Toyota raising US prices this month

Starting in the middle of May, Toyota will raise the price on some models, including the 2008 Yaris sedan by US$200, or 1.6 percent, to US$12,425. The 2009 Camry, with a gasoline engine, will go up US$200, or 0.9 percent, to US$18,920, the automaker's U.S. unit said in a statement.

The hybrid Camry, introduced as a 2007 model in late 2006, will cost US$300 more, or 1.1 percent, at US$25,650, according to a May 2 release.

Like other Japanese automakers, Toyota is enjoying sales growth while American automakers are struggling. Soaring gas prices have been a boost for the small cars the Japanese are reputed for.

General Motors Corp., Ford Motor Co. and Chrysler LLC saw double-digit U.S. sales declines last month, compared to last April. Toyota's U.S. April sales edged up 3 percent on year.

Toyota is also raising the U.S. prices of some Lexus luxury models. Among others, the Lexus IS entry sport sedans will rise in price 0.9 percent, or US$300, overall so the IS 350 will cost US$36,305. The 2008 Lexus IS F high-performance sports sedan won't change its pricing, it said.

Toyota faces a challenge in maintaining profits partly because of a relatively weak dollar. A strong yen erodes the value of overseas earnings of Japanese exporters. Worries are also rising about how a U.S. economic slowdown may hurt sales.