Toyota Raising Price On Hybrids In Japan

TOKYO — Toyota is raising its prices for the Prius and Harrier hybrids in Japan in response to the soaring cost of steel and other raw materials _ the first hike here without a model makeover in three decades.

Speculation had been rife that Japan's top automaker would raise some domestic prices soon, and Toyota has acknowledged that as risky because the domestic market is already sluggish.

The new suggested retail prices, announced Monday, show an average increase of 3 percent for the two gas-electric hybrid models, and an average 2 percent of several commercial vehicles.

Starting next month, the Prius basic S model will go up by 73,500 yen ($668) to 2.38 million yen ($22,000).

The Harrier Hybrid Premium S Package will go up by 136,500 yen ($1,240) to about 4.76 million yen ($43,000), Toyota Motor Corp. said in a release.

Other Japanese automakers may follow. With steel prices surging, Nissan Motor Co. Chief Executive Carlos Ghosn has hinted he is waiting for its bigger rival to take the lead to make it easier for others to raise their prices, too.

Toyota said it has struggled to keep prices down with cost cuts, but material costs are expected to stay high for some time.

"Recent further price increases in raw materials have been larger than TMC's cost reduction efforts are able to offset," it said.

Like other automakers, Toyota has raised its U.S. prices without major model changes previously.

The last time Toyota raised prices on Japan models was in 1974, by 10 percent, in the wake of the first oil shock. It also hiked prices in 1973, by 7 percent, as well as on its commercial vehicles such as trucks and vans in 1992.

Otherwise, Toyota has not raised prices in Japan except for remodeling that happens only once every several years in which improved features are added.

Although Toyota has averted some of the serious troubles of its U.S. rivals General Motors Corp., Ford Motor Co. and Chrysler LLC, even Toyota is struggling to fight skyrocketing energy prices, the crunch of material costs and fears of stagnation on global markets.

Toyota, which also makes Lexus luxury models and the Camry sedan, reported a 28 percent drop in its April-June quarterly net profit.

It is forecasting its first full-year profit decline in seven years as it faces more problems from the weakening U.S. market.

Comments

[Dan1967]

McCain will be 72 years old this Friday and his policies are the same policies as Bush. Do you want 4 more years of the same old policies that have our country in the mess that it is in now?

McCain is for NAFTA, and Obama is against NAFTA. Barack Obama will keep jobs in our country and he will fight for the rights of American workers.

McCain owns 7 houses and he will give tax breaks only to the richest of Americans who make over 200,000 per year. Barack Obama will give tax breaks to the middle class and the poor.

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The Republicans are the party of the rich and the rich oil companies. The Democrats are the party of the people. Get to the polls in November and vote for Barack Obama and lets get a win for the people!

VOTE FOR BARACK OBAMA AND LETS GET A DEMOCRAT WIN IN NOVEMBER!

[NoPCZone]

The Toyota dealers in the US have long ago raised the price on the Prius. I got an e-mail from a Toyota dealer recently offering to sell me a used Prius with 30k miles + for over $26,000- more than it listed for brand new.

[KillTheMessenger]

Well, hindsight is always 20/20. If more people had bought hybrids three or even four years ago when the price of oil was already significantly higher than in 2002, Toyota and Honda would have expanded their production earlier and then the used hybrid car market would not be so crazy, either. But our good old "conservatives" in the US decided that oil prices could not possibly go higher, so why "waste" money on a car that actually gets good mileage.

And today the whining can be heard all over the place. And nobody cares. Stop it and pay up!

:-)

[torrrep]

No thanks. I think i'll stick with the big toyota V8.

[Darkdonnie]

Toyota's windfall profits are unbelievable and they should be federalized by the government and put a hybrid in every driveway in America! Everything will be fair and balanced and our news will always be good. Healthcare will be given at no cost run by the government. Our air will be clear in ten years because if the gore say's it and it will be done. All of our goods and services will be provided by union workers at a fair wage. All the poor in the world will be fed by us. All capitalist will be in concentration camps. Nobody will hate us because we are all liberals.

Wa….wake up WAKE UP what a nightmare!!!!!

[jeffbazell]

So where's the truth on this hybrid increase? Bottom line. Toyota simply sees the current and future demand for this vehicle and they're cashing in. Japan has some of the lowest prices on steel, thanks to the U.S. selling our steel to them, not to mention closing down almost every steel mill in America.

[UnbiasView]

"in response to the soaring cost of steel and other raw materials"

What didn't you understand about this? Is there plastic in the car? Yes, cost has gone up. Is there steel in this car? Yes, cost has gone up.

[KillTheMessenger]

Wait... so we don't have steel mills in the US, yet we are selling steel to the Japanese? How does that work logically?

I am sure you mean we are selling "steel scrap" to the Japanese? And the Chinese. Indeed, we do. And they make useful steel products out of it, again, at a price that US steel mills could not beat in the past.

Stands to reason that they could not beat the price in the present, either. Which means, that if this steel were made in the US, it would have to be even more expensive than it is now... which means Toyota would have to charge even more if their cars were made from US steel.

Right?

:-)

PS: The largest steel producer, by far, is China. They are making about five times as much of the stuff as we are. Makes you wonder how close this nation is to flush itself down the drain, doesn't it?