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We live in a time where worldwide communication is instant and financial markets are interdependent on each other. The idea that the "big three" auto manufacturers are the American companies of General Motors, Ford and Chrysler is as outdated as the term "half ton pickup." Daimler Chrysler is based in Germany, and GM is certainly a worldwide company with over 30% of its revenues from overseas markets. But with the US full of imports, why don't foreign pickups hold a larger share of the US market? How did frozen chickens from 40 years ago keep the American pickup market dominated by trucks manufactured by the "big three"? How are foreign manufacturers getting around the chicken tax? It all started with the great success American farmers were having selling frozen chickens in Europe. In 1962 the European Economic Community raised the import tariff on American chickens and the United States retaliated with among other penalties a 25% tariff on imported trucks like the Volkswagen pickup. The tariff failed as our chicken trade to Europe was choked to death and the German Volkswagen pickup was priced out of the market here in the United States. American built pickups still enjoy the protectionist advantages of the chicken tax and trucks from Ford, GM and Dodge dominate, accounting for 87% of the pickup sales in 2001. So how did the imports learn to compete? Simple, they built plants in North America and avoided the tariffs. Today over 32 foreign vehicle nameplates are built in the United States. One of the leaders in this "build American" movement is Toyota, which is in the midst of building their latest plant right smack in the middle of truck country. The San Antonio Texas plant represents an $800 million investment and will produce 150,000 Toyota Tundra trucks each year. With light trucks and sport utility vehicles making up over 55% of the American automobile market, Toyota is targeting this juicy market segment with trucks made right here in our back yard. One of the new and exciting models to come from Toyota is the 2005 redesign of the Toyota Tacoma initially built in the New United Motor Manufacturing Inc. (NUMMI) plant in Fremont California. Coincidentally the NUMMI plant is a joint venture between Toyota and General Motors. Historically Tacoma represents the entry point for many to the Toyota family. Small, economical to operate, rugged, dependable and extremely affordable, this was the coveted first vehicle for many a young man. For 2005 however the Tacoma is growing up, maturing if you would, into more of a mid-size truck still targeted directly at the young and young at heart. While nearly six inches longer and four inches wider it is more maneuverable than previous models. The V6 model gains an additional 50 horsepower while boasting of better fuel economy with either the four or six cylinder models. Beefier chassis and upgraded suspension improved the ride and provided a platform to develop a dynamic X-Runner sport truck. The 245 horsepower X-Runner model will be the aspirational model for those seeking a high performance street truck with outstanding handling. This is a vastly improved and larger truck than the previous award winning Tacoma. However, Toyota does risk alienating the loyal base of those who want a small compact spartan economy truck. This larger truck could certainly serve as the primary vehicle for a young family. I had plenty of room in the rear seat of the Double Cab for even an extended trip. "Tough and Fun" will remain the core marketing message for the 2005 Toyota Tacoma. Designed for fun, this compact pickup is tough enough to play and run with the big dogs. Even the composite bed with unique adjustable tie downs enhances the utility of this workhorse. American trucks still have the lion's share of the market, but with over half of the vehicles sold in the United States now pickups and sport utility vehicles, Toyota will find a way to earn their share of the market. It will take more than a chicken tax to keep great products like the 2005 Toyota Tacoma out of the hands of those who want a tough and fun truck built in North America.
2005 Toyota Tacoma
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©2003 - Stan Risener