Audi & Renault-Nissan CEOs predicting more price rises

GM announced this week that prices on all its 2009 models would increase by 3.5% and now the CEOs of both Audi and Renault-Nissan are predicting similar price hikes for their respective fleets due to rising raw material and production costs. Both Audi’s Rupert Stadler and Renault-Nissan’s Carlos Ghosn have stated that the rising price of raw materials and increased labor costs will likely force manufacturers to raise their prices.

The admission from Rupert Stadler also confirms that even the premium segment is feeling the pinch, although he didn’t reveal by how much Audi would raise prices if it decided to. The Audi boss was confident 2008 would not see any significant price hikes, but that 2009 would likely see some changes.

Ghosn revealed to reporters from The Detroit News that Nissan may have to raise their prices by 2 or 3%. He explained the Japanese carmakers were faring better than their American rivals but were struggling to maintain profits amid a stronger yen.

Some analysts are claiming that manufacturers may be forced to raise prices by 5 to 10% if the trend in steel prices and a weak U.S. dollar continues into next year. Some of the carmakers that have already announced price rises include GM, Toyota and BMW, but so far it has been for the North American market only.