Weaker yen vs dollar responsible for Lexus higher prices (of japanese made models)?
#1
Lexus Fanatic
Thread Starter
iTrader: (20)
Weaker yen vs dollar responsible for Lexus higher prices (of japanese made models)?
Notice around 2012 it’s 70 yen or so to dollar and now it’s about 110... that’s weakening by about 50%!
#3
Lexus Fanatic
I definitely see an decent increase in the price of Toyota/Lexus parts. They were already expensive to begin with, but now they are Porsche expensive. I always use the Lexus OE wear sensor as an example, $137 list. On a 2018 BMW 750i x drive, $36.83 list. Yeah, German cars are soooooo expensive to maintain lol
fact checkers: BMW pn 34356890788, Lexus 47770-50050, original equipment aka OE, not OEM, not aftermarket, what came from the factory
fact checkers: BMW pn 34356890788, Lexus 47770-50050, original equipment aka OE, not OEM, not aftermarket, what came from the factory
#4
Lexus Champion
You are correct... unless Toyota / Lexus pays its suppliers in some other expensive, non-Yen currency (like the Euro). But I highly doubt this.
Or it could be because raw materials (from offshore) are simply getting more expensive, which is a possibility.
Or it could be because raw materials (from offshore) are simply getting more expensive, which is a possibility.
#5
Lexus Champion
On my GS350s, the price actually went down.
My 2015 GS350 was $60,290 (MSRP).
My 2019 GS350, same trim and drivetrain configuration, was $60,665 (MSRP), but has several more features and options than my 15 had, like triple LED headlights, HUD, the safety suite, and the power trunk.
My 2015 GS350 was $60,290 (MSRP).
My 2019 GS350, same trim and drivetrain configuration, was $60,665 (MSRP), but has several more features and options than my 15 had, like triple LED headlights, HUD, the safety suite, and the power trunk.
#7
Lexus Fanatic
Thread Starter
iTrader: (20)
trying to wrap my head around this...
if the yen is weaker then the same u.s. dollar price (sale) for a car yields more yen for the japanese maker. but, japan, having almost no natural resources, also has to pay more yen to import raw materials like iron ore for the steel, and petroleum for plastics, etc., thus raising the number of yen to make something... so perhaps it’s not so simple?
i do know from my travels to europe that the weakening currencies there relative to the dollar has made travel their more enjoyable as the prices aren’t so high in u.s. dollars.
if the yen is weaker then the same u.s. dollar price (sale) for a car yields more yen for the japanese maker. but, japan, having almost no natural resources, also has to pay more yen to import raw materials like iron ore for the steel, and petroleum for plastics, etc., thus raising the number of yen to make something... so perhaps it’s not so simple?
i do know from my travels to europe that the weakening currencies there relative to the dollar has made travel their more enjoyable as the prices aren’t so high in u.s. dollars.
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#8
Lexus Fanatic
trying to wrap my head around this...
if the yen is weaker then the same u.s. dollar price (sale) for a car yields more yen for the japanese maker. but, japan, having almost no natural resources, also has to pay more yen to import raw materials like iron ore for the steel, and petroleum for plastics, etc., thus raising the number of yen to make something... so perhaps it’s not so simple?
i do know from my travels to europe that the weakening currencies there relative to the dollar has made travel their more enjoyable as the prices aren’t so high in u.s. dollars.
if the yen is weaker then the same u.s. dollar price (sale) for a car yields more yen for the japanese maker. but, japan, having almost no natural resources, also has to pay more yen to import raw materials like iron ore for the steel, and petroleum for plastics, etc., thus raising the number of yen to make something... so perhaps it’s not so simple?
i do know from my travels to europe that the weakening currencies there relative to the dollar has made travel their more enjoyable as the prices aren’t so high in u.s. dollars.
#9
Lexus Fanatic
trying to wrap my head around this...
if the yen is weaker then the same u.s. dollar price (sale) for a car yields more yen for the japanese maker. but, japan, having almost no natural resources, also has to pay more yen to import raw materials like iron ore for the steel, and petroleum for plastics, etc., thus raising the number of yen to make something... so perhaps it’s not so simple?
i do know from my travels to europe that the weakening currencies there relative to the dollar has made travel their more enjoyable as the prices aren’t so high in u.s. dollars.
if the yen is weaker then the same u.s. dollar price (sale) for a car yields more yen for the japanese maker. but, japan, having almost no natural resources, also has to pay more yen to import raw materials like iron ore for the steel, and petroleum for plastics, etc., thus raising the number of yen to make something... so perhaps it’s not so simple?
i do know from my travels to europe that the weakening currencies there relative to the dollar has made travel their more enjoyable as the prices aren’t so high in u.s. dollars.
Last edited by Toys4RJill; 04-11-19 at 01:55 PM.
#10
Lexus Champion
trying to wrap my head around this...
if the yen is weaker then the same u.s. dollar price (sale) for a car yields more yen for the japanese maker. but, japan, having almost no natural resources, also has to pay more yen to import raw materials like iron ore for the steel, and petroleum for plastics, etc., thus raising the number of yen to make something... so perhaps it’s not so simple?
i do know from my travels to europe that the weakening currencies there relative to the dollar has made travel their more enjoyable as the prices aren’t so high in u.s. dollars.
if the yen is weaker then the same u.s. dollar price (sale) for a car yields more yen for the japanese maker. but, japan, having almost no natural resources, also has to pay more yen to import raw materials like iron ore for the steel, and petroleum for plastics, etc., thus raising the number of yen to make something... so perhaps it’s not so simple?
i do know from my travels to europe that the weakening currencies there relative to the dollar has made travel their more enjoyable as the prices aren’t so high in u.s. dollars.
Only if the cost of imports into resource-poor Japan increase so much (and continue to remain high) that suppliers cannot afford to absorb the increases, despite fluctuations in the worth of the Yen, will the increased costs be passed on to the automaker.
So, if the value of the Yen drops and continues to be (very) low over an extended period of time, or the prices of imports increase due to factors beyond the control of the Japanese, will automaking costs rise.
Low worth of a currency is good for exports but bad for imports.
#11
trying to wrap my head around this...
if the yen is weaker then the same u.s. dollar price (sale) for a car yields more yen for the japanese maker. but, japan, having almost no natural resources, also has to pay more yen to import raw materials like iron ore for the steel, and petroleum for plastics, etc., thus raising the number of yen to make something... so perhaps it’s not so simple?
i do know from my travels to europe that the weakening currencies there relative to the dollar has made travel their more enjoyable as the prices aren’t so high in u.s. dollars.
if the yen is weaker then the same u.s. dollar price (sale) for a car yields more yen for the japanese maker. but, japan, having almost no natural resources, also has to pay more yen to import raw materials like iron ore for the steel, and petroleum for plastics, etc., thus raising the number of yen to make something... so perhaps it’s not so simple?
i do know from my travels to europe that the weakening currencies there relative to the dollar has made travel their more enjoyable as the prices aren’t so high in u.s. dollars.
#13
There are also forecasts etc, that go into the planning and pricing of vehicles, especially those that are produced in Japan. Margins will get squeezed or lifted a bit as the currency floats along. They try not to have direct impacts to the pricing, as it gets difficult to chase that kind of volatility. And then each model's individual sales performance relative to supply and demand also impacts its pricing and abilities there. So yes, if there are sustained shifts in the exchange rate, it can potentially impact pricing / contenting. But it gets weighted against the overall sales plan of the car.
#15
Lexus Test Driver
A company as large as Toyota with exposure to many currencies definitely has a comprehensive hedging strategy.
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