Toyota Looking at Price Hikes to Fend Off Inflation and Rising Costs

Chris Teague
by Chris Teague
toyota looking at price hikes to fend off inflation and rising costs

Toyota may be one of the largest automakers in the world, but it’s not immune to rising costs and rampant inflation. The Japanese giant is seeing higher costs and shrinking profits and now says that it needs to take action to stem the tide, including raising prices on its vehicles.


On a recent earnings call, executives noted the need to adjust prices to offset increases in raw materials and other components. Toyota Chief Communications Officer Jun Nagata said that some prices have already begun changing.


Toyota buyers in the U.S. will feel the pinch, but they’re not alone. The automaker will also raise prices in Europe, looking to cover its more than $2 billion climb in costs between July and September 2022. As Automotive News noted, the company’s prices have already increased in response to inflation, but more drastic action is needed.


Though it needs to cover its costs, Toyota can’t jack prices up too hard, or it’ll risk losing customers. Buyers want a cheap Corolla and expect to pay a little more than thirty grand for a decent Camry, so there’s no way Toyota can throw out tradition and raise prices with reckless abandon.


Toyota’s earnings are down, and costs are rising at a time when it’s also struggling to produce enough vehicles. During the call, the automaker stated a new goal of 9.2 million cars, which is half a million short of the plan it set earlier this year. The ongoing microchip shortage, war, and a load of other global issues have made it hard to keep up. 


[Image: Shutterstock]

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  • Kcflyer Kcflyer on Nov 03, 2022

    Nope, no inflation. Joe says so. Gas is down over a buck fifty since he took office. Just ask him. I wish I could get my propane wholesaler to listen to him. Those guys are charging 60 percent more for propane to heat my home this year. Clearly they are gouging me since the inflation reduction act is a thing. I don't know why it's a thing, because why do you have to pass an inflation reduction act if there is no inflation? Hmm.

    • See 2 previous
    • Kcflyer Kcflyer on Nov 04, 2022

      VoGhost, your lack of understanding is outmatched only by your partisan zeal. You see child, propane is used in furnaces all around the country and the world to keep people from freezing to death. You should also understand the cold kills a lot more people every year than heat. So this latest warming trend will save millions of lives and promote the production of food to feed those lives. Enjoy it, because where I live was once under a mile of ice and snow. Someday our descendants may have to deal with that again. So yes, I buy a lot of propane. Roughly 1000 gallons a year to run our furnace and hot water heater.


  • ToolGuy ToolGuy on Nov 03, 2022

    True, vehicle prices are going up. But higher interest rates should help with financing.

    • See 3 previous
    • Jkross22 Jkross22 on Nov 04, 2022

      BRN,


      "Unfortunately, we have no choice but to offset that with increasing interest rates and that will be painful. Delaying the increases more than we already have, will just make it even more painful later. "


      Prevailing sentiment says government spending and global supply disruptions are the primary causes of the inflation we are seeing. Those explanations make sense. Low interest rates didn't cause inflation as we had those for decades prior to the current inflation problem.


      It's like if you believe gas prices went bananas because of Russia's invasion of Ukraine, despite the fact that gas prices went bananas prior to this event.



  • Lou_BC Lou_BC on Nov 03, 2022

    "inflation caused by bad policy" I take it you don't have a map of the world in your possession. Inflation is a GLOBAL problem.

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    • Kcflyer Kcflyer on Nov 04, 2022

      VoGhost, I'm trying really hard to be civil. But your Confederate Flag comment does not deserve such respect. I spent 22 years in the uniform of my country, this country. (you know, the one with the bill of rights?) The one where a republican president ended slavery and held the union together at the cost of his own life. I take jabs at my respect for its union seriously. Coincidently, I didn't meet at lot of folks with your political views whilst serving. A few, all of whom I did and do respect, but still very few.



  • Jkross22 Jkross22 on Nov 04, 2022

    Art, to your point, you could say we have a pandemic of bad public policy.

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