Smaller, but Big

Hoping to avoid a repeat of the stinging sales slump that followed last year's 8% average increase in auto prices, General Motors announced last week that price rises on 1976 models will be considerably lower than in the past two years. The average increase will be $206, or 4.4%, compared with $400 or so on cars in each of the 1974 and 1975 model years. Changes range from a reduction of $211 in the price of the Monza Towne Coupe to an increase of $808 for the racy Corvette; the price of the popular Chevy Impala four-door sedan will increase by $158 to $4,706. Other Detroit carmakers are likely to follow GM's price lead.

But consumers expecting to pay only 4.4% more for their new cars are in for a surprise. Optional features, such as air conditioning and power steering, will average 6% higher than last year, and GM models will generally carry less standard equipment. Many once standard items like tachometers, steel-belted radials and power brakes have been made optional--particularly on compacts and subcompacts--and the buyer will have to pay extra if he wants them. In effect, higher options prices will add another $62 to the final price of an average car, for an overall increase of 4.7%. GM Chairman Thomas Murphy contends that the increases will not off set the company's rising production costs, which have gone up an average $375 per car since last fall. Even so, motorists will pay in excess of $1,000 more for an average '76 car than they paid for an average '73 model.

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