THE DOLLAR CRISIS : Toyota May Raise N. American Prices to Compensate for Yen

Toyota Motor Corp. will consider raising prices on cars sold in North America to reflect the rise in the yen, a spokesman said, citing remarks Wednesday by Toyota Vice President Iwao Isomura.

Toyota may have to consider a price increase if the yen retains its current strength, said the spokesman. The yen surged to a postwar high of 88.75 to the dollar Wednesday before retreating on signs that the Federal Reserve Board and other central banks were prepared to defend the dollar.

Toyota’s U.S. sales unit last increased prices by 0.5%, or $206, for Lexus dealers at the end of February. Toyota cars already cost about 10% more than comparable cars produced by the Big Three U.S. auto companies.

The stronger yen erodes the value of dollar-denominated sales when repatriated into yen, forcing exporters to raise prices to retain a healthy profit margin.