Q: Yen is devalued but the price is not
- Thread starter jsun_2k
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And bunker fuel prices are up, so the cost of the boat trip has gone up as well; and as usual, you can fully expect those costs to be carried forward to the end consumer.
Bunker Fuel Oil ? Fuel Price Charts, Bunker News & Shipping | Platts
Okki
Bunker Fuel Oil ? Fuel Price Charts, Bunker News & Shipping | Platts
Okki
03_4x4Runner
Senior Member
Toyota recently settled the unintended acceleration lawsuit from several years ago for around one billion dollars. http://ktla.com/2012/12/26/toyota-settles-class-action-lawsuit-for-1-1-billion/#axzz2OCnkWOt7 Who do you think is going to pay for that? Also since 4runners are imported there is a steep tax to be paid. I think it is around 20%. That is why you can buy a much better equipped Grand Cherokee for the same price as a 4runner. As long as people are lined up to buy their cars they have no reason to lower their price.
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Texakan
New member
I believe that the Toyotas we have in the USA are made in San Antonio, TX and Indiana. Someone is welcome to correct me if I'm wrong on that, though.
I'm not sure how the crashing value of the JPY will effect Toyota, but it's an interesting question to bring up. Japan is printing money like crazy (just like us!) and from reading Kyle Bass's take on their situation over the past year or so, I'm inclined to think it'll get pretty bad for them....and eventually us too....
I'm not sure how the crashing value of the JPY will effect Toyota, but it's an interesting question to bring up. Japan is printing money like crazy (just like us!) and from reading Kyle Bass's take on their situation over the past year or so, I'm inclined to think it'll get pretty bad for them....and eventually us too....
Texakan
New member
Here's a great article for anyone interested: "Detonating The Japanese Debt Time Bomb" With Kyle Bass
"Detonating The Japanese Debt Time Bomb" With Kyle Bass | Zero Hedge
Sorry to be such a Kyle Bass fanboy, but that guy is one smart mofo
"Detonating The Japanese Debt Time Bomb" With Kyle Bass | Zero Hedge
Sorry to be such a Kyle Bass fanboy, but that guy is one smart mofo
All 4Runners are manufactured at the Tahara plant in Japan. Furthermore, you can tell where a car is made based on the VIN. The first number/letter indicates country of origin. All 4Runners start with a J for Japan.
Exactly. So long as Toyota has demand for a product that is not interchangable (i.e., people want a Toyota vs. another manufacturer), Toyota will have some ability to price vehicles to maximize profit. Another way of thinking about it -- the value of the Yen has little effect on what most buyers are willing to pay. So long as I'm willing to pay what Toyota is asking, Toyota has no real incentive to lower the cost in response to the Yen.
The weaker Yen may ultimately lead Toyota to want to increase sales in the US with the (comparatively) stronger dollar. If they increase supply enough, prices will fall... albeit slowly and with a lag.
CraigRoberts
New member
Cool to see a like to Kyle Bass on the 4runner forum.
He's betting heavy against the yen. They're printing money like crazy and have a big population crisis.
He's betting heavy against the yen. They're printing money like crazy and have a big population crisis.
CraigRoberts
New member
Based on Consumer Reports, Toyota vs American made are exact opposites in terms of long-term reliability. Maybe if US could actually compete in quality we'd see Toyota coming down in price.
blizz86
New member
Theres a bunch of toyota cars and both trucks are made here in the US. The tacoma and Tundra are mostly built over in texas, bunch of camry highlander and corolla and avalon plants in indiana
Heres a link to that info
List of Toyota manufacturing facilities - Wikipedia, the free encyclopedia
4runners have always and hopefully will be made in the Tahara plant; where lexus are also made. This plant is supposed to be one of the highest prestige and most sophisticated in the world.
http://www.autonews.com/apps/pbcs.dll/article?AID=/20070709/SUB/70705024/1128#axzz2OE5w8Y4n
jsun_2k
New member
Just to play devil's advocate here, but how would you guys all feel about pay more for a 4runner (or any Japanese vehicle for that matter) if/when the Yen becomes stronger?
exactly!
homeyclaus
New member
Just to play devil's advocate here, but how would you guys all feel about pay more for a 4runner (or any Japanese vehicle for that matter) if/when the Yen becomes stronger?
Buy toyota stock, and it's all offset.
Toyota has separate manufacturing subsidiaries all over the world, and make market-specific vehicles.
Corolla and Matrix: Canada by TMMC
Tundra, some Tacomas: Texas, TMMT
Camry, a bunch of other stuff: TMM Tennessee/Kentucky or something like that
Tacoma: Mexico, TMMS, Toyota Motors Manufacturing Saltillo
Most North American motors come from either Toyota's WV or TN motor plants. TN also makes axles and a bunch of other stuff.
Then there are differently-named subsidiaries:
Aisin-Warner (transmissions, transfer cases)
Denso NA (Electonics, radiators, some other stuff)
Malarkey. These are the same people who rank the 4Runner as the worst in its class too.
The Corolla is one of the best mass market vehicles out there in terms of quality and durability, and there has not been assembly line for them in Japan in decades. Most are made in Canada of almost entirely Canadian parts (some transmissions excepted, and engines from WV), and the Corolla Verso is made in Turkey for world-wide consumption.
They even make cars in the UK, and one of their UK plants has a lower defects-per-car number than their Tahara plant. This of course caused a massive internal investigation by the Japanese...
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Just to play devil's advocate here, but how would you guys all feel about pay more for a 4runner (or any Japanese vehicle for that matter) if/when the Yen becomes stronger?
The market itself determines price, currency valuation plays a small part. Minor fluctuations might result, but if the YEN was much stronger there would be a point where they couldn't sell it for more because people would stop buying it. In a similar manner when the YEN is down, they won't drastically reduce price either because people still buy them.
jsun_2k
New member
15%, not 1%, not 5%, should not be considered as minor fluctuation.
1engineer
Moderator
It's not a minor fluctuation but cars are not commodities and the only thing that controls the vehicle's price is competition. Their value is solely based on what the consumer is willing to pay. The devaluation of the Yen only determines how much profit the company makes. They will change the price at the beginning of a new model year, and it will be adjusted not by currency cost but by competition cost. You are way out in left field on this one.
