Chrysler raises prices by 2 percent on 2008 models

Chrysler has told its dealers that it will raise prices by 2 percent for most of the remaining 2008 models. The price increase, which will start today, will be carried over to the 2009 models. According to executives, the price increase comes from the rise in prices for commodities such as steel.

“The average 2 percent increase brings total model year price increases in line with key competitors,” said Chrysler spokesman Stuart Schorr. “It does not affect vehicles already in dealer inventory. Incentives would not be changed.”

Schorr said that at the beginning of the 2008 model year, Chrysler put an average increase of $1,200 worth of content per vehicle without raising prices.

“All manufacturers including us have taken small incremental price increases after the launch of the model year,” he added. “The cumulative impact is that with our increase we are bringing the total model year increase in line with our key competitors.”


Source: Automotive News (Subscription Required)