New Price Policy

Chrysler dealers throughout the U.S. last week began setting their own retail prices, thus ditched price policies as old as the automobile industry itself. Heretofore the manufacturer has advertised "Delivered in Detroit" prices up & down the country. But now Chrysler ads will mention no prices. Distributors will buy their Chryslers, Dodges, De Sotos, Plymouths at fixed wholesale prices, sell them for whatever the traffic (and the competition) will bear.

The scheme is not new; Graham-Paige Motors tried it in 1940. Because of elastic used-car allowances, rebates, finance charges, etc., dealers have always helped set retail prices in fact. But now Chrysler dealers will get the whole job. Thus they will have a chance to recoup possible losses from having fewer cars to sell, and they will bear the onus of blame for higher prices.

In Washington, Price Policeman Leon Henderson said he had never heard of the scheme, predicted: "We'll take care of that." But Leon has not indicated he will disapprove $131 to $202 price increases on the new Buicks. Unless he changes his mind about Buick, he must logically assent to similar boosts on other makes, regardless of who does the boosting.

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