• Dec 19, 2007


The cost of materials that go into making your car are getting more expensive, specifically steel and other commodities, and General Motors has decided to pass that extra cost onto the consumer by raising the price of its 2008 model line an average of 1.5%. Hey, at least they're being up front about it. The increase also won't affect every car. The 2008 Chevy Malibu and Saturn Aura, for instance, won't go up at all. Most other vehicles, however, will see a price increase of between $100 to $500, while the MSRP of the Cadillac XLR gets slapped with an extra $1,500. GM tells us that the increase doesn't apply to vehicles already in dealer stock, only to vehicles invoiced to dealers on or after today, December 19th. Even with the price increases, GM still claims its 2008 line of vehicles "remain the best value in the market place" thanks to its "best warranty coverage of any full-line manufacturer" and "award-winning designs". That's a bold claim to make with brand's like Hyundai and Kia in the marketplace, as well as other import automakers that don't have to also roll up huge legacy costs into the price of their vehicles.

[Source: GM, Photo by Justin Sullivan/Getty]

PRESS RELEASE:

GM Announces Price Increases To Partially Recover Rising Commodity Costs

Increases Range From $0-1,500 On Select Models, Averaging About 1.5 Percent

DETROIT – GM today announced a price adjustment on most of its 2008 model year vehicles to partially recover increasing steel and commodity costs. The price increases, averaging about 1.5 percent, are effective with vehicles invoiced to dealers on and after December 19, 2007.

"This targeted price increase is designed to partially recover ever-increasing commodity costs. While most cars and trucks in our portfolio will go up between 100 to 500 dollars, in hotly contested segments, many vehicles such as the Saturn Aura four-cylinder and the all-new Malibu LS will have no increase," said Mark LaNeve, GM North America vice president, Vehicle Sales, Service and Marketing. "With our award-winning designs and the best warranty coverage of any full-line manufacturer, our 2008 vehicles remain the best value in the market place."

Price increases will range from $0 on the 2008 Chevrolet Malibu LS to $1,500 on the Cadillac XLR luxury sports coupe. Importantly, this price increase will not affect vehicles already in dealer inventory, which continue to be available to customers until the end of the year during the GM Red Tag Event.


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  • 61 Comments
      J
      • 7 Years Ago
      MATERIALS?! MAYBE. UAW MUST HAVE GOTTEN WHAT THEY WANTED! DOES ANYONE KNOW HOW MUCH THOSE GUYS ARE GETTING PAID FROM THE LINE ALL THE WAY UP TO THE TOP?! AND WE NEED TO PAY MORE! AND BESIDES THEY ARE JUST FOLLOWERS NOT LEADERS IN BOTH DESIGN AND WARRANTY. I HAVE BEEN PURCHASING GM PRODUCTS FOR 17 YEARS AND I AM NOT CERTAIN THE QUALITY (NOT THE FEATURES) HAS GONE UP.
      • 7 Years Ago
      o please people..get off the cross...somebody needs the wood. Last time I checked, very few (if any) of new car prices go DOWN every year. DUH! GM cars have been greatly improved over the past models, and the JD Power record(s) and recent reviews are showing that. If this story were about BMW or Honda raising prices, nobody would be posting comments...but GM cars are once again, just as good if not equal to/better than the competition...and that, my friends, can support a 1.5% increase in costs.
        • 7 Years Ago
        Well said. I sometimes wonder if the readership here is into cars or into imports. I'll take my money to a domestic any day of the week, with GM currently leading the way.
        • 7 Years Ago
        Agreed.

        I think the "fan boy" base between imports and domestic is fairly even in number. (That alone speaks volumes about the average American.)

        GM is making higher quality vehicles than at any point in their history, with great styling and value on new products. The products have to come first and GM finally "gets it". Just in time I'd say. Two thumbs up to Ford as well thanks to their excellent quality numbers.
      • 7 Years Ago
      Still less than the average inflation rate of about 3.4%, But I guess noone told GM that their cars are too expensive as is.
      jim dagostino
      • 7 Years Ago
      all cars are already way the hell out of line ,apparently
      the c.e.o.s of automanufactures ,believe that we are all billionaries in this country,it's come to a time when you should buy used and rebuild, it would still be much cheeper the new,and believe it or not people do drive better and safer ,so gentlemen just keep cranling up those prices,hopefully they will drive you right out of business.
      • 7 Years Ago
      The commodities that make up cars go up all the time...Prices go up all the time. The curiosity here is that they decided to announce it. Most car companies...heck most companies would have just raised the price and been done with it.

      Congratulated themselves in their annual report
      "This year we were able to exert price pressure to increase our margin on each vehicle"

      But the question is...Why announce this?

      BTW as for the current debate...I own a GM (Saturn) and a Jeep Wrangler...Both great cars, but I've owned imports too...There is no such thing as an American or Japanese or Korean car company...They are multi-national corporations that do business world wide...Have been for years.
      BBILL
      • 7 Years Ago
      You must be a jap. MY driveway makes a statement. I'm proud to be an American. You're what's wrong
      with our economy...

      Dave
      • 7 Years Ago
      The cost of metal may be going up but autos are now mostly plastic.some of that increase is for advertising which accounts for a portion of that increase also robots are doing most of construction so i dont belive wages are driving increase.great way to sell leftovers saying price will go up.also car cost dont figure in goverment inflation figures. go figure.Its all marketing
      • 7 Years Ago
      Wait a minute. Just a couple of months ago they were crying poor mouth when they negotiated a new contract with the UAW. So between what they got back from the union and their price increases now looks pretty sweet. The unions today are a joke. The union should of told G.M. will give back wages and bennys but if you raise prices we're shutting you down. That should of been in the contract. In essence f**k wall st.
      • 7 Years Ago
      Is it a coincidence that this is announced the same day as "President Bush signs energy bill into law?" I don't think so.
        • 7 Years Ago
        I just have one question. Is this the promised result of the UAW deal? Increase on 1,500?

        Can GM seriously justify any price increase on Chevy Aveo? Even as little as 1 penny?
      JAMEY
      • 7 Years Ago
      GENERAL MOTORS THE WORST OF THE JUNK CAR MAKERS AND THERE RISING THERE REDICULOUS PRICES AS THEY ARE? WHAT A JOKE I HOPE THEY GO BANKRUPT.
      • 7 Years Ago
      I'm buying a new car this year and want to buy American but the foreign cars hold up better and are far more superior in terms of dependability so I'm not going to take a chance. I currently own a Ford and won't buy another due to their support of gays. I've owned several GM's and had things break down at an early stage that shouldn't have which were out of warranty and cost me plenty. So the next car I buy is going to be either a Honda or Toyota.

      It's the big 3 automakers own damn fault. They have shot themselves in the foot. They refuse to make more dependable vehicles. It's pathetic that for decades, that has been the #1 complaint and they still haven't done anything about it. So the foreign companies grew and sold more vehicles. If your going to build crap, then back it up with longer warranties.
        pedron
        • 7 Years Ago
        I really don't consider Honda and Toyota as so 'foreign' anymore, with the number of jobs, and the boost to economy, that they're providing here in the US.

        And unlike other manufacturers, these two (and I guess Nissan, Suzuki) are not just big in one or two countries, it's pretty much world-wide.... anywhere and everywhere... kinda like Coke, Mcdonalds, Mickey Mouse... lol ....but it says a lot about product reliability.
      • 7 Years Ago
      My 07 Impala is quieter, looks better, rides better and
      performs better (V-6) than any Camry, Accord or Altima
      I drove before I bought a Chevrolet. I paid $ 16,800 out
      the door and they turned my upside down trade for me
      to boot.....................GM is OK with me AND this car runs
      great in the Mountains of Colorado with Variable Valve
      Timing which really helps performance, 211 HP !!!
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