With the Yen soaring in value is Kubota going to increase prices?

bilrus61 · Aug 11, 2011

When I got my Kubota L5040 last year the Yen was about at 87 per the dollar. Now the dollar only buys 76 Yen. That is quite a drop in the dollar value. Way over 10%. Any dealers out there have a heads on up Kubota (and Deere/Yanmar) price increases? Was there that big of margin that they can just absorb difference and keep on importing and selling them at the same prices as before?

bp fick · Aug 11, 2011

There has been these 1%, 2% bumps all along the way. I wouldn't be surprised to see another 3% bump within months. They tend to bump incrementally, not huge chunks at one time.

Still, with the world wide economy in tatters, huge price increases could hurt sales and that would be harder on Kubota and the other Japanese OEMs.

Times are tough and monetary exchange issues are all part of doing international business.

jonyyuma · Aug 11, 2011

I would bet that the price is going to climb..Parts have already jumped and so has freight. Buy now, the economy needs it...If what you want is available. If it gets tighter then they won't ship as much in.

bigbull338 · Aug 11, 2011

im sure there will be some price bumps.but with this slow economy cash money will dictate the price of tractors an equipment.every1 will keep their belts tight from now own.

MessickFarmEqu · Aug 15, 2011

I'd expect it. The Yen to Dollar has been slipping for awhile, we've had several price increases because of it in prior years. That said, Kubota has some programs running that have lots of inventory headed to dealers, it would take several months for increased prices to float down to buyers.

smstonypoint · Aug 15, 2011

bp fick said:
Still, with the world wide economy in tatters, huge price increases could hurt sales and that would be harder on Kubota and the other Japanese OEMs.

Times are tough and monetary exchange issues are all part of doing international business.

I suspect, but do not know, that Kubota is like most other international companies in using currency futures/options/swaps to protect themselves from foreign exchange risks.

Steve