As recently as mid-1995, vehicle prices were rising faster than inflation.

And vehicle prices rose, mainly because General Motors canceled a $500 rebate on most of its vehicles.

This brought new vehicle prices down considerably and put cars into the hands of people that formerly couldn't afford such a luxury.

Government data cite recent increases in vehicle prices as an important contributor to a rising inflation rate.

Other car makers showed their concern about vehicle prices by seeking to build identities as "entry level" brands.

They say truck sales are affected more by factors like low unemployment, rising incomes, high consumer confidence, stable vehicle prices and record corporate profits.

Mr. Chalmers said the government's analysis greatly underestimates how much the rules will cause vehicle prices to rise.

Among the auto makers, Ford announced that it planned to raise its vehicle prices by an average of 2.2 percent for 1994.

The subsidies are paid directly to automakers rather than consumers, but the government expects that vehicle prices will be reduced accordingly.

The 34 starters competed in four classes based on vehicle retail price with an additional class for cars with automatic transmission.