Toyota is now being forced to raise prices in Japan to pad their profits against the rising costs. Toyota’s cost cutting efforts have proven to be insufficient to meet expenditures. Toyota lost 28 percent net profit in their last quarterly report due to rising steel costs.
It is the first time since 1974 that Toyota has raised prices on existing vehicle in their domestic market. Carlos Ghosn, Nissan’s CEO, has stated that all auto makers will soon have to follow suit with the prices of raw materials doubling everywhere.
Our take? That scrapheap in your garage might be worth a lot more than it was six months ago. Consumers may feel the pinch in other areas as well.
via Business Report