DETROIT -- Chrysler LLC told dealers Friday, June 13, that it will raise prices 2 percent for most remaining 2008 models. The increase will carry over to the 2009 model year.
The price rise, which will be reflected in invoices starting June 16, was announced in a Webcast to dealers by Jim Press, Chrysler co-president, and Steven Landry, executive vice president of North America sales.
The executives said increasing commodity prices, including steel, pushed the company to raise prices.
Chrysler spokesman Stuart Schorr said: "The average 2 percent increase brings total model year price increases in line with key competitors. It does not affect vehicles already in dealer inventory. Incentives would not be changed."
The increase will affect the remaining 2008 vehicles Chrysler will make during its summer buildout. Press told dealers at the end of May Chrysler would build 127,000 units from July to mid-August.
Schorr said at the beginning of this model year Chrysler put in an average increase of $1,200 in 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."
Automotive News has reported that steel prices for automakers have risen $500 a vehicle since January.