Ford and Mercury Prices for 1997 Model Vehicles

08/15/96

Reuters reported that Ford Motor Company has increased their prices for 1997 models only 1.2 percent above what they were for 1996 models. Ford's price increase is the smallest among Detroit's Big Three automaker and less than half of the 2.8% price hike they stuck on 1996 models.

One industry analyst said Ford's aggressively competitive new prices reflect current market difficulties: "If you look at Ford's car programs, and some of their truck programs, you see the Taurus, Sable, Contour, Mystique and Windstar are really suffering right now," said George Magliano of WEFA Group. He added that rebates have been the only way to sell the vehicles.

Ford's market difficulties will increase when GM starts introducing the first of its 15 new cars and minivans this fall. The Taurus will face stiff competition from Toyota's 1997 Camry.

Of the Big Three, Chrysler had the fattest 1997 model price hike at an average of 1.9 percent or $422 per vehicle. GM said it will raise 1997 prices an average of 1.7 percent or $394 per vehicle.

Here's a Ford Press Release about 1997 Ford and Mercury Prices:

Ford And Mercury Announce 1997-Model Introductory Prices

DETROIT, Aug. 8 -- Introductory prices for 1997-models of
several Ford and Mercury vehicles will start at or below current
suggested retail prices, Ford Motor Company told dealers
today. Overall, Ford's prices will be up 1.2 percent, or $281,
compared with current prices of comparably-equipped models.

"For the 1997-model year, we are pleased that we have been able to
launch so many new products with new standard features while holding
our average price increase well below the rate of increase in the
Consumer Price Index," said Bob Rewey, group vice president, Marketing
and Sales.

"We are continuing to reduce our costs through efficiencies to ensure
that our customers get the most car or truck for their money. As a
result, we are keeping our average price increase below competitive
levels and are offering lower-priced entry models of several popular
Ford and Mercury products. This continues the approach used earlier
this year when we introduced the all-new 1997 Ford Escort and Mercury
Tracer at starting prices below the models they replaced."

Nameplates with lower-priced entry models in 1997 are Ford Contour,
Mercury Mystique and Ford Windstar.  Suggested retail prices will
start at $13,995 for Contour and $14,495 for Mystique, about $500 less
than the starting prices for the 1996 models. Suggested retail prices
for the Ford Windstar minivan will start at $18,995, down $1,175
compared with the lowest- priced 1996 model.

Starting prices for other popular Ford and Mercury cars will be
unchanged from current prices. Suggested retail prices for the
1997-model Ford Taurus sedan will start at $18,545 -- the same as the
starting price for the 1996 model. The lowest-priced models of the
1997 Ford Escort and Mercury Tracer, which went on sale in May, also
will remain unchanged at $11,430 and $11,560, respectively.

Prices are effective immediately (note: all prices listed in this
release include destination and delivery charges).  Prices for Lincoln
cars will be announced at a later date. Public introduction for most
1997 models is scheduled for October 2, 1996.

Paul Dever -- The Auto Channel