This piece of news has been a long time coming, and it’s just a matter of time before someone breaks the silence. In light of the weakening Ringgit, UMW Toyota has announced that car prices under the Toyota and Lexus brands will rise between 4 to 16 percent (depending on model and make), and is effective January 2016.
It was revealed in their press statement that despite the Ringgit’s continual depreciation against the Greenback, the company has implemented strategic plans to absorb additional operating costs for the past few months and will continue to do so until the year ends.
UMW Toyota President, Datuk Ismet Suki said “Since the beginning of 2015, the Ringgit’s fluctuation has impacted our business as some of our parts and components are imported, resulting in an increase in overall production cost. We have implemented cost-efficiency measures and reviewed our operations across the supply chain to mitigate the weaker Ringgit.”
Datuk Ismet also stressed that the company has done their utmost in keeping the price increase at a minimal, and added that the unfortunate move will not even recover 100 percent from the impact that they have been absorbing. He also said if the Ringgit continues to weaken, the pricing structure will eventually be revised once again.
Tough times await, and we can most certainly expect all other brands to announce similar statements in the coming weeks.