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Toyota Offering $2,000 To Dealers



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DETROIT Toyota Motor Corp. has extended a special offer to its dealers nationwide, offering them $2,000 to purchase base-model "B-cab" editions of the Tundra pickup, which was redesigned for the 2007 model year to better compete with Detroit's Big Three auto makers in the full-size truck war.
The company kicked off the program this week offering its more than 1,200 Toyota dealers in the U.S. the incentive as a way to better motivate them to purchase the new Tundra for use as a parts delivery truck. Toyota spokesman Bill Kwong said the program is somewhat unique for Toyota and is a way to gain exposure for the new Tundra, which went on sale in February. Dealers typically have to go through other channels to buy the pickups for their own use, and this deal will save them time and money, the spokesman said.
The incentive expires April 30 and is available for Lexus, Scion and Hino Motors Ltd. truck dealers, all of which sell vehicles built by Toyota. At the same time, the auto maker is giving dealers cash incentives that can be used at their discretion to discount B-Cab editions of the 2007 by up to $1,000 on a nationwide basis, Kwong said. In some regions, the incentive is as high as $1,500.
A base model variant of the vehicle, which is composed of a basic two-door cab, carries a base price of $22,290, or more than $2,000 higher than a base Ford Motor Co. F-150, which is the traditional segment leader.
Toyota's 2007 Tundra comes at a time when the auto maker is making a strong push into the full-size truck market. The company, in what was seen as a surprising move, priced its trucks higher than the domestic competition in some cases, and now is offering special programs to make the vehicles more affordable in some cases.
Traditionally, General Motors Corp., Ford and DaimlerChrysler AG's Chrysler Group have dominated the profitable full-size truck arena. In February, the trio accounted for 91 percent of the segment, while Toyota grabbed 5.5 percent, according to Auto Data Inc.
As Toyota ramps up incentives, domestic auto makers are also hitting the gas on a wide variety of promotions aimed at selling more pickup trucks. GM on Thursday kicked off a 20-day incentive campaign that offers 0 percent financing for 36 months and $1,000 off certain versions of its redesigned full-size pickups. Chrysler is offering a free Hemi engine upgrade and up to $5,000 cash back on some Dodge Ram pickups.
Toyota has made significant inroads in the U.S. in recent years, currently threatening to overtake Ford as the No. 2 auto maker in terms of sales. But much of the gain has been built on sales of more fuel-efficient passenger cars.
The company's launch of the 2007 Tundra has been seen as a watershed event for Toyota. The company has manufacturing capacity to build more than 300,000 Tundras between two plants in San Antonio and Princeton, Ind. It sold 124,508 copies in 2006, according to Auto Data, but is shooting to boost that number by 60 percent this year.