GM to Raise ’87 Car Prices 2.6% Over This Year’s

General Motors Corp. will raise the prices of its 1987 cars by an average of 2.6% over the previous year’s models, the auto maker said Friday.

“This price increase reflects the partial recovery of higher material, labor and other manufacturing costs,” GM said.

The 1987 models go on sale on Oct. 9.

Announcement of the price increases came as GM was offering bargain-basement financing of 2.9% on its 1986 models in an effort to clear out a nearly 80-day supply of unsold cars. Competing Ford Motor Co. had about a 50-day supply at the end of July, and Chrysler Corp. had about a 65-day supply.

Price Range Varies

“The range in base prices would go from a reduction of $828 on the (Chevrolet) Chevette coupe to an increase of $778 on the Cadillac Brougham,” GM spokesman Cliff Merriott said.

The price of the low-end Chevrolet Cavalier four-door sedan will increase by $250 to $7,449, the Olds Cutlass Supreme by $450 to $11,539 and the Buick Electra Park Avenue by $686 to $18,769, Merriott said.

GM’s 1986 models on average were priced 3% above the previous year’s models, Merriott said.

Ford Announcement Pending

Ford was “several weeks away from making an announcement” of 1987 car prices, company spokesman John Sieg said.

Chrysler last month said it tentatively had decided to raise 1987 car prices by less than 2% on average over 1986 prices.

The price changes referred to the manufacturer’s suggested retail prices. Most cars are sold at less than the sticker price through negotiation with dealers.

GM’s price comparisons included adjustments for optional equipment made standard and product changes for safety, fuel economy, corrosion protection and exhaust-emission reduction, the auto maker said.