2009 price hikes announced

Steven Landry, executive vice president for North America sales, told dealers yesterday that prices would be raised by an average of $500 for the 2009 model year, not including a shipping charge increase of $50. The increase does not affect vehicles that have already been ordered, and will hit dealers along with higher interest rates on inventory loans from Chrysler Financial.

GM announced that 2009 models would be $790 higher, on average, while Ford raised prices by an average of $712. The price hikes are, however, accompanied by higher incentives, currently the highest (on average) of the Detroit area automakers.