AUTOS

GM Will Raise ’97 Model Prices by 1.7%: The increase is a relatively modest hike that reflects the auto maker’s emphasis on building brand loyalty. General Motors Corp. said the price tag on a typical 1997 model passenger car or truck will be $394 higher than a comparably equipped 1996 model. At 1.7%, the increase is also well below expectations for inflation. Many economists are predicting consumer prices will rise about 3% in 1996. Analysts said GM’s move compares favorably with the average increase announced recently by Chrysler Corp., which said it would impose a 0.3% increase on some models. Separately, Ford Motor Co. said it plans to increase rebates on its popular Taurus to $1,000 from the current $600. The incentive program is expected to begin July 15.