1976 Automobile Prices

by Ann R. Horowitz on January 12, 1976
by Ann R. Horowitz and Robert W. Crandall

The attached report updates the Council’s report of November 11, 1975, on automobile prices and focuses on recent price increases announced by the Ford Motor Company. Like the Council’s initial report on car prices, this one aims to help the public better understand how the market is operating with regard to the prices of key consumer items … The updated report concludes that as long as the other automobile producers do not raise their prices, then Ford will find it difficult to sustain its new prices and at the same time maintain its current share of the new car market. The report is based on public data and on confidential data submitted by the automobile companies, and it analyzes among other things:

• the average 1976 automobile price increases by individual company;

• the companies’ total cost increases for the 1976 model year;

• the outlook for domestic car sales in the 1976 model year;

• the outlook for foreign car sales in the 1976 model year.

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