Toyota eyeing possible Japanese price hike

NAGOYA, Japan, June 28 (UPI) -- All Toyota Motor Corp. models sold in Japan may soon cost more because off rising material prices, company sources say.

The sources said the automobile company is considering increasing vehicle costs in Japan by 1 percent to 3 percent in an attempt to limit the financial impact of rising material costs, Kyodo reported Saturday.

Domestic sales during the first half of 2008 will be analyzed before making a final decision on the matter. The sources said such a decision could occur in July, the Japanese news agency reported.

If it happens, it would mark the first time since 1974 that Toyota has instituted such a wide-ranging price increase in Japan. The 1974 increase was due to an oil crisis that also hindered the Japan-based company's profit margin.

The sources told Kyodo that news of the potential price hike has Toyota dealers concerned as Toyota sales are mired in a prolonged slump.