Toyota is projecting three potential repricing for 2026, up from the usual two, as uncertainty builds around trade negotiations and the upcoming USMCA review.
Driving the news: Speaking at the Autoteam America Dealer/CFO/CEO Forum & Buy-Sell Summit, Andrew Gilleland, senior vice president of automotive operations at Toyota Motor North America, said Toyota tentatively expects one more pricing adjustment than normal for the year, but emphasized the bigger priority is keeping those moves disciplined.
What they’re saying: “I don’t want to put dealers in a position where…you’ve got five different cars sitting on the lot, and you’re trying to explain to a customer, ‘Well, this was built in January…[but] this was built in September…I don’t think that’s healthy… it just creates confusion.”
That thinking, Gilleland said, is rooted in Toyota’s long-standing pricing philosophy, aka being a market follower, not a market leader.
Rather than trying to get out in front of the market, he said Toyota watches pricing closely and moves in step with it.
And as counterintuitive as that may sound, he said it’s what continues to work best for the brand and helps preserve trust across the dealer network.
“You can imagine the amount of data that gets thrown off in the industry, so we know exactly how people are pricing, and we want to follow,” he said, adding, “We don't want to lead, or be out of the front of that.”
Why that matters now: Gilleland acknowledged Toyota has landed in pricing territory he hasn’t seen before in his more than 30-year career with the company, with models increasingly landing in the “premium” bucket consumers are having to navigate.
Naturally, that’s a complicated place to be at a time when affordability is already stretched.
“We’re up around $50,000… we’ve never been that high, and it keeps me up at night,” he said.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
Get insights trusted by 55,000+ car dealers. Free, fast, and built for automotive leaders.
Striking a balance: During the fireside chat, Gilleland said Toyota is currently trying to alleviate some of the tariff impact, rather than immediately passing it on to consumers.
But he was also direct about the limits of that approach.
“We’re not gonna pass that along to consumers. I don’t think it’s possible, and so it's this game of chicken. How long do we play this game and absorb the tariffs for the consumer? It's tough.”
Adding to tensions: Gilleland shared that Toyota’s North American plants are already running over 100% capacity, which obviously raises real concerns around employee burnout.
With that in mind, Gilleland said Toyota’s focus has been on working the mix, simplifying builds where possible, and prioritizing efficiency inside the plants vs forcing expansion where there isn’t room.
“I mean, if any of you have gone to a plant, walked the floor, that's a tough job, right? And I think we need to be respectful of the job they do for us.”
Digging deeper: With factories already running flat out, he went on to explain that Toyota is choosing controlled, quality-first rollouts over aggressive early volume, even if that means dealers see tighter supply out of the gate.
The upcoming RAV4 is a clear example, he said, with the focus on launching it cleanly and correctly rather than forcing volume through already stretched facilities.
Zooming out: Toyota actually posted a 7% year-over-year increase in retail sales in January, a result Gilleland said came in better than expected. But he was careful not to frame that early strength as a signal to push harder.
Instead, his comments consistently pointed back to restraint via keeping pricing measured, launches controlled, and capacity in check, even when momentum is there.
A quick word from our partner
Missed calls and broken follow-up cost real service revenue.
Impel Service AI with Voice AI removes the friction holding fixed ops back with VIN-specific outreach based on customer driving behavior, missed-call capture, and instant appointment scheduling by text, email, chat, and phone.
Advisors stay focused on the service drive. Customers get fast, personalized service every time.
See it live at NADA 2026, Booth 4331W.
