JAPAN: Toyota chairman again says likely to raise US prices to aid automakers there

By just-auto.com editorial team | 9 June 2005

Toyota Motor Corp. chairman Hiroshi Okuda said again on Wednesday that the automaker is likely to raise its vehicle prices in the United States to support struggling US carmakers, according to Kyodo News.

''If the symbolic industry of the United States collapses,'' it may adversely affect Japan-US relations by stirring up national sentiment there, Okuda reportedly said at a press conference in his capacity as chairman of the Japan Business Federation, the nation's most powerful business lobby known as Nippon Keidanren.

Okuda said Toyota may raise US prices on the occasion of introducing new versions of current models.

Kyodo News noted that, earlier this year, Okuda said the biggest Japanese automaker may as well raise its vehicle prices in the US market so as to make it easier for American automakers to follow suit to beef up their earnings.

Okuda reiterated his view following General Motors Corp.'s announcement on Tuesday that it will carry out a workforce cut of at least 25,000 to reduce costs.

Honda Motor Co. has ruled out price hikes to help ailing US automakers, saying such increases could violate the US antimonopoly law as a price manipulation.

Okuda, however, said automakers can adjust prices when they introduce new model versions, according to the Kyodo News report.

Sectors: Vehicle manufacturers

Companies: Toyota, General Motors, Honda