Toyota Canada - Significantly Refreshed Vehicles with Lower Pricing

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Pricing drops are not for your health so something bad is probably going on within the halls of the big T in Canada?

Wayne Gerdes - CleanMPG - Oct. 23, 2010

For 2011, the Toyota Highlander Hybrid features a 10% improvement in fuel economy thanks in part to the incorporation of Toyota’s Exhaust Heat Recovery and Exhaust Gas Recirculation systems for improved cold weather performance.

Toyota Canada announced it will offer Canadians more than a dozen new or significantly refreshed Toyota and Lexus models in the coming year. The first of these vehicles to be released include the 2011 Toyota Highlander and Highlander Hybrid and the refreshed 2011 Lexus IS series.

The 2011 Toyota Highlander and Highlander Hybrid feature updated styling and performance upgrades and new competitive pricing. The 2011 Highlander’s MSRP starts at $31,500, its lowest ever and a $1,750 reduction from 2010 models. What’s more, the vehicle now comes equipped with more standard features.

Toyota Canada also announced a Touring Extra Value Package for 2011 RAV4. This adds a power moonroof, unique wheels, an upgraded stereo with steering wheel-mounted audio controls, XM Satellite Radio capability and six-disc CD changer, premium cloth seats, and more. These options are valued by Toyota at almost $3,000 but priced at only $1765, delivering value to RAV4 drivers.

Please take that package with a grain of salt given OEM’s margins on options and packages are more along the lines of 75%.

Lexus of Canada is also bringing new products and pricing to market for the 2011 model year. All IS series sedans have been refreshed for the 2011 model year with new styling, additional features and a reduced MSRP by an overall 6.5%. The recently launched Lexus IS 350 AWD luxury sport sedan, new for the 2011 model year and starting at an MSRP of just $44,950, joins six other models in the IS family to offer Canadian drivers the broadest choice in the driving excitement of a luxury sport sedan.

Why are Canadian retail prices so high to begin with? Taxes do not start until the car is driven off the lot but there must be some extremely onerous corporate tax structure up there? Cars made in Canada and shipped to the US cost far less.

In any case, when a manufacturer begins lowering prices, heads are beginning to roll as that is not what they are in business for.