Topic: Toyota to have 2009 Pricing at PAR?

[2latecrew]

Toyota has gone to great lenghts to explain to consumers that Toyta Canada vehicles are priced differently becuse of the "unique Canadain content".

The most recent review of the 2009 Corolla on Canada driver had this to say

There are also some Canuck-influenced touches, according to chief engineer Shinichi Yasui. For the first time, the Corolla is designed as a single global model; previously, Toyota produced a design for the Japanese market, and then adapted it for each regional market. Production from the company's plant in Cambridge, Ontario is second only to Japan, and the Canadian factory exports to all of North America. Yasui said that, thanks to input from the team at Cambridge, the Corolla's pedals are spaced to fit a size 10-1/2 winter boot (the average worn by Canadian men); the door pockets were designed to fit an ice scraper, even though the Canadians had to send one to the engineers in Japan, who'd never seen one; the storage spaces were sized to fit North American electronics, such as cell phones and PDAs, which are larger than those used in Japan; and finally, yes, the cupholders really are sized to fit a double-double from Timmy's.

So 2009 Corollas that are built and shipped to the US are specifically designed to accomadate Canadian Winter Boots and ice scrapers. Halajulia! 2009 Corollas do not need to be unique for Canada since the US gets all the same enhancments. I can only assume prices will be the same since there is no longer a huge cost in accomadatinmg the unique Canadian needs. 

[Guy]

Pricing will be at par but Canadians will have to pay $5,000 for transport and PDI....

[Baron von Raschke]

All 2009 Corollas destined for the Canadian Market will be buffed with a special fleece specifically made for Canadians.  The cost of fleecing will be reflected in the price.

[safristi]

  Buffing the Vampire slayer............

[JSCC]

I'm guessing a 1:1.20 ratio.
So whatever it costs in USA, X 1.20 for Canadian pricing.

[JSCC]

I'm guessing a 1:1.20 ratio.
So whatever it costs in USA, X 1.20 for Canadian pricing.

Seems like I was off a bit.

Corolla XRS US$18,760, Corolla XRS CAD$21,655
Ratio 1 : 1.15

Matrix XRS US$20,660, Matrix XRS CAD$25,220
Ratio 1 : 1.22

It seems the Canadian spec Matrix XRS includes the skirt package as standard equipment.
If you take $1500 off the Canadian version to off set the skirts, you get CAD$23,720
Adjusted ratio 1 : 1.15 

Camry LE US$20,175, Camry LE CAD$23,400
Ratio 1 : 1.16

[marineboy]

IMHO I think Toyota are being quite sensible here. They have waited to see where the dollar averaged out in the market. They have lowered the MSRP enough to entice buyers yet not off those that bought last year. This also gives them a cushion if the dollar starts to drop against the US greenback. If the exchange rate stays near par I can see them adjusting MSRP's again in 6  months. You will not see US pricing but i think the sweet spot would be 1.10.

[JSCC]

IMHO I think Toyota are being quite sensible here. They have waited to see where the dollar averaged out in the market. They have lowered the MSRP enough to entice buyers yet not off those that bought last year. This also gives them a cushion if the dollar starts to drop against the US greenback. If the exchange rate stays near par I can see them adjusting MSRP's again in 6  months. You will not see US pricing but i think the sweet spot would be 1.10.

If US$ rises back to 1.10, I would run out to buy right away.
I'm sure to see the prices jump back up much faster than they came down. 

[johngenx]

Matrix AWD US = $20,900

Matrix AWD Canada = $23,800

1.14 rate

Remind me of where the Toyota is made...   

[airbalancer]

Who would have a great overhead/car sold, the US or Canada.
I bet it is in Canada.
SO we have pay a high price so they can make a profit, and we all know a company making a profit is a dirty word

[johngenx]

Matrix is $23,804 with AWD and AT.

Impreza hatch is $24,290 with AWD and AT.

Whoa.

I'll reserve judgement until I see the Matrix, but the outgoing one was not nearly as substantial as the Scoob.  Better fuel economy, but buzzy, wheezy driveline (AT particulary bad) and odd ergos in the cockpit.  The Matrix AWD is really FWD with some pulling-away AWD'ness and not helpful otherwise.

When the Matrix was new I rushed out to see it, as I love the concept.  Driving it was so disappointing.  Hope the 09 is a winner...

As for overhead, that belongs to the dealer.  The dealers face higher prices than their US counterparts.  How is Toyota Canada's costs higher than Toyota USA?  Toyota USA has to import the Matrix from Canada...

[airbalancer]

 The car manufacturing are a different department then sales ( could be a different company even). Each division must make their own profit
But you still have a head offices with employees to pay, also there is national ads to run.
It would just like why fright bill is high in Canada, less car sold to divide the total cost over.

Are not the US Matrix made in Cal and Canadians in Ont?

[marineboy]

The car manufacturing are a different department then sales ( could be a different company even). Each division must make their own profit
But you still have a head offices with employees to pay, also there is national ads to run.
It would just like why fright bill is high in Canada, less car sold to divide the total cost over.

Are not the US Matrix made in Cal and Canadians in Ont?

I believe all the Matrix cars are built in Ontario and the Vibes are built in California.
You can't tell me that the Toyota distribution and marketing infrastructure is so bloated and inefficient that it costs an extra $3000 per vehicle to make a profit. GM i could believe but not Toyota.

[PJungnitsch]

It looks like manufacturers try to use one Canadian to US pricing differential for all models, regardless of where the vehicles are built (or how much they are worth).

IE, Toyota is using 1.15, Volkswagen 1.20, Honda 1.31 etc.

Sort of like how they charge the same freight for a Corolla whether it is sold just outside the Ontario plant or thousands of miles away in Newfoundland.

[johngenx]

But you still have a head offices with employees to pay, also there is national ads to run.

Toyota Canada might face a higher per unit cost thanks to distributing their overhead over a smaller number of cars, however, the days of Canada being a high-cost place to business are gone.  We have slashed corporate taxes, payroll taxes and othe health care costs for employers are a small fraction of what US business has to pay.

We have an excellent transportation system, and our N-S range is small compared to the US.

I think it's pure BS that Toyota US faces thousands less in a per unit cost.  Now, the Matrix is getting closer to reality in par pricing, but I bet Toyota hedged themselves like mad when the dollar was $1.10 and at 1.14 pricing for the Matrix, making MORE than under the old pricing and trying to look like they could give a about Canadian pricing...

[airbalancer]

But you still have a head offices with employees to pay, also there is national ads to run.

Toyota Canada might face a higher per unit cost thanks to distributing their overhead over a smaller number of cars, however, the days of Canada being a high-cost place to business are gone.  We have slashed corporate taxes, payroll taxes and othe health care costs for employers are a small fraction of what US business has to pay.

We have an excellent transportation system, and our N-S range is small compared to the US.

I think it's pure BS that Toyota US faces thousands less in a per unit cost.  Now, the Matrix is getting closer to reality in par pricing, but I bet Toyota hedged themselves like mad when the dollar was $1.10 and at 1.14 pricing for the Matrix, making MORE than under the old pricing and trying to look like they could give a about Canadian pricing...

You may be right
Would you love to see the price of a car
I once was working in an office for a Home depot type of store, thewas an invoice from a window company.
They got a 60% discount off the invoice price of the window , that way a saleperson could show a person the invoice and tell them they are not making any money on the sale