Why Toyota Killed The FJ Cruiser

this is the Toyota FJ Cruiser it is a boxy retro off-road machine that commands high prices in the used car market and has a devoted following around the world but less than a decade ago after a rapturous initial reception and a strong start to sales that surpassed Toyota's expectations suddenly no one seemed to want one it was in part a casualty of the Great Recession and rising gas prices in the US which hit truck sales hard so why is it so popular now the FJ Cruiser debuted as a concept car in 2003 it was meant to be a salute to the classic FJ Land Cruisers that were among the first vehicles Toyota released in the United States in the late 1950s as it tried to build an international presence these vehicles are considered by many to be classics with their old-school styling that resembles jeeps and Land Rovers from the time being Hardy off-road vehicles the original FJ Land Cruisers were sold in many parts of the world where roads aren't so great and customers need solid vehicles that don't break down they were crucial in establishing Toyotas lasting global reputation for high quality and reliability the revived concept was well received and Toyota put the vehicle into production in 2006 in a form that closely resembled the original design the new FJ cruiser was like its forebears very capable off-road and bore the typically Spartan interiors of the original vehicles its design however was polarizing some appreciated Toyotas attempt to recapture some of the old FJ magic in an updated vehicle and like the FJ cruisers almost military appearance others said it looked like a toy for the first two years sales of the new FJ cruiser were good great even Toyota sold 56,000 225 in two and six and 55,000 170 in 2007 surpassing the company's target of roughly 40,000 units in a year but then in 2008 sales plummeted as the tanking economy hit truck and car sales hard the vehicle had very few close competitors perhaps the best comparisons could be made to the Jeep Wrangler and the toyota 4runner the FJ Cruiser never sold as well as either but the gap between the FJ cruiser and its more entrenched rivals widened over time some say the problem was simply that the vehicles novelty had worn off the FJ Cruiser went on for several more years in North America before Toyota finally pulled the SUV from the continent the vehicle was discontinued in other markets in the following years ending its run in Toyotas home country of Japan in 2017 with a special edition it's only gonna sell something and this is one again at its price point and with its design and the off-road nature of it there was no way I was gonna killed everybody I mean it's just one of those vehicles that it has a very specific market it can only sell so much and it's up against pretty good competition it sense that there's not a lot of competition but if you look at the Wrangler that's the vehicle that is again super purpose-built has a super big wide audience and it grabs eyeballs industry watchers say the FJ Cruiser wasn't so much a failure of product or imagination but of timing and in the US the FJ Cruiser has had a startling second act in the used market these vehicles hold their value extremely well they hold their value in three years it still holds 60 percent of its value it's like a van Gogh painting after he died it is not uncommon for discontinued or limited run vehicles to command higher prices in used markets collectors and other buyers will often pay a premium for something that is rare still the FJ cruisers values are impressive and there is a devoted following of driver who appreciate the FJ cruisers capability and unique styling and used the truck as a canvas for their own modifications and improvements as is common in the off-roading community there are some parts of the world where the FJ cruiser is especially prized the Middle East everybody wants an FJ Cruiser you can get two and three times what you may have paid for it because it's so good in the sand the funny thing is that vehicles like this have become more common and more popular in the new car market in the years since the FJ cruiser was killed gas prices are relatively low and customers are flocking to SUVs and trucks off-road ready variants are everywhere there are offroad trucks and SUVs from just about every manufacturer there are not only mainstays such as the Jeep Wrangler and much of land rover's lineup but the trailhawk trim available on several other Jeep models Toyota's TRD line of pickups and SUVs the RAM rebel the Nissan Frontier pro-4x the Ford f-150 Raptor and the Chevrolet z71 and zr2 variants you know if you look at today and where we are in that off-road segment something like the Raptor fire and help provide like a supercar halo drugs these vehicles are not high volume sellers but they can command high sticker prices and good margins for automakers the category is also expected to grow for example Ford plans to release a revived version of its Bronco to go after that same nostalgia for a classic vehicle Toyota had tried to tap with the FJ cruiser of course observers are skeptical that Toyota will bring back the FJ cruiser despite its enduring popularity but reports have surfaced the manufacturer may bring out a smaller vehicle modeled on it though Toyota has said buyers should not expect one anytime soon Toyota did not offer any comment for this story however CNBC did speak with Kevin hunter president of Toyotas culty design research studio which created the FJ cruiser Hunter told CNBC that while the vehicles look appealed to everyone's tastes the studio created it with the hardcore enthusiasts in mind the FJ Cruiser was never meant to be a high-volume vehicle he said but a niche player by virtue of its unique identity and background the market may have moved on and rising gas prices didn't help but people who really understand what the FJ Cruiser is about appreciate its capability and durability and really love the vehicle for now customers who want to get in one will have to pay nearly new prices for a hopefully not too used truck

Channel: CNBC

Views: 1,954,823

Keywords: CNBC, business, news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, financial news, Stock market news, stocks, toyota fj crusier, toyota land cruiser fj40, toyota fj cruiser for sale, toyota fj cruiser 2007, fj cruiser interior, Here’s Why You Need to Buy a Toyota FJ Cruiser

Id: 8slu9NBL38Q

Length: 7min 22sec (442 seconds)

Published: Tue Jul 30 2019