Toyota is analyzing price hikes in USA Y Europe in order to offset its higher costs caused in part by the microchip shortage.
And it is that, throughout the July-September quarter, the operating profits of Toyota fell 25% to 562.7 billion (US$3.87 billion), while its operating profit margin fell to 6.1% from 9.9% the previous year. Similarly, net income fell 32% to 434.2 billion yen ($3 billion) and despite revenue increasing 22% to 9.22 trillion yen ($63.8 billion), this fact is was due in large part to the favorable exchange rates.
As reported by Auto News, North America posted an operating loss of 24.9 billion yen ($172.3 million), while Europe posted an operating loss of 77.2 billion yen ($534.2 million).
Toyota will increase prices in the US and Europe
In response to this, executives at Toyota have revealed that price changes are comingthough the company is still determining exactly how much to raise.
“We are really racking our brains trying to find the appropriate price level”, said Jun Nagata, communications director of Toyota. He added: “We have started to reflect those higher prices on the vehicle as much as possible.”
Nagata expressed that the Japanese manufacturer would like keep price changes to a minimum in order to ensure that they still meet customer expectations. For example, US customers expect the Corolla be priced between $25,000 and $30,000. According to Nagata, they “would like to maintain that general image of the vehicle and the price ratio.”
The Japanese brand plans manufacture 9.2 million vehicles in the fiscal year which ends on March 31, 2023. A number that is below its original goal of 9.7 million vehicles. This reduction is mainly due to the semiconductor shortage.
Regarding the shortage, Kazunari Kumakura, general manager of Toyota’s purchasing group, stated: “We are over the worstr”. In this regard, he added that “of the up to 1,000 semiconductors used in a vehicle, there are at least some that will remain in short supply. We are talking to the suppliers one by one to identify the risks.”
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