Toyota preparing to raise U.S. car prices after all **(page 1)**
04-26-2005, 02:06 PM
#1
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Toyota preparing to raise U.S. car prices after all **(page 1)**
Toyota Motor Corp. said Tuesday it will not raise its car prices to help U.S. rivals, breaking with its chairman's comments a day earlier that voluntary price increases and other steps were in order to help restore health to the U.S. auto industry.
"Our basic stance is that prices are something for the market to determine," a spokesman at Japan's top auto manufacturer said. "We are not thinking about changing (vehicle) prices in order to help the U.S. auto industry."
Japanese brands collectively grabbed a record 30 percent share of the U.S. auto market last year, and some executives have become more sensitive about how their companies' success would play out at the political level.
At the annual motor show in Detroit earlier this year, Toyota President Fujio Cho and Honda Motor Co. Chief Executive Takeo Fukui said Japanese brands' expansion in the United States should not go unchecked, with Fukui volunteering that the combined share should be kept under 40 percent.
"I'm worried not only about GM but about the entire U.S. auto industry," Toyota Chairman Hiroshi Okuda told a news conference Monday as the head of Japan's biggest business lobby, the Japan Business Federation.
"Automobiles are the symbol of American industry, and if things go wrong there may be some kind of impact.
"As an automaker, we have to think about what countermeasures we can take," Okuda said, adding that technical alliances and voluntary price rises are possibilities.
A top Honda executive, however, mirrored Toyota's official stance that raising car prices to help the competition in North America was out of the question.
"I realize that GM, as well as Ford, are suffering financially," Executive Vice President Koichi Amemiya told a news conference at which Honda reported a fourth straight year of record earnings.
"But that doesn't mean you ignore the customer and raise your prices," he said.
Hit by falling U.S. sales and growing costs for employee health care, General Motors Corp. (Research) last week recorded a first-quarter loss of $1.1 billion, its worst result since the world's biggest auto manufacturer nearly went bust in 1992.
Its automotive operations lost almost $2 billion, most of that in North America as it offered thousands of dollars in sales incentives per vehicle to lure customers back. Even then, GM surrendered more sales to Asian brands, especially in the light trucks segment, its main cash cow.
Its rival Ford Motor Co. (Research) had a 38 percent drop in quarterly earnings and cut its North American production to reduce bloated inventories of unsold vehicles.
In contrast, Toyota and Honda, the world's most valuable auto manufacturers, are expected to report their best-ever earnings for the year that ended last month.
Japan's second-ranked Nissan Motor Co. reported its best operating profit for the fourth year in a row Monday.
GM Chief Executive Rick Wagoner has repeatedly complained that the yen is too weak against the dollar, giving Japanese auto makers an unfair edge.
Toyota and Honda have argued that they are building more than half of their cars sold in the United States locally, creating jobs for Americans.
Toyota said it was constantly studying what the appropriate price of its cars should be based on the competitive environment, costs and profits, but that it had no decision now on any changes to its prices in North America.
http://money.cnn.com/2005/04/26/Auto....reut/?cnn=yes
"Our basic stance is that prices are something for the market to determine," a spokesman at Japan's top auto manufacturer said. "We are not thinking about changing (vehicle) prices in order to help the U.S. auto industry."
Japanese brands collectively grabbed a record 30 percent share of the U.S. auto market last year, and some executives have become more sensitive about how their companies' success would play out at the political level.
At the annual motor show in Detroit earlier this year, Toyota President Fujio Cho and Honda Motor Co. Chief Executive Takeo Fukui said Japanese brands' expansion in the United States should not go unchecked, with Fukui volunteering that the combined share should be kept under 40 percent.
"I'm worried not only about GM but about the entire U.S. auto industry," Toyota Chairman Hiroshi Okuda told a news conference Monday as the head of Japan's biggest business lobby, the Japan Business Federation.
"Automobiles are the symbol of American industry, and if things go wrong there may be some kind of impact.
"As an automaker, we have to think about what countermeasures we can take," Okuda said, adding that technical alliances and voluntary price rises are possibilities.
A top Honda executive, however, mirrored Toyota's official stance that raising car prices to help the competition in North America was out of the question.
"I realize that GM, as well as Ford, are suffering financially," Executive Vice President Koichi Amemiya told a news conference at which Honda reported a fourth straight year of record earnings.
"But that doesn't mean you ignore the customer and raise your prices," he said.
Hit by falling U.S. sales and growing costs for employee health care, General Motors Corp. (Research) last week recorded a first-quarter loss of $1.1 billion, its worst result since the world's biggest auto manufacturer nearly went bust in 1992.
Its automotive operations lost almost $2 billion, most of that in North America as it offered thousands of dollars in sales incentives per vehicle to lure customers back. Even then, GM surrendered more sales to Asian brands, especially in the light trucks segment, its main cash cow.
Its rival Ford Motor Co. (Research) had a 38 percent drop in quarterly earnings and cut its North American production to reduce bloated inventories of unsold vehicles.
In contrast, Toyota and Honda, the world's most valuable auto manufacturers, are expected to report their best-ever earnings for the year that ended last month.
Japan's second-ranked Nissan Motor Co. reported its best operating profit for the fourth year in a row Monday.
GM Chief Executive Rick Wagoner has repeatedly complained that the yen is too weak against the dollar, giving Japanese auto makers an unfair edge.
Toyota and Honda have argued that they are building more than half of their cars sold in the United States locally, creating jobs for Americans.
Toyota said it was constantly studying what the appropriate price of its cars should be based on the competitive environment, costs and profits, but that it had no decision now on any changes to its prices in North America.
http://money.cnn.com/2005/04/26/Auto....reut/?cnn=yes
04-26-2005, 02:37 PM
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A free market economy is only good for the consumer in the end (until you get an extreme situation like 9/11 destroying the airline industry). Sink or swim Detroit.
04-26-2005, 02:41 PM
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Originally Posted by domn
Interesting. Surprised that raising prices to help competitors was even a cosideration.
I could see maybe if Toyota feared being accused of monopolistic competition, where they'd want to "prop up" the competition to throw off the feds. But, they're not quite that successful....yet.GM just has to deal with the hand they've been dealt (which is mainly of their own doing) and make some MAJOR changes....and it starts from above.
04-26-2005, 02:41 PM
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How are the American companies suggesting this? Why the fuck would anyone help their competitors in such a cut throat market? Especially by means of forming a veritable cartel with them?
Whether it's because the yen is weak against the dollar or if it's cause the Japs truly have mastered the automotive game... they have the upper hand and they will do everything in their power to thrash the Americans with it, even if their outwardly appearances suggest otherwise. Isn't DCX also in trouble? Not enough news about their huge fuckups recently.
Whether it's because the yen is weak against the dollar or if it's cause the Japs truly have mastered the automotive game... they have the upper hand and they will do everything in their power to thrash the Americans with it, even if their outwardly appearances suggest otherwise. Isn't DCX also in trouble? Not enough news about their huge fuckups recently.
04-26-2005, 02:42 PM
#7
The sizzle in the Steak
Why should Toyota help? It's not their fault American car Mfg. make inferior products, and market their cars horribly.
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04-26-2005, 03:06 PM
#8
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Originally Posted by Moog-Type-S
Why should Toyota help? It's not their fault American car Mfg. make inferior products, and market their cars horribly.
to that brother. Esp since our companies use price points to show advantages over european cars. Doesn't our (US) industry have any self pride!!!??? This is embarassing.
04-26-2005, 03:11 PM
#9
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I think alot of you are missing what a big peice of the problem is here.
The US can no longer be competative in the manufactoring business, preiod. Any and all of these types of US businesses will slowly disappear to cheaper foreign markets. Whether it be shoes, silicon chips, or cars.
If you dont like it, then go protest the next WTO convention.
The US can no longer be competative in the manufactoring business, preiod. Any and all of these types of US businesses will slowly disappear to cheaper foreign markets. Whether it be shoes, silicon chips, or cars.
If you dont like it, then go protest the next WTO convention.
04-26-2005, 03:35 PM
#10
The sizzle in the Steak
Originally Posted by fdl
I think alot of you are missing what a big peice of the problem is here.
The US can no longer be competative in the manufactoring business, preiod. Any and all of these types of US businesses will slowly disappear to cheaper foreign markets. Whether it be shoes, silicon chips, or cars.
If you dont like it, then go protest the next WTO convention.
The US can no longer be competative in the manufactoring business, preiod. Any and all of these types of US businesses will slowly disappear to cheaper foreign markets. Whether it be shoes, silicon chips, or cars.
If you dont like it, then go protest the next WTO convention.
It is a significant part of the problem for U.S. car makers, but building inferior products in terms of design, reliability, and marketing is also huge.
04-26-2005, 05:58 PM
#11
6G TLX-S
Survival of the fittest. It's a wakeup call for the US auto makers to become competitive, whatever it takes.
04-26-2005, 06:02 PM
#12
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Originally Posted by fdl
I think alot of you are missing what a big peice of the problem is here.
The US can no longer be competative in the manufactoring business, preiod. Any and all of these types of US businesses will slowly disappear to cheaper foreign markets. Whether it be shoes, silicon chips, or cars.
If you dont like it, then go protest the next WTO convention.
The US can no longer be competative in the manufactoring business, preiod. Any and all of these types of US businesses will slowly disappear to cheaper foreign markets. Whether it be shoes, silicon chips, or cars.
If you dont like it, then go protest the next WTO convention.
Not entirely true, foreign companies (Toyota, Honda, etc...) are making a hell of a lot of money by building their cars here. It seems that it is every couple months that you here about another foreign company spending hundreds of millions to build or improve manufacturing facilities here in the US. They are just not encumbered by the unions, pensions, etc... that the Big 3 are.
04-26-2005, 08:37 PM
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Originally Posted by goldmemberer
How are the American companies suggesting this? Why the fuck would anyone help their competitors in such a cut throat market? Especially by means of forming a veritable cartel with them?
However, I do not think that the big two will be "going down" any time soon. I mean let's be realistic. There are sooo many ways to help Ford and GM, it's funny to think the American auto industry is losing its grip.
Even if GM and Ford cannot do it alone, from a political standpoint, the gov't won't let it happen. Way too many jobs are depending on it. The gov't has a number of very effective tricks which it can pick from in order to make an impact to the Japanese competition. From subsidies, to customs taxes, to all the way manipulating the exchange rates of the Yen in particular. And let them take you to the WTO. We saw how effective that's been with the rigged Yuan for so long now.
But! THe gov't will step in only when it's obvioulsy impossible for GM/Ford mgt to find a way out of this without their help. No matter how painful.
04-26-2005, 08:56 PM
#15
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Originally Posted by gavriil
But! THe gov't will step in only when it's obvioulsy impossible for GM/Ford mgt to find a way out of this without their help. No matter how painful.
The gov't bailed out Chrysler in the 80's, and they seem to be doing ok now...
04-26-2005, 08:59 PM
#16
6G TLX-S
Originally Posted by Silver™
Not entirely true, foreign companies (Toyota, Honda, etc...) are making a hell of a lot of money by building their cars here. It seems that it is every couple months that you here about another foreign company spending hundreds of millions to build or improve manufacturing facilities here in the US. They are just not encumbered by the unions, pensions, etc... that the Big 3 are.
04-26-2005, 09:02 PM
#17
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Originally Posted by GreenMonster
The gov't bailed out Chrysler in the 80's, and they seem to be doing ok now...
04-26-2005, 09:05 PM
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Originally Posted by fdl
The US can no longer be competative in the manufactoring business, preiod. Any and all of these types of US businesses will slowly disappear to cheaper foreign markets. Whether it be shoes, silicon chips, or cars.
But here is the difference:
If the USA auto industry goes through a transformation slowly, then the gov't wont intervene. They are OK with seeing how changes in the way business is conducted affect the overall industry landscape. But if GM and FOrd start laying off by the tens of thousands and cant pay helathcare and pension bills, then they will have to step in to minimize the bleeding.
04-26-2005, 09:20 PM
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Originally Posted by Moog-Type-S
Unions, pensions, labor rules, etc. in the U.S. are killing U.S. industry...
06-10-2005, 10:10 AM
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Toyota preparing to raise U.S. car prices after all
Toyota preparing to raise U.S. car prices, report says - - Reuters / June 10, 2005 - - Source: Automotive News
TOKYO -- Toyota Motor Corp. is preparing to raise prices of its new cars in the United States by an average 2 percent to 3 percent in October out of consideration to its struggling U.S. rivals, the Asahi daily said on Friday.
A Toyota spokesman said the automaker has not yet decided to raise U.S. prices, adding it is still looking at such factors as the competitive environment, costs and profit.
The newspaper said Japan's top automaker is preparing to lift prices for almost all its new cars sold in the United States. The move would also reflect higher raw material costs and a cut in sales incentives, it said.
To help restore health to U.S. auto industry and out of fear of a possible U.S. political backlash, Toyota Chairman Hiroshi Okuda has said repeatedly for the past two months that Toyota should think about ways in which it could aid U.S. automakers -- such as by raising product prices.
Japanese brands collectively grabbed a record 30 percent share of the U.S. auto market last year, but U.S. automakers such as General Motors and Ford Motor Co. are struggling with sliding sales and massive health-care costs.
U.S. car prices are typically set higher when new models are introduced each year. But the rates of increase would be much steeper when cars undergo full-model changes every few years, the Toyota spokesman said.
A Toyota spokesman said the automaker has not yet decided to raise U.S. prices, adding it is still looking at such factors as the competitive environment, costs and profit.
The newspaper said Japan's top automaker is preparing to lift prices for almost all its new cars sold in the United States. The move would also reflect higher raw material costs and a cut in sales incentives, it said.
To help restore health to U.S. auto industry and out of fear of a possible U.S. political backlash, Toyota Chairman Hiroshi Okuda has said repeatedly for the past two months that Toyota should think about ways in which it could aid U.S. automakers -- such as by raising product prices.
Japanese brands collectively grabbed a record 30 percent share of the U.S. auto market last year, but U.S. automakers such as General Motors and Ford Motor Co. are struggling with sliding sales and massive health-care costs.
U.S. car prices are typically set higher when new models are introduced each year. But the rates of increase would be much steeper when cars undergo full-model changes every few years, the Toyota spokesman said.
06-10-2005, 10:36 AM
#24
fap fap fap
Originally Posted by gavriil
I think the result of all this will be...a boost in Toyota's net income. In the end sales will be affected marginally, but profits will soar. 
2-3 percent isnt enough to sway buyers toward domestics. more $$ in toyotas pocket
06-10-2005, 11:00 AM
#26
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Originally Posted by Infamous425
2-3 percent isnt enough to sway buyers toward domestics. more $$ in toyotas pocket
06-10-2005, 01:14 PM
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Originally Posted by gavriil
I think the result of all this will be...a boost in Toyota's net income. In the end sales will be affected marginally, but profits will soar.
06-10-2005, 03:11 PM
#28
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Originally Posted by gavriil
I think the result of all this will be...a boost in Toyota's net income. In the end sales will be affected marginally, but profits will soar.
06-10-2005, 03:12 PM
#29
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basically what biker said
06-10-2005, 03:48 PM
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I dont know guys. As I said, I dont think Toyota sales will be negatively affected in significant ways because of this price hike. In the end they will be selling well and make more profit doing it.
06-10-2005, 03:58 PM
#31
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From Kyodo News:
NAGOYA — A Toyota official told reporters that the company will explain the price hikes as a result of rises in material costs, because "it is difficult to say to dealers that the hikes are to help U.S. automakers." Japanese automakers have grabbed about a 30% share of the U.S. auto market this year, stirring concerns about trade friction.
Wow, quick, let's send this quote to all US Toyota dealers.
NAGOYA — A Toyota official told reporters that the company will explain the price hikes as a result of rises in material costs, because "it is difficult to say to dealers that the hikes are to help U.S. automakers." Japanese automakers have grabbed about a 30% share of the U.S. auto market this year, stirring concerns about trade friction.
Wow, quick, let's send this quote to all US Toyota dealers.
06-10-2005, 04:35 PM
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Raising prices has many outcomes.
1)Could help US automakers- I see very little of this option happening.
2)Could raise Toyota profits- this could happen.
3)Could raise Toyota quality even further above other automakers quality- this could happen(GM was going to spend an average of ~$200 more on vehicles from 10k-55k, compared to this Toyota average price hike of ~$500 more on vehicles from 10k-55k which could be put into material quality/engines/features/etc.
1)Could help US automakers- I see very little of this option happening.
2)Could raise Toyota profits- this could happen.
3)Could raise Toyota quality even further above other automakers quality- this could happen(GM was going to spend an average of ~$200 more on vehicles from 10k-55k, compared to this Toyota average price hike of ~$500 more on vehicles from 10k-55k which could be put into material quality/engines/features/etc.
06-10-2005, 04:52 PM
#33
The sizzle in the Steak
Originally Posted by Infamous425
2-3 percent isnt enough to sway buyers toward domestics. more $$ in toyotas pocket
Toyota is putting another nail in the GM coffin.
06-11-2005, 09:37 AM
#34
I'm the Firestarter
Originally Posted by heyitsme
Raising prices has many outcomes.
1)Could help US automakers- I see very little of this option happening.
2)Could raise Toyota profits- this could happen.
3)Could raise Toyota quality even further above other automakers quality- this could happen(GM was going to spend an average of ~$200 more on vehicles from 10k-55k, compared to this Toyota average price hike of ~$500 more on vehicles from 10k-55k which could be put into material quality/engines/features/etc.
1)Could help US automakers- I see very little of this option happening.
2)Could raise Toyota profits- this could happen.
3)Could raise Toyota quality even further above other automakers quality- this could happen(GM was going to spend an average of ~$200 more on vehicles from 10k-55k, compared to this Toyota average price hike of ~$500 more on vehicles from 10k-55k which could be put into material quality/engines/features/etc.
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