Ok, since I was accused (rightfully so) of picking on just GM for this, Toyota has also used the “rising materials cost” excuse for raising prices on some models.
A Toyota spokesman said:
“Price changes were made to keep up with current economic conditions and the rising cost of major components… Materials in global markets have gone up. We have made an effort to absorb some to the cost while still protecting our price position.”
Don't get me wrong — companies are allowed to raise prices. It's their choice based on their view of the market. I'll quit beating this drum, but it fascinates me that it's socially acceptable to give the “our costs went up” reason.
We don't hear as often of price reductions because raw material costs go down (well, maybe except in the electronics industry where technology is moving fast…) Has this ever been offered as a reason to cut prices in the auto industry? Let's keep the discussion there.
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