Chrysler Group is increasing retail prices on new models for a third time since December to offset profit-eating incentives, the Detroit News reported.
The newspaper said that prices are up $US115 to $120 on average on most 2002 Chrysler, Dodge and Jeep cars and trucks, another 0.5% up on March’s increase.
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Chrysler has raised prices 1.6% since December, the Detroit News added.
The newspaper said that Chrysler originally reduced 2002 model year introductory prices on comparably equipped models by an average of $199 to try and boost sales while avoiding expensive incentives and low rate finance.
But, the Detroit News said, General Motors started an incentive war with zero percent finance to boost sales following the September 11 terrorist attacks.
Chrysler spokesman Marc Henretta told the newspaper that GM and Ford had also raised 2002 showroom prices three times.
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By GlobalData“GM is pretty much driving the incentive and pricing game in the United States,” Henretta told the Detroit News yesterday. “We’re just following along.”
