Toyota eyes European price increases to offset higher costs, slumping profits

Toyota warns of looming price increases, saying they are needed to offset surging input costs. The big question is how much of an increase customers will be willing to bear.

Toyota Motor, slammed by higher costs, microchip shortages and slumping profits, plans to increase sticker prices for European and U.S. customers to help soften the earnings blow.

“We are really racking our brains trying to come up with the appropriate pricing level,” Chief Communications Officer Jun Nagata said at Toyota’s quarterly earnings announcement on Tuesday. “We have begun to reflect those higher prices into the vehicle as much as possible.”

Toyota struggled to absorb a worldwide cost surge exceeding $2 billion in the July-September period.