Toyota's new Tundra aims for luxury buyers

• Toyota is introducing the new Tundra at the Chicago Auto Show
• It is the first redesign of the pickup since 2007
• Two new levels are being added aimed at luxury truck buyers

CHICAGO — Toyota sent shivers through Detroit six years ago by taking aim at its most profitable vehicles with a completely redesigned full-size pickup.

The 2007 Toyota, the company's second-generation effort at a full-size pickup, bolted out of the gate with sales of nearly 197,000 that model year.

But that was Tundra's peak. Since then, it's been battered by the recession, hurt by Toyota's recall-damaged reputation and overtaken by rivals' updates.

Now the big Japanese automaker is trying again with a third-generation 2014 Tundra that was unveiled Thursday at the Chicago Auto Show and goes on sale in September. It's restyled inside and out to give it a more muscular look and more refined passenger quarters.

And, taking a clue from the Detroit Three, Toyota is headlining two new high-end, lavishly appointed models for buyers whose unmuddied boots are always hand-tooled. No hint of prices, but the top-end models of Ford, GM and Ram pickups range from $54,000 to $60,000.

And they give the automakers prestigious models to show off, putting a sheen on the whole truck lineup and making dollar-conscious business buyers feel as if they're getting bargains when they spring for $35,000 trucks.

The Tundra continues to try get a bigger piece of a pie dominated and staunchly defended by the Detroit Three, which depend on pickups for most of their profit.

"The big-truck segment is the only one Toyota wasn't able to conquer," says Jesse Toprak, veteran industry-watcher at TrueCar.com. "So there's some pride resting on it."

For the domestics, it's about a lot more than pride. Ford F-Series, the nation's best-selling vehicle for decades, accounts for two-thirds of Ford Motor's U.S. profit, estimates Adam Jonas, analyst for Morgan Stanley. Detroit makers need those profits to stay afloat and healthy as non-truck buyers increasingly turn to lower-priced small cars.

In the face of Tundra and a new full-size Nissan Titan expected for 2015, Detroit isn't sitting still. General Motors just introduced a new lineup of full-size trucks, the 2014 Chevrolet Silverado and GMC Sierra, on sale second quarter this year. Ford showed a concept called the Atlas at the big auto show in Detroit last month that is the forerunner of its next F-150 that is likely a year or more away. And Chrysler's Ram gave its pickup a significant update for the 2013 model.

The new Tundra will only increase that competition. For buyers, it could mean a protracted price war as makers try to steal one another's buyers. The big-pickup market is growing as the economy inches up, and pickup sales are expected to rise 10% this year vs. a 7% gain by the overall new-vehicle market, says TrueCar.com.

Tundra is dramatically restyled in a way that seems aimed to lure more die-hard truck buyers.The new design "emphasizes heft and masculinity," says Jack Nerad, analyst for Kelley Blue Book who attended the unveiling here. "There were those who thought (the current Tundra) was not brawny enough."

Tundra was designed at Toyota's studio in Newport Beach, Calif., and will be built at its plant in San Antonio. But underneath all that swoopy new sheet metal, Tundra remains largely unchanged from the underpinnings of the model it will replace in September.

The big change comes in how the new Tundras will be outfitted. Besides the three current trim levels, Toyota is adding two pricier ones that fill the trucks with more gadgets, premium leather and just about every other luxury. One is simply called Platinum. The other is the 1794 Edition, named for the ranch on which Toyota's Texas truck factory was built.

The Platinum will feature perforated black leather-trimmed seats and instrument panel inserts to give it an "urban" feel. The type of leather is a first for a Toyota truck. Other niceties include a 12-speaker JBL audio system, heated and ventilated front seats and a rear cross-traffic alert.

The 1794 Edition is similarly upscale but goes the cowboy route, with lots of embossed leather to evoke saddle gear.

The new Tundra will continue to offer three cabs — regular cab, a four-door "double cab" and the four-door CrewMax.

The powertrains carry over from 2013. They include a 270-horsepower, 4-liter V-6; a 310-hp., 4.6-liter V-8 and a 381-hp. 5.7-liter V-8. No diesel or hybrid is offered, but Toyota officials here did not rule them out. Ford and Toyota are still jointly researching hybrid systems for pickups, notes Bill Fay, Toyota's group vice president. "They're still talking."

Toyota's first Tundra full-size pickup was in 2000, when it replaced the smaller T100. But Tundra didn't become a full contender until the 2007 model year when it was completely redone based on research into truck buyers' needs and enlarged to better rival Detroit's mainstays. Making Detroit makers doubly wary, Toyota built its new pickup plant deep in the heart of Texas, America's best truck market.

Toyota sold 196,555 Tundras of that model year, increasing its share of the market to 8.9%, according to Edmunds.com. But sales fell with the economy and last year, Toyota sold just 101,621, dropping its share to 6.1%.

Trying to compete not just for numbers but profits, Toyota is embellishing the Tundra to be a contender in the lucrative high-end.

Ford says about one in three of its pickups is priced at more than $35,000 — and it has kept adding new upscale models, too. Meanwhile, Chrysler's Ram created a new luxury pickup last year, and General Motors continues to expand its GMC Sierra Denali luxury models.

"They are making great profit on full-sized pickups, period," says Mark Williams, editor of PickupTrucks.com. "You tag on the premium options packages, and it's just profit stacked on top of profit."

But Morgan Stanley's Jonas notes that while high-end trucks allow makers to pack on profits, they are still a relatively small part of the market — not enough to move the needle for earnings reports.

Toyota isn't deterred. "The segment is moving more in that (the upscale) direction," Fay notes. "We're adjusting our strategy and direction."

Ford's F-series and Chevrolet's Silverado remain the two biggest-selling vehicles in the U.S., as they have for years. And truck buyers are notoriously brand loyal, making it even harder for Toyota to poach market share.

But it's going to make another try with its new Tundra.

FULL-SIZE PICKUP MARKET IN 2012

Total sales:

Ford F-150 . . . 645,316
Chevrolet Silverado . . . 418,312
Ram . . . 293,363
GMC Sierra . . . 157,185
Toyota Tundra . . . 101,621
Nissan Titan . . . 21,576

Source: Autodata

Transaction prices:

$20,000-$29,999 . . . 10.3%
$30,000-$39,999 . . . 56.4%
$40,000-$49,999 . . . 24.6%
$50,000-$59,999 . . . 8.8%

Source: TrueCar.com