ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, July 25, 1996 TAG: 9607250032
SECTION: BUSINESS PAGE: C-9 EDITION: METRO
DATELINE: DETROIT
SOURCE: Associated Press
GM AND FORD no longer announce every increase in sticker prices. Chrysler does, but may change that.
With many consumers put off by the high cost of new cars and trucks, some automakers are keeping their midyear price increases quiet.
Ford Motor Co. raised prices for its Explorer sport utility vehicle and F-150 pickup between $200 and $425 this month, without a public announcement. Only dealers were told.
Industry analysts say that was the latest example of an apparent trend.
Pricing decisions affect inflation and the course of the economy. Lately, they have become a sensitive subject in Detroit as some automakers post record quarterly profits.
Ford spokesman Jon Ochs said the No. 2 automaker announces midyear price increases only when ``a significant number'' of models are affected, rather than just one or two.
But the F-150 is the biggest-selling vehicle in the United States; the Explorer ranks third. Together, those two models accounted for about a quarter of Ford's sales volume in the first six months of this year.
No. 1 General Motors Corp. raised prices of its top-selling Chevrolet Cavalier and its structural twin, the Pontiac Sunfire, by $200 to $215 in April without public announcement. GM generally announces only across-the-board increases or those that affect a ``significant volume'' of cars and trucks, spokesman Dean Rotondo said.
In light of the recent silence at Ford and GM, No. 3 Chrysler Corp. might change its longtime practice, says spokesman Jim Crawford.
``Our policy has been to announce every price increase, be it new model year or midyear,'' Crawford said. ``Given changes we've noted in the industry, we're reviewing our policy. We view it as a competitive issue.''
The annual announcement of new model-year prices began in part as a marketing ploy to clear the inventory of old models.
``In the past, the threat of a price increase often stimulated sales,'' Keller said. ``Dealers would say, `If you wait three weeks, we'll have to sell you next year's model and that will cost you more.'''
LENGTH: Medium: 51 linesby CNB