Chrysler boosts 2009 vehicle prices

Chrysler boosts 2009 vehicle prices
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Automotive News | October 2, 2008 - 3:36 pm EST

DETROIT -- Chrysler LLC is raising prices on all 2009 model vehicles by
an average of $500.

Steven Landry, executive vice president for North America sales, broke
the news to auto dealers during his monthly sales call yesterday. The
price increase does not affect 2009 model vehicles that dealers have
ordered already or those that are on dealership lots.

Chrysler also raised its shipping charge about $50 per vehicle.

The news came as Chrysler Financial raised interest rates on floorplan
loans that dealers obtain to finance their inventories of new vehicles.

The price increases come at an awkward time for Chrysler LLC dealers,
who are coping with slumping sales, tight credit and high gasoline
prices. Chrysler LLC sales dropped nearly 33 percent in September
compared with the same period a year earlier.

Chrysler’s rivals also are boosting prices. This fall, General Motors
raised its 2009 sticker prices by an average $790, or 2.7 percent. And
if a couple of price increases in April and May are included, GM’s 2009
sticker prices are $1,150 higher than a year earlier.

Ford Motor Co. has raised its 2009 sticker prices by an average $712, or
2.6 percent.

Chuck Eddy, owner of Bob and Chuck Eddy Chrysler-Dodge-Jeep in
Austintown, Ohio, and a member of the national dealer council, said
Chrysler has done a good job holding the line on prices.

“This is still way less than GM or Ford,” he said. “We’ve hardly had any
price increase. I don’t think they’ve increased it enough. So it’s about
time."