General Motors Co. said its new Chevrolet Colorado midsize truck
will start at $20,995, about $500 less than its primary target,
Toyota Motor Corp.'s Tacoma pickup.
The Detroit auto maker's aggressive pricing, announced Tuesday,
signals its determination to reclaim market share in a segment it
abandoned about two years ago. The Colorado and its sibling, the
GMC Canyon priced at $21,880, will begin rolling into dealer ships
in the fourth quarter.
GM says the Colorado and Canyon will appeal to younger pickup
truck consumers who want the flexibility of a full-size pickup
truck but in a more maneuverable, efficient package.
Toyota has about 70% of the market for the midsize pickups. It
sold about 159,500 of the trucks last year.
"We expect an all new pickup with an attractive price to change
the conversation among truck customers," a GM spokesman said.
"Colorado will bring a lot of midsize truck fans back into the
market, and offer a cost-effective alternative to technology
intensive full-size trucks for commuters and casual users."
Ford Motor Co. and Fiat Chrysler Automobiles NV, for now, are
taking the opposite view and keeping clear of the midsized pickup
truck market. Both Ford and Chrysler once sold small and midsize
pickups, but dropped them to concentrate on selling more efficient
versions of their more profitable, larger trucks such as the Ford
F-150 and Dodge Ram.
Toyota now dominates what's left of the midsize truck segment,
selling 88,398 Tacomas through the end of July. Nissan Motor Co. is
a distant second notching 41,740 sales of its Frontier pickup
truck.
"The Tacoma sets the standard for compact pickup quality,
durability and reliability at a great value," said Bill Fay, Toyota
division's group vice president and general manager. "As more
customers are drawn to the segment, Tacoma will continue to deliver
on this promise and benefit from this increase in shopping."
U.S. sales of the Chevy Colorado and GMC Canyon peaked in 2005
with 163,668 vehicles combined. In contrast, GM sold 664,803 of its
full-size Silverado and Sierra trucks in the U.S. last year.
Write to Jeff Bennett at jeff.bennett@wsj.com
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