Toyota may accept a 25 percent increase in steel price

Article by Christian A., on August 25, 2010

Talks between Toyota Motor Corp. and Nippon Steel Corp. over steel sheet prices are in the final stages, according to the Nikkei business daily. In relation to this, Toyota may accept a 25% increase for the April-September period that would add about 20,000 yen to the steel cost per vehicle.

Nikkei business daily also said that the proposed price hike would cause the cost to increase about 600 billion yen ($6.5 billion) for manufacturers, builders and other domestic industries in a six-month period.

Advanced Research Japan senior analyst Koji Endo said that the situation is difficult for both steelmakers and automakers, but this couldn't have been avoided if automakers' earnings are recovering.

He said that because of these circumstances, Toyota will "rationalize production and absorb the costs, and maybe raise retail prices."

But he clarified that this isn't easy to accomplish. He said that Toyota might attempt to raise prices in China, the Middle East and Southeast Asia where there is strong demand.

Prices may also be increased in the US, where demand is picking up. Both companies have yet to confirm this report.

The paper also revealed that the sharp increase from the previous financial year would put result to the cold-rolled steel sheet being priced at around 100,000 yen a ton; and zinc-coated steel sheet priced even higher.

Topics: toyota, price

If you liked the article, share on:

Comments

Recommended

In a game-changing move, Ford has revealed that it will soon produce its first ever all-electric CUV that will be built to be electric from the ground up, and it...
by - May 23, 2017
The wait for the Mustang’s GT-based Super Snake concept to be released is finally over. Shelby had recently collaborated with Ford Performance and Borla to come up with something that...
by - May 23, 2017
While the BMW M3 is making some noise in Abu Dhabi with its San Marino Blue outfit, Porsche on the other hand, is catching people’s attention in Dubai as the...
by - May 23, 2017
We first heard of the fifth generation SEAT Ibiza earlier this year, and last week, the company finally revealed the all-new Ibiza at the international launch in Barcelona. The new...
by - May 22, 2017
The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries