P.M. BRIEFING : Chrysler to Hike Price of ’90 Models 5%, Blames Half of Rise on Air Bags

Chrysler Corp. said today that tentative prices for its 1990 cars will increase an average of 5% over comparably equipped 1989 models.

Nearly half the boost is caused by the installation of driver-side air bags in all of Chrysler’s U.S.-made cars, expected to be about 1 million vehicles in the 1990 model year, spokeswoman Karen Stewart said.

She said the average air bag will cost the consumer $450, less than what Chrysler pays to buy and install them. She refused to say exactly what the auto maker is spending on the systems. The rest of Chrysler’s price increase stems from economic reasons, including higher material and labor costs, she said.

Earlier this month, General Motors Corp. announced a tentative average price increase of 3.4%, and Ford Motor Co. said its car prices could go up as much as 4.8% for the coming model year.