Toyota Bumps Prices For 11 Models
Automotive News (sub) reports that ToMoCo is increasing prices on 11 Toyota and Lexus models by the end of the month. The hot-selling Yaris will see a $200 jump in base price, The sedan ascends to $13,085 while the hatchback's sticker rises to $12,210. The Prius' price will reverse its downward trend, adding $400 to the Moroni, for a new base MSRP of $22,160. The FJ Cruiser will see the biggest increase, adding $500, for a new base price of $23,730. All Toyota-branded vehicles will increase by comparable amounts– with a few notable exceptions (Sequoia, Tacoma, 2009 Corolla and Matrix). Lexus models will increase even more (expect to pay an extra $900 for an LS460) except for the new IS-F, which will remain unchanged. Why the price bumps during a period of weak sales? "Price changes were made to keep up with current economic conditions and the rising cost of major components," A ToMoCo spokesman demurred. "Materials in global markets have gone up. We have made an effort to absorb some to the cost while still protecting our price position." Hmm, weak sales and rising costs? Get the band back together, 'cause it's looking like good ol' stagflation all over again.
More by Edward Niedermeyer
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This has nothing to do with rising price of materials. It's all about supply and demand. Notice the vehicles that are mentiones are fairly new in the Toyota line-up, the Yaris, FT cruiser. These cars are consider by many as gas savers, so of course toyota will raise the price to make more profits. Prices of materials has been on the rise for years know. Toyota was just waiting for the right time to have enough demand for the vehicles to increase the price. Just look at the prius, when it first came out it was around 17-18k, now of because of the demand it's up to 22k for a base model....Lexus has always been more expansive, people really don't care if it's $900 more.
This is the value of a quality brand reputation. People will pay more for it. I don't think this will help Detroit. Toyota shoppers would buy Hyundai or switch to a smaller Toyota model rather than buy GM or Ford.
casper00: I don't want to refute your whole argument but toyota's FJ Cruiser is no gas saver. It's a gas pig like any other SUV on the market (maybe worse than some) ... And for whatever reason this particular one has seen the biggest price increase. It may be after all the raw material prices since this one has more steel in it than a regular car.
Toyota often adjusts the price on many of their models by a couple hundred dollars every so often. This is routine, and probably is actually related to the price of materials. I'm sure the weak dollar doesn't help-the four Toyota models listed with no price increase are built in America, so they are less affected by the weak dollar.