Toyota slashes prices

Persistent high dollar forces automaker's hand

Business Reporter

Feb 01, 2008

The company announced today it is reducing the manufacturer's suggested retail prices (MSRPs) on 16 Toyota and luxury Lexus models.

Analysts say they expect other automakers will follow Toyota's move for competitive reasons because consumers will use them in comparison shopping.

Some luxury automakers have slashed their MSRPs by several thousand dollars in recent months because of the soaring value of the Canadian dollar after consumers complained they were not getting enough bang for their buck.

However all major automakers have not lowered MSRPs during a model year because it would upset company planning and consumers who bought earlier. Furthermore, automakers were uncertain how long the dollar would retain its lofty status.

Instead, the companies responded by jacking up incentive packages by several thousand dollars on many models.

Toyota had also offered incentives but said this morning it is now converting them into clear, consistent price reductions.

The MSRP cuts at Toyota range from $750 on the Toyota Yaris subcompact to $8,100 on the luxury Lexus GX series.