Economic News Release

Report On Quality Changes For 2009 Motor Vehicles News Release


FOR DATA ONLY:  (202) 691-5200           USDL 08-1712
FOR TECHNICAL INFORMATION:               TRANSMISSION OF MATERIAL IN
Thaddious S. Foster:  (202) 691-6443     THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 691-5902           UNTIL 8:30 A.M. (EST), TUESDAY,
http://www.bls.gov/ppi                   NOVEMBER 18, 2008


                   REPORT ON QUALITY CHANGES FOR 2009 MODEL VEHICLES

Passenger Cars

	The value of quality changes for a sample of nine 2009 model year domestically 
produced passenger cars included in the Producer Price Index (PPI) for October averaged 
$170.08, according to estimates by the Bureau of Labor Statistics (BLS) of the U.S. Department 
of Labor. This change represents 14.55 percent of the average $1,168.77 increase in 
manufacturers' invoice prices for this year's models as compared with last year's models.  

	The retail equivalent value of these quality changes averaged $185.18, representing 14.08 
percent of the average $1,315.63 over-the-year increase in manufacturers' suggested list prices. 

Light Trucks

	The value of quality changes for a sample of seventeen 2009 model year domestically 
produced light trucks included in the PPI for October averaged $675.41.  This change represents 
40.65 percent of the average $1,661.73 increase in manufacturers' invoice prices for this year's 
models as compared with last year's models.  

	The retail equivalent value of quality changes for domestically produced light trucks 
averaged $746.38, representing 39.48 percent of the average $1,890.41 over-the-year increase in 
manufacturers' suggested list prices.  
                
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Estimates of the value of quality change are based on a review by the BLS of data supplied by 
producers for similarly equipped 2008 and 2009 domestically produced models priced for the 
Producer Price Index.  Most of the estimates of quality changes in this release are derived from 
information supplied for the Producer Price Index for October.  These data also form the basis of 
some of the new vehicle quality adjustments for the Consumer Price Index (CPI).  However, it 
should be noted that, effective with the release of data for January 1999, changes made solely for 
the purpose of meeting air pollution standards are no longer considered quality improvements for 
CPI calculation purposes.









Last Modified Date: November 18, 2008
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