Filed under: Car Buying, GM
GM raising prices 1.5% on average
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.
Reader Comments (Page 1 of 4)
Tyre 12:28PM (12/19/2007)
"remain the best value in the market place" thanks to its "best warranty coverage of any full-line manufacturer" and "award-winning designs"
Are these people delusional? They're on the verge of falling apart and they still act like they are the best in the biz. You can't improve on something until you acknowledge that it's flawed.
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EnviroBob 1:11PM (12/19/2007)
Yes, it's carefully phrased PR copy, which means that one would be hard pressed to completely refute what they say.
"remain the best value in the market place":
Compare the true cost to own GM vehicles, ie; an Impala costs less to own than a Camry according to edmunds.com. You can't go by re-sale value as a percentage of MSRP, you need to go by re-sale value as a percentage of actual transaction price. That's the real world out of pocket expense incurred by the customer.
"best warranty coverage of any full-line manufacturer": Key words: 'full line'. Neither Hyundai nor Kia offers any truck products.
"award-winning designs": They have won Car and Truck of The Year Awards, among others, for vehicles in their current line up.
In the world of marketing and PR, it's not always exactly what you say, but how you say it.
cowboy bob 2:00PM (12/19/2007)
Wait..didn't Chrysler just come out with 10 years/8K or something? They offer a "full line" don't they? Seems like I heard about "lifetime" drivetrain too. Anyone know?
Derek 10:00AM (12/20/2007)
The Chrysler lifetime warranty does not apply to all Chrysler (or Dodge) vehicles. GM's 5/100,000 warranty applies to everything.
John 7:44AM (12/23/2007)
Best warranty? What about Hyundai and Kia 60,000, 5 yr bumper to bumper?
Larry 2:13PM (12/23/2007)
Your right - Fords stock has gone from $37 to $6 -- GM has gone from $90 to $26, and Toyota has gone from $45 to $107. It really looks like Ford and GM are beating the competition.
mike 12:29PM (12/19/2007)
Boy... TenGears had that story running since 9:56 A.M.
http://www.tengears.com/home/2007/12/19/gm-announces-price-increas-of-15-on-most-2008s.html
Old news. Let's see how long it will take Jalopnik to publish this story.
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Menice 12:46PM (12/19/2007)
posting an hour later is old news?
man, if your gonna be a nit picking prick w/useless posts go elsewhere.
"best warranty coverage of any full-line manufacturer" and "award-winning designs"....
someones been hitting the bong for that comment.
500 12:30PM (12/19/2007)
Is it a coincidence that this is announced the same day as "President Bush signs energy bill into law?" I don't think so.
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mike 12:35PM (12/19/2007)
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?
Jason Bird 12:38PM (12/19/2007)
Not to worry...they will be giving it back in incentives next week!
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espo19047 4:37PM (12/19/2007)
Why all the hate? Have you ever owned a GM car? These postings sure do bring out the worst in people...
Jason Bird 4:46PM (12/19/2007)
Yes I have owned GM cars. Currently one import (Toyota US Built), and two domestics (Lincoln, and Chrysler).
Hate? I simply stated the obvious. Ford, GM and Chrysler have been trying to wean customers off of the incentives for years. Now they have given up and build them into the budget.
I have had long time GM buyers tell me that they won't buy an import because they don't have incentives. All the more incentive for GM to continue the programs.
If you want hate though...what's up with the nose on the new Malibu...serious case of the uglies. Who let them stick that nose on an otherwise innoffensive car?
That said, the new Buicks are nice looking (especially the Enclave), Cadillac has style, the Vette is beautiful...what happened to the Malibu?
DCragtop 1:09PM (12/19/2007)
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.
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MemphisNET 1:13PM (12/19/2007)
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.
Whitie 1:26PM (12/19/2007)
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.
jwsbnd007 2:41PM (12/23/2007)
I don't know what you are smoking, but it has affected reality. GM has not made a quality vehicle since the 1960s. Toyota gets a big share of the market and their quality is going in the toilet too. Honda now has the quality market.
Jonathan 2:32PM (12/19/2007)
1.5%, is that after inflation?
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MikeSS 2:33PM (12/19/2007)
Oh man, here we go again with all the
"GM is has one foot in the grave! Their products are junk!"
This is getting old. It is funny what ignorance+peers+popular misconception can all lead too
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BBILL 7:36PM (12/23/2007)
You must be a jap. MY driveway makes a statement. You're what's wrong with our economy...