Toyota Opinion of Dealers charging a Premium?

[Tempus]

I put this up in news, but I had never seen the information at the end of the article.

I wonder if reporting gouging dealers might not do some good after all?

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http://money.excite.com/jsp/nw/nwdt_rt.jsp...9&date=20040719

Toyota Is Expected to Boost Prius Output to Meet Demand

Monday July 19, 6:42 PM EDT

DETROIT -- Toyota Motor Corp. ™ is expected to announce soon it will significantly boost output of its Prius sedan to meet surging demand in the U.S. and elsewhere for the gasoline-electric hybrid.

Toyota executives familiar with the impending move said that supply of the red-hot Prius for the U.S. market, which is pegged at around 47,000 vehicles a year, might even double eventually as a result of the anticipated expansion.

The executives said the Japanese auto maker most likely would expand Prius output by producing it at an additional location in Japan. All Prius cars now come from the company's Tsutsumi plant in Toyota City, where it is headquartered. Tsutsumi produces the hybrid at a pace of between 120,000 and 130,000 a year, along with seven other gasoline-engine models including the Camry and the Japan-market Wish car.

It wasn't immediately clear exactly how big the expected capacity expansion would be. But a senior executive, who spoke on condition of anonymity, said Toyota would significantly expand Prius capacity in a "step-ladder" manner over time.

Another company official said Toyota needs to almost double its Prius supply in order to meet strong demand for the car in the U.S., where customers are lining up to snap up the Prius, sometimes paying a premium up to $6,000 for it.

The official, who also spoke on condition of anonymity, said the planned expansion would be aimed primarily at easing shortages of the hybrid sedan in the U.S. Toyota has said some customers are waiting for as long as six to seven months for the Prius. Certain Toyota dealers have stopped taking orders for the car for the rest of the 2004 model year.

Toyota executives said the company is scrambling to expand Prius output because they are concerned the long wait for the car in the American market is creating anger among consumers flocking to Toyota dealers for the car.

Toyota is "concerned ... that customers are waiting almost too long," one senior executive said in an e-mail message. Demand for the Prius "has been beyond our expectations."

They are also concerned about some questionable moves by Toyota's American dealers taking advantage of the Prius' popularity. The executives said some dealers are known to have charged a big premium for the car.

While Toyota found only a handful of such cases, "what's happening is that those who have been able to buy Prius cars are reselling them at a big premium on a personal basis, usually through a Web site," one executive said. "I also hear that very low mileage used Prius cars are being auctioned and are bought by dealers above new car sticker price and sold accordingly."

The executives said Toyota has a specific policy against its dealers charging a premium for any new car. If a dealer is found to have charged a premium, Toyota will penalize it by lowering the monthly allotment of vehicles it receives from Toyota, they said.

"We have to improve the situation quickly," one executive said.

-By Norihiko Shirouzu, The Wall Street Journal; 313-963-7810

Dow Jones Newswires
07-19-04 1842ET

© 2004 Dow Jones & Company, Inc. All Rights Reserved.

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Whaaa? Only a handful of such cases? They must not have been looking very hard.

[AlphaTeam]

<snip>
The executives said the Japanese auto maker most likely would expand Prius output by producing it at an additional location in Japan. All Prius cars now come from the company's Tsutsumi plant in Toyota City, where it is headquartered. Tsutsumi produces the hybrid at a pace of between 120,000 and 130,000 a year, along with seven other gasoline-engine models including the Camry and the Japan-market Wish car.
<snip>

This means its not made by a union shop...I didn't know that.
Now I REALLY want one.

Alpha

[peart75]

so where is a place that toyota has set up that we can report dealers that take advantage of toyota's customer base?

-drew

[GEB]

If they wanted to know! Just call any dealer in the Los Angeles Area!!!!! At least 5k over invoice and screwing any preordered car!!!!!!!
Anyone have that number? I would love to start reporting all the dealers.

[Tempus]

I bet the majority of dealers are getting around it on a 'technicality'.

If they charge you $3,000 for a bottle of scotchgard and a wax job, have they really marked it up? Or just sold you an optional package.

Seriously though, this is kind of depressing. We all know dealers who are just doing shameless straight markups.

[daniel]

This means its not made by a union shop...I didn't know that.
Now I REALLY want one.

Alpha

How do you figure, from the above, that it's non-union?

[kenmce]

Alpha Wrote:

This means its not made by a union shop...I didn't know that.
Now I REALLY want one.


Tempus wrote:

How do you figure, from the above, that it's non-union?

(KM) He's figuring that there are no unions in Japan, therefore its a non-union product. I figure that if there are no unions there, it's because japanese corporate culture treats workers as valuable assets. American corporate culture has shifted over towards viewing personnel as expenses needing to be trimmed.

[Tempus]

I didn't ask the question - daniel over-quoted

[Smooth Operator]

Originally posted by AlphaTeam

This means its not made by a union shop...I didn't know that.
Now I REALLY want one.

How do you figure the Prius is made by non-union labour?

The Japanese auto industry is highly unionized. In fact, I have not found a single automobile that is made in Japan that is built with non-union labour.

[AlphaTeam]

The Japanese auto industry is highly unionized. In fact, I have not found a single automobile that is made in Japan that is built with non-union labour.

I'm sorry I ment to say "DOES this mean....?"

So if it is oh well I still can't wait to get mine. At least its a Japanese union.

Alpha