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Toyota Tundra sales outgrowing Ford, GM in Texas truck market

Toyota Tundra Toyota Motor Corp. (NYSE: TM) has moved into Ford Motor Co. (NYSE: F) sandbox and has started smashing Ford's mighty sandcastles. That's right -- Toyota trucks, notably the Tundra full-size pickup, are taking market share left and right in the state of all truck states, Texas.

Domestically, one in seven large trucks is sold in the state of Texas, and while truck sales from General Motors Corp. (NYSE: GM), Ford and Cerberus-owned Chrysler have declined 5% recently, Toyota's large truck sales have increased 79%. This is due in no small part to Toyota's aggressive incentive spending that really makes the Tundra look like a much-less-expensive but just as powerful option to competitor trucks.

GM has said in the past that it won't match Toyota's incentive spending but will rely on superior products instead. However, with customers tightening their wallets and consumer credit harder to come by, pricing does matter and Toyota is shipping up on the domestic truck makers. Sam Pack, who owns three Ford dealerships in Dallas, Texas, said that Tundra sales "are coming from traditionally Ford, Chevrolet and Dodge ... have they negatively affected Ford? No question they have.'' Ouch. Toyota also recently committed to a $1.28 billion manufacturing plant in San Antonio to make the Tundra. Does Toyota want to seize the full-size truck market? 100%. Absolutely. It now has the manufacturing location and incentive planning to do just that.

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Last updated: December 02, 2008: 05:06 PM

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