Dropping the base option generally means losing the car with the lowest profit margin for manufacturers. It also effectively raises the floor of ownership for buyers. According to the report, consumers’ expectations of pricing is one of the factors Toyota executives are using to gauge increases.
The warning of impending price increases came during a quarterly earnings announcement on November 1. According to the report, the company needs to make adjustments to offset regional operating losses for the North American arm of the company. Automotive News Europe notes that Toyota is also considering price increases are also in Europe, and for similar reasons.