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General Motors Announces Price Increase


2011 Buick Regal

2011 Buick Regal

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General Motors has announced an upcoming price increase on vehicles from Buick, Chevrolet, GMC and Cadillac, due largely to the increase in oil and metal costs.

The automaker hasn’t provided a model-by-model breakdown yet, but states that the average per-vehicle increase will be $123. GM did not provide a list of included or excluded vehicles, only saying that the price increase affects nearly all models from the automaker.

Increasing oil prices have led to a substantial uptick in the cost of producing plastic components, vinyl materials and tires, as well as the cost of filling new cars with oil and gas. Metal prices are up, and so are the costs of shipping raw materials to manufacturing plants, necessitating a consumer price increase similar to one announced by Toyota earlier this month.

GM's new pricing is set to go into effect on May 2.

[Detroit News]

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Comments (2)
  1. This makes no sense, every GM car sold has a rebate on it and a substantial one to boot.
    Why would you need to raise prices? Just lower the rebate by the $123 or whatever.
    This is so dumb.
     
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  2. Andy, I suspect the money comes from two different accounts. Rebates come from a pre-funded marketing account, while product costs fall under manufacturing.
    GM has already started to reduce the rebates offered on current products, and I'd expect to see even fewer rebates in the future (especially if the situation in Japan creates a shortage of competitor's products).
     
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