Toyota is considering raising prices...

gsaldivar

Diamond Member
Apr 30, 2001
8,691
1
81
Toyota still considering U.S. price hikes

OSAKA (AP) ? The chairman of Toyota Motor on Wednesday repeated his statement that the automaker is likely to raise its vehicle prices in the United States to support struggling U.S. carmakers, Kyodo News reported.

If the U.S. auto industry collapses, it may adversely affect Japan-U.S. relations by stirring up national sentiment, Hiroshi Okuda said at a press conference. Okuda was speaking as chairman of the Japan Business Federation, the nation's most powerful business lobby known as Nippon Keidanren.

Two weeks ago, Okuda said the biggest Japanese automaker may raise its prices in the U.S. market to make it easier for American automakers to beef up their earnings.

Okuda reiterated his view following General Motors' announcement Tuesday that it will cut 25,000 jobs to reduce costs.

Honda Motor has ruled out price hikes to help ailing U.S. automakers, saying such increases could be considered price manipulation under U.S. antitrust law.

Okuda, however, said automakers can raise prices when they introduce new versions.

http://www.usatoday.com/money/autos/2005-06-08-toyota-prices_x.htm

"We need to give some time for American companies to take a breath," Okuda was quoted as saying by the Nihon Keizai Shimbun, Japan's biggest business daily.

"I'm concerned about the current situation surrounding GM. Although a trade conflict, like ones (that) happened in the past, may be avoided, there may be some impact (on Japan's car industry) because the car industry is symbolic in the U.S. economy,"
Okuda was quoted as saying by the Japanese daily Asahi Shimbun...

Okuda's comments appeared to be an attempt to stave off any possible backlash. His remarks also suggests that he sees the American automakers as needing help to compete with Japan's car companies.

http://www.theautochannel.com/news/2005/04/26/049198.html

Wow... you have to respect for Mr. Okuda saying this publicly. I can't recall the last time I heard an American company making a similar statement in support of a foreign industry. :thumbsup::)
 

rickn

Diamond Member
Oct 15, 1999
7,064
0
0
how rediculous. I could care less if tomorrow GM fell off the face of the planet. good thing for me I don't buy Toyota
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
Toyota plants are already at 107% capacity, he has to raise prices or suffer shortages.
The increased profits will gain him more investment and make his company even more attractive.
Toyota already can demand an $6000 greater average price per vehicle over GM.

This just makes him look good, and rub it in ;)
 

gsaldivar

Diamond Member
Apr 30, 2001
8,691
1
81
Originally posted by: Stunt
Toyota plants are already at 108% capacity, he has to raise prices or suffer shortages.
The increased profits will gain him more investment and make his company even more attractive.
Toyota already can demand an $8000 greater average price per vehicle over GM.

This just makes him look good, and rub it in ;)

I didn't know that. :) Where did you find out about Toyota's plant capacity?
 

robertcloud

Banned
Oct 23, 2004
218
0
0
So Toyota can comfortably raise their prices and still compete with American makers even when considering the steep import taxes?
 

gsaldivar

Diamond Member
Apr 30, 2001
8,691
1
81
Originally posted by: robertcloud
So Toyota can comfortably raise their prices and still compete with American makers even when considering the steep import taxes?

Oh, absolutely. :thumbsup::D
 

Engineer

Elite Member
Oct 9, 1999
39,230
701
126
Originally posted by: Stunt
posted this recently
Nobody seemed to care :p

make that $6000 per vehicle and 107% capacity.

GM is at 85%.

I care (work in automotive industry). I sent it to myself and my boss at work. Interesting stuff.

Oh, and Ford/GM plan up to 300,000 fewer vehicles in the 3rd quarter than previously planned! :Q :(

OUCH!
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
You work in the Automotive industry?...would you be interested in a Mechanical engineering grad?
*Shameless Employment Query* :D
 

nergee

Senior member
Jan 25, 2000
843
0
0
No company wants to be at 100% capacity...I would say GM at 85% really isn't too bad.........you need a little
cushion there.................
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
Originally posted by: nergee
No company wants to be at 100% capacity...I would say GM at 85% really isn't too bad.........you need a little
cushion there.................
I bet GM would beg for 100% capacity.
By cushion you mean extra capacity that will never be used because of declining sales? :laugh:

Also take note that 85% may seem like ahigh percentage, when you are talking about the size of GM, this is whole plants, entrie communities shutting down.

The most efficient plants remain at max capacity or more.
 

gsaldivar

Diamond Member
Apr 30, 2001
8,691
1
81
Originally posted by: nergee
No company wants to be at 100% capacity...I would say GM at 85% really isn't too bad.........you need a little
cushion there.................


True, but if your products are in high demand, you don't want any capacity to go unused - even if that means running your plants at overcapacity... thus Toyota's 108%.

GM's problem isn't making cars fast enough, it's getting rid of them once they're made. :beer::)
 

nergee

Senior member
Jan 25, 2000
843
0
0
The company I work for builds to order and we like to be 2 days ahead on deliveries. We are around 90% capacity. You need
to have the ability to respond to customer demand and the 10% cushion we have is a nice safety net...................
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
10% of a small company, makes sense. 15% of a massive company is huge! (don't even want to comprehend what GM's potential is)

If you go to the link, you'll note that GM's 30 domestic plants range in capacity between 139% and 8%.
Toyota's 6 plants range between 126% and 96%.

All manufacturers have all their plants at over 25% capacity except GM.
 

BarneyFife

Diamond Member
Aug 12, 2001
3,875
0
76
Originally posted by: rickn
how rediculous. I could care less if tomorrow GM fell off the face of the planet. good thing for me I don't buy Toyota


You better care. The US economy would be destroyed if GM fell of the face of the earth.
 

Stunt

Diamond Member
Jul 17, 2002
9,717
2
0
Originally posted by: BarneyFife
Originally posted by: rickn
how rediculous. I could care less if tomorrow GM fell off the face of the planet. good thing for me I don't buy Toyota


You better care. The US economy would be destroyed if GM fell of the face of the earth.
No, not even close.
 

gsaldivar

Diamond Member
Apr 30, 2001
8,691
1
81
Originally posted by: BarneyFife
Originally posted by: rickn
how rediculous. I could care less if tomorrow GM fell off the face of the planet. good thing for me I don't buy Toyota

You better care. The US economy would be destroyed if GM fell of the face of the earth.

Nah, a whole bunch of union bosses would lose their jobs though. :thumbsup::D
 

rahvin

Elite Member
Oct 10, 1999
8,475
1
0
Originally posted by: gsaldivar
Originally posted by: BarneyFife
Originally posted by: rickn
how rediculous. I could care less if tomorrow GM fell off the face of the planet. good thing for me I don't buy Toyota

You better care. The US economy would be destroyed if GM fell of the face of the earth.

Nah, a whole bunch of union bosses would lose their jobs though. :thumbsup::D

The US economy would suffer and incredibly large set back if GM did die. The total employement with all supplies is probably over 2 million in addition to the millions of pensioners that would be turned over to the government. Yes the loss of GM would be a catastrophe.

Toyota is an incredibly smart company, there would be a political backlash against foriegn car companies if GM did go under.
 

gsaldivar

Diamond Member
Apr 30, 2001
8,691
1
81
Originally posted by: rahvin
The US economy would suffer and incredibly large set back if GM did die. Yes the loss of GM would be a catastrophe.

Yes, of course our economy would suffer significantly. :) Sorry, I was being sarcastic earlier. :beer::D