Chrysler To Increase Prices 2% On 2008, 2009 Models

According to Automotive News, Chrysler is continuing their effort to be everyone's favorite privately-held whipping boy by raising prices 2% for their remaining inventory of 2008 models and into the 2009 model year.

Jim Press, Chrysler co-president, made the announcement to dealers in a webcast earlier today. He cited increasing commodity prices, including steel. In addition, 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."

What this means is that Chrysler is still eating the majority of the costs associated with rising commodity prices. Numbers we've seen tell us the automakers are spending an extra $500 per vehicle in steel costs alone. One can assume other raw materials and supplier parts are also adding to costs so somehow, we don't think 2% quite makes up for that on the majority of Chrysler's current vehicle mix. [Automotive News (sub. req.)]