Chrysler LHs to Be Pricier Than Thought : Autos: The range of $16,000 to $22,000 is about the same as the Japanese imports the line had hoped to challenge.
Chrysler Corp. said Monday that the new LH sedans on which it has pinned its hopes will retail for $16,000 to $22,000, higher than analysts had expected.
The lowest-priced of the three mid-size cars, the Dodge Intrepid, will carry a base sticker price of $15,930, while the top of the line Chrysler Concorde will cost about $22,000 fully loaded.
Analysts said the pricing will put the LH in the same bracket as the cars it is targeting, such as Toyota Motor Corp.’s Camry and Honda Motor Co.’s Accord.
“I think these prices will slow down the initial momentum of the LH because they’ll be asking people to pay comparable prices to Japanese cars without people having the same kind of guarantee and comfort in terms of quality and product,” said Susan Jacobs, analyst with Jacobs Automotive Inc.
The Concorde will carry a base sticker price of $18,341, while the mid-priced Eagle Vision will have a base price of $17,387.
The Intrepid, which is expected to be the biggest seller, is aimed at affluent families. It will go head to head with Ford Motor Co.’s Taurus and General Motors Corp.’s Pontiac Bonneville as well as the Camry and Accord.
The Eagle Vision, which will include a high-performance model that will sell for up to $22,500, will be geared toward yuppies who typically would drive a Lexus ES300, Nissan Maxima, Toyota Camry or Bonneville SSE.
“The Vision . . . is going to be our import-fighter,” said Theodor Cunningham, Chrysler executive vice president.
Cunningham said the 1993 Vision is tentatively priced as much as $400 below the 1992 Camry XLE and $500 below the Maxima SE. That margin likely will increase when rival auto makers release 1993-model prices.
The LH cars have received rave reviews from automotive writers, but experts say some import buyers may not be ready to accept Chrysler’s contention that it can deliver the quality and service for which Japanese car makers have become famous.
“Initially, they do not have the credibility to charge directly against the Japanese competition, even if they know the product quality is as good or better than the Japanese,” Jacobs said.
She said she was surprised that Chrysler did not price the LH line slightly lower at first in order to woo customers into the showroom, then raise prices as demand for the sleek new sedans builds.
That strategy was adopted by GM’s Saturn, which also was launched with the goal of regaining market share lost to imports.
Christopher Cedergren, a consultant with AutoPacific Group Inc. in Santa Ana, Calif., said Chrysler’s biggest challenge is not the sticker price but the attitude of its 4,900 dealers.
“I don’t think they’re going to have a problem getting the buyers in. I think the more difficult challenge is for the salesmen not to blow it,” Cedergren said.
In an effort to prevent that, Chrysler is spending $30 million to retrain dealers.
“They’ve spent a lot of money trying to re-educate the dealers on how to sell this car, particularly to someone who’s owned a lot of imports in the past,” said Michael Luckey, analyst with Luckey Consulting Group Inc.
