Due to a rise in steel and commodity costs, General Motors plans on raising prices of their 2008 vehicles by up to $1,500, accoring to the Reuters news agency. Price increases will be seen on all cars purchased by dealers beginning today.
GM, which owns eleven automotive brands worldwide, says the increases will only be seen on cars and trucks sold in the United States. GM North America vice president Mark LaNeve, who heads up the vehicle sales, service, and marketing divisions, says most vehicles will see increases of between $100 and $500.
"...Many vehicles, such as the Saturn Aura four-cylinder and the all-new Malibu LS will have no increase," LaNeve said.
However, the Cadillac XLR luxury sports coupe will have a price-boost of $1,500. The increases average roughly 1.5 per-cent, per vehicle.
Although the price increases are attributed to hikes in the price of steel, platinum, other precious metals, and other commodities, GM has given no word on if they will roll back the prices should their costs go back to normal levels. The price of steel has gone up 50% since January, and is up 230% over the last two years.
Similar price adjustments are not unlikely at other American automakers. However, only GM has publicly announced the hikes. Vehicles currently in dealer inventories will not see a price increase.
GM To Raise Prices
Cadillac / The XLR will see a $1,500 price hike for 2008
Caddy XLR to cost $1,500 more
By Zack Newmark
December 19, 2007 3:02 PM
Filed Under: American, Cadillac, Chevrolet, Corporate/Financial, General Motors, Saturn
Comments
das_gooney
December 20, 2007 12:25 AM
looks like gm's doing pretty bad, they could probably sell of a few of their brands and make a tonne of cash. Saab dosen't make all that much money and buick competes with cadillac... Fianancal solution right there
radmeister
December 25, 2007 5:23 AM
I think Saab makes more $ than chevy, their profit margin is much higher and has international sales. GM will sell saab last the same way Ford will sell volvo last.
hofmeyer
December 20, 2007 4:09 AM
just watch, GM will raise the prices by 1.5% and then continue to be forced to sell their sub-par vehicles with an even bigger pile of cash on the hood.
rydamee
December 20, 2007 9:44 PM
man its tuff being american right now. the big 3 is like the government. operate blindly, make extremely poor crisis decisions and have absolutely no plan to fix embarassing self imposed situations(see shot self in foot). the last vehicle we could be proud of was the z06. now thats as primitive as a viper, and i love the z06. the zr1 is americas last chance at a world beater. looks like japan and the gtr beat us to it. japan??????
radmeister
December 25, 2007 5:26 AM
They create their own crisis and then panic and jump in with both feet. Applies to politics and economics. No one forced them to go to war, and no one forced them to ignore current trends in economy and society. We will see how they pull themselves out of the serious trouble they are in now.
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Your poor dealerships are struggling to push your cars off the lots. Although, 1.5% price hike does not sound significant, any price hike on lackluster chattel will feel the heavy force of the market.
Its amazing how as Americans we are the vanguards of many industries, yet automotive design, quality, and image fall on the same level as Korean automakers. Does GM really think that they stand well above Hyundai for instance?
Please bring in new thinkers, a new philosophy, and a true revolution.