Toyota is raising the prices of some of its models to help increase profits in the U.S. market, which is experiencing slow auto sales overall.
The increased prices will begin in the middle of May. The 2008 Toyota Yaris sedan will go up $200 to $12,425, the 2009 Camry will go up $200 to $18,920 and the hybrid Camry, introduced as a 2007 model in late 2006, will increase by $300 to $25,650. Several other Toyota models will also get price increases.
Toyota faces a challenge in maintaining profits partly because of the recent decline in the dollar, which erodes the value of overseas earnings of Japanese exporters, the AP reports. Worries are also rising about how a U.S. economic slowdown may hurt sales.
Also included in the price increases are some of the Lexus models sold in the U.S. One model set to increase in price is the IS 350 sedan, which will go up $300 to $36,305, Toyota says.
As Toyota’s prices go up later this month, the company’s biggest competitor, Honda, has no imminent plans to increase U.S. prices. The end of May could be a good time to get a great deal on a Honda, as Honda dealers will most likely take advantage of Toyota’s price increase to close the sale.