For the third time since January, Ford is raising prices on 2011 models. In May, Ford raised prices 0.4 percent, or an average of $124, per vehicle due to price increases for steel, aluminum, rubber, oil and other materials, the Detroit Free Press reports.
The automotive industry overall has increased vehicle prices 1 percent the past few months, CNBC reports.
The previous two price hikes in April and January were also for higher materials prices, not the earthquake and tsunami in Japan, Todd Nissen, a Ford spokesman, told Bloomberg News. Since January, Ford’s price increases total an average of 1.3 percent, or $375 per vehicle.
Ford rival GM also increased its prices an average of 0.4 percent last month, or about $123 for 2011 models, the Detroit Free Press reports. Toyota also boosted prices on its 2011 models in May, ranging from about 1.2 to 2.1 percent.
Despite higher new car prices overall, automakers are still spending about $2,320 per vehicle on new car incentives, the Detroit Free Press reports. Although incentive spending is down about 14 percent compared to a year ago, there are still cash back incentives, low financing rates and discounted lease deals available at many automakers. Ford will announce its June car deals this week. In May, Ford’s deals feature zero-percent financing and several thousand dollars in cash back rebates on models like the Flex, Focus, Mustang, Expedition and Fusion.
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