Report on quality changes for 2005 model vehicles

Passenger cars

The value of quality changes for a sample of 13 model-year 2005 domestic passenger cars included in the Producer Price Index (PPI) for October averaged $283.12, according to estimates by the Bureau of Labor Statistics (BLS) of the U.S. Department of Labor. This change represents 73.8 percent of the average $383.86 increase in manufacturers' invoice prices for this year's models compared with last year's models.

The retail equivalent value of these quality changes averaged $310.50, representing 74.3 percent of the average $417.81 over-the-year increase in manufacturers' suggested list prices.

The $310.50 estimated retail value of the quality changes includes:

* $193.11 for federally mandated and nonmandated safety improvements, such as changes to brake and airbag systems

* $117.39 for other quality changes, such as emission improvements, changes in audio systems, and changes in levels of standard or optional equipment

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