Report Says Toyota May Raise U.S. Auto Prices to Support Struggling U.S. Carmakers

OSAKA June 8, 2005; The AP reported that Kyodo News said the chairman of Toyota Motor Corp. Wednesday repeated his statement that the auto maker is likely to raise its vehicle prices in the United States to support struggling U.S. carmakers.

If the U.S. auto industry collapses, it may adversely affect Japan-U.S. relations by stirring up national sentiment there, Hiroshi Okuda said at a press conference. Okuda was speaking as chairman of the Japan Business Federation, the nation's most powerful business lobby known as Nippon Keidanren.

Two weeks ago, Okuda said the biggest Japanese auto maker may raise its prices in the U.S. market to make it easier for American auto makers to beef up their earnings.

Okuda reiterated his view following General Motors Corp.'s announcement Tuesday that it will cut 25,000 jobs to reduce costs.

Honda Motor Co. has ruled out price hikes to help ailing U.S. auto makers, saying such increases could be considered price manipulation under U.S. anti-trust law.

Okuda, however, said auto makers can raise prices when they introduce new versions.