Ford to Raise Prices on 1986 Model Cars an Average of 2.9%

Ford Motor said Friday that it will raise prices of its 1986 model cars an average of 2.9% over the 1985s.

The increase is in line with a 3% price hike that General Motors announced two weeks ago on most of its 1986 models, but it is higher than the increases planned by import leaders Toyota and Nissan on their new models.

Although Chrysler has yet to formally announce its 1986 prices, officials at the No. 3 auto maker said earlier that its price increases will average between 2% and 3%.

The gap between domestic and import prices in an increasingly competitive market prompted industry analysts to observe that the U.S. auto makers may be using the increases to offset the cost of future incentive programs.

“They (the domestic auto makers) raise prices and then, if the market slows, they can offer rebates or incentives,” said Tom O’Grady, president of Integrated Automotive Resources, an industry forecasting firm.

In an effort to meet corporate fuel-economy regulations and remain competitive in the small-car market, Ford said it will raise prices on its smallest models by just 2% to 3%, while prices of its better-selling big cars will go up 4% to 5%.