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Chrysler to raise prices 2% on 2008 cars, trucks

June 14, 2008|From Bloomberg News

Chrysler said Friday that it would boost prices an average of 2% on all 2008 model year cars and trucks because of rising costs for steel and other commodities.

The increase will take effect on vehicles shipped to dealers starting Monday, Chrysler spokesman Stuart Schorr said. Chrysler's U.S. sales fell 19% in the first five months of this year.

"Today's economic conditions and future forecasts indicate unrelenting pressure as it relates to commodity prices, specifically steel, which have forced our hand," Schorr said.

Chrysler said the increase would bring its models in line with competitors' actions. General Motors Corp. raised prices as much as $1,500 in December because of higher commodity expenses and Ford Motor Co. Chief Executive Alan Mulally said May 22 that the burden was among the reasons his company was forced to abandon a 2009 profit goal.

Chrysler reported a $1.6-billion operating loss for 2007 and a $650-million net loss for 2006, when the Auburn Hills, Mich.-based automaker was part of the former DaimlerChrysler.

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