Weak dollar increases price of imported autos in US

SOUTHFIELD, Michigan - Foreign cars are selling in the United States at the biggest price premium to domestic autos in almost 12 years as a weak dollar curtails imports of lower-priced models, allowing General Motors Co and Ford Motor Co to gain share.

The average selling price for a new imported car climbed to a record high of $31,536 in August, according to the US Bureau of Economic Analysis. That was $7,614 more than the average domestic-made car, the biggest gap since December 1999. With Toyota Corollas and Honda Civics in short supply, more consumers have turned to Chevrolet Cruze and Ford Fiesta cars.

The weak dollar discourages automakers such as Toyota Motor Corp and Honda Motor Co from importing lower-priced cars, which have slimmer profit margins. While Japan's March tsunami disrupted auto exports, continued deliveries of premium-brand cars such as Volkswagen AG's Audi boosted luxury autos to a higher proportion of imported-car sales, said Paul Ballew, chief economist for Nationwide Mutual Insurance Co.