tivoboy said:
Thanks for the response.
Trust me, I've seen the move (trade currencies often) but companies rarely implement radical pricing changes based on what are short term effects like YEN repatriation (after the earthquake) and currency crosses. They usually set a price yes slightly above on a annual basis, and often for a vehicle manufacturer will keep pricing steady while INCREASING offerings/built in items to enhance value. Of course with a vehicle high in demand, in can be more market based.
The value goes both ways though, as the YEN strengthens, all the steel that is purchased abroad becomes cheaper. All the shipping charges become cheaper, as they are denominated in dollars., etc.
I'll agree to a point, but this rise up seems to be more "market will bear" and demand won't fall off founded.
I'm not so sure that changes were made in response to short term effects on the yen. I'd imagine prices, profit/loss projections, equipment level decisions, how much content to put in, cost targets, etc. on the Leaf were set long ago (not sure when) and w/certain projections made on the dollar/yen exchange rate. Google for
nissan 2010 yen dollar exchange rate, for example. In the beginning of 1/2010, $1 = ~92 yen. Now that only gets you ~76 yen. It was hovering around the low 80s until recently...
As for steel, apparently, prices have recently gone up. See http://www.marketwatch.com/story/nippon-steel-to-raise-nissan-steel-prices-by-15-2011-06-27 and http://uk.reuters.com/article/2011/08/04/toyota-nippon-idUKL3E7J33TD20110804.
As for "They usually set a price yes slightly above on a annual basis, and often for a vehicle manufacturer will keep pricing steady while INCREASING offerings/built in items to enhance value...", how many made in Japan cars has the latter happened on recently? The 3rd gen Prius went thru at least 2 prices increases since it shipped in May 2009. Toyota ended up not offering the very stripped down Prius model I (One) to consumers, only fleets. Honda, on the other hand had to add some more features to the Insight since it's been a sales disaster.
The 2012 Honda Civic has been the subject of a lot of negative reviews and negative comments about its interior. I wouldn't be surprised if Honda was forced to cut costs with this generation due to the exchange rate.
Although the Volt isn't made in Japan, but from http://www.greencarreports.com/news/1061435_2012-chevy-volt-price-cut-pay-less-but-get-a-lot-less:
But the bottom line is still grim: To get the same package of features as on the base 2011 Chevrolet Volt, which cost $41,000, the buyer of a 2012 Volt model will have to pony up $43,083.
When Nissan was in trouble (before Ghosn saved them), they were decontenting cars. I think an example given is to compare interiors of Altimas from the early model years to the ones made around 1998 or 1999, when Nissan nearly went bankrupt.