Toyota hikes prices on U.S. models

[dindak]

Nation's No. 2 automaker to increase prices about 1% on certain vehicles in May to make up for the slumping dollar's effect on bottom line.


http://money.cnn.com/2008/05/07/news...ion=2008050708

[Sinner]

I have a feeling this is just the beginning of Toyota's price increases.

[salbracht]

Most all car manufacturers increase their prices at least once a year (not counting increases on next years models).

GM Raising Prices Tomorrow On Almost All Product - $0 On Malibu, $1500 On XLR

[plane]

Come on Toyota.
Your product is worth more than you are charging.
You're leaving money on the table.
Why don't you just add $27,349.99 to the price of each vehicle and call it a day?
Trust me on this one.

[psece]

Desirable vehicles + overcapacity = PROFIT!

[Butz]

1% thats it! I was hoping for more!

[JVal14]

Yeah that's not much considering how much the dollar has tanked recently. Considering higher comodity prices, they must be eating into profits rather than let their prices inflate.

[psece]

Originally Posted by JVal14

Yeah that's not much considering how much the dollar has tanked recently. Considering higher comodity prices, they must be eating into profits rather than let their prices inflate.

Unless the Yen is pegged to the dollar in some fashion. Plus, Toyota sold over 430,533 domestically produced cars last year. Lets say the average was $20,000 revenue per sale. 1% of $20,000 is $200 dollars per car. $200 X 430,533 is $86,106,600. Over 86 million dollars just on domestically produced cars. Chump Change?

[rozz]

Originally Posted by plane

Come on Toyota.
Your product is worth more than you are charging.
You're leaving money on the table.
Why don't you just add $27,349.99 to the price of each vehicle and call it a day?
Trust me on this one.

Don’t worry....they already did and call them Lexus. And, they are laughing all the way to the bank.

[AMERICA 123]

Originally Posted by Butz

1% thats it! I was hoping for more!

It is - in some cases as much as 1.6%.

You couple this with some of the other Toyota pricing 'stories'/data before this announcement and its interesting to try and figure out what they're doing and why.

It ain't totally clear - multiple explanations are possible.

Personally, besides whats already been mentioned I wonder if its possible that internal hybrid subsidies are part of it somehow but then again, maybe not.

[AMERICA 123]

Originally Posted by psece

Desirable vehicles + overcapacity = PROFIT!

Really.

You sure about this one ?

[psece]

Originally Posted by AMERICA 123

Really.

You sure about this one ?

Ok, probably slight overcapacity but there are two ways to deal with it:

1. Lower prices and and try to get as many vehicles out the door and balance capacity and costs (GM and Fleet, $3000 off msrp, etc).

2. Raise Prices and cover the cost of overcapacity thru profit. Toyota has cars that people still want and they can get away with raising the price....

[AMERICA 123]

Originally Posted by psece

Ok, probably slight overcapacity but there are two ways to deal with it: -



- 2. Raise Prices and cover the cost of overcapacity thru profit. Toyota has cars that people still want and they can get away with raising the price....

That could be part of it - but in this market ...... I think we'll have to see if thats the way it plays out.

[plane]

Originally Posted by rozz

Don’t worry....they already did and call them Lexus. And, they are laughing all the way to the bank.

You are in great company.
It sure looks like Michael Moore agrees with you.
He's giving you the Lexus sign right now.

[mbukukanyau]

I think its time the US treasury took measures to devalue the US D again