnect between Toyota’s decision makers and the people making the case for the Sequoia.

Based on our conversations, it seems clear that the Sequoia is definitely being considered for elimination. However, our sources stressed that this decision isn’t final. So, rather than saying the Sequoia is going to be cancelled, we’ll say that it’s on life support.

Check out this list of available Toyota Tundra shocks