Auto Price Cuts On the Way

Washington DC September 27, 2006; The AIADA newsletter reported that the Wall Street Journal today reported that GM, Ford and Chrysler may be moving away from high manufacturer incentives and rebates and looking towards value pricing and production cuts in order to get more in line with actual transaction prices and spur sales amid turbulent times.

Chrysler, for example, has lowered prices on all its Pacifica models, now down an average of $1,300, despite added safety and performance features.

Meanwhile, the dollar amount paid by the consumer from 2006 to 2007 models remains relatively unchanged.

Rising competition is leading to subsequent price cuts on international nameplate models such as Volkswagen, Hyundai, and Toyota.

VW said this week that it is pursuing a new pricing strategy that offers lower sticker prices while maintaining a high level of standard features; Toyota has cut prices on the 2007 Highlander Hybrid an average of 5.9 percent from 2006 model year prices. And the base Hyundai GLS Santa Fe model for 2007 starts at $21,595, down $700 from the 2006 model despite an additional third row of seating.