Quote:
Originally Posted by jaaagman
I never understood why the 4Runner and the LC coexist at this point. Toyota's crossover/truck lineup at this point is insane. Is Canadian supply still seeing the same constraints? It doesn't seem like the situation has improved much since 2022. Interest rates are now much higher, so in theory, the demand should be lower...
|
Used to work in product planning and I actually think this is gonna work:
4R: for former 4Runner buyers, mostly working class.
Continues to appeal to "price sensitive" folks who are interested in "investing" in a trusted name and "reliable" off roader.
LC: Toyota's response to a few market forces; will be more limited production
- Defender moving down market in price and style but raising buyer expectations
- 3-row LC owners aging and kids aren't school aged, wanting more fun than practicality
- Dealer experience quite subpar especially in south-east
- Former FJ aspirers now having some disposable income but don't want a 4R
GX: "best engine" and interior; conservative Arizona/Utah/Socal suburb families who aren't ready for electric
Current gaps/big risks in product lineup:
1) Lexus buyer averages mid-late 50s, buying largely based on relationship/reputation.
Sales are growing but under investment in entry level product/marketing means brand sales are at huge risk in 5-10 year timeframe.
2) Two areas where TMNA led - infotainment and trucks.
Though TMNA won the infotainment bet, they'll need to sell subscriptions to keep planning influence.
Warranty costs associated w/ Tundra may see power shift from TMNA towards TMJP.
3) Frontier investments - if they can pull off solid state batteries, they have a bit of a moat.
4) Corolla / Camry / RAV4: EV leases and used EVs getting really cheap w/ long warranties.
Logical buyers and price seekers may begin to switch, especially with lower running cost.
This makes the Toyota buyer more conservative, likely with worse credit, and newer to the country.