• Apr 19, 2011
General Motors has joined the list of automakers who are hiking prices this year, thanks to increased oil and steel costs. Thanks to escalating prices worldwide, Toyota and Ford have both already implemented similar MSRP hikes.
On average, Buick, Cadillac, Chevrolet and GMC models will receive a price bump of $123 when the spike goes into effect May 2. According to the Detroit Free Press, General Motors' brass notes that increased oil prices affect the cost of interior plastics, tires and filling the cars with fuel before delivery. Steel and other metals have gone up, too, making the price uptick a necessity.

[Source: The Detroit Free Press]


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  • 17 Comments
      • 3 Years Ago
      [blocked]
      Thipps
      • 3 Years Ago
      Look at the prices of commodities or anything with "real world" value. prices are not going up. its just taking more dollars to buy the same products. Inflation at its best, and our government is lying about the real unemployment rate and inflation numbers. or better said, prices are not going up, dollars are going down.
      Olsparkee
      • 3 Years Ago
      Why is this a story? Almost everything in every category is going up in price. My first house loan was at 13.5% and my first new car (84 CRX) was 14%. Inflation will make this a daily announcement.
        JamesG
        • 3 Years Ago
        @Olsparkee
        The root cause of it all is the ever diminishing/erosion of the purchasing power of the US$...
        lne937s
        • 3 Years Ago
        @Olsparkee
        Inflation is at historic lows. However the real reason this is a story is wages have not gone up, making people feel inflation more... But realistically, we will need to see higher prices in the US if we want growing wages. Remember what Japan asked the IMF to do recently? Devalue the Yen. Japan and China have both adopted policies that devalue their currencies vs. the Dollar. In the US, we have tended to follow a strong dollar policy. This makes our exports more expensive and imports cheaper- leading to outsourcing. It increases the value of consumption and decreases the value of production. It increases the value of capital (which is invested anywhere in the world) and decreases the value of labor. It increases the value of services and devalues manufacturing. While the dollar needs to retain value and we should have imports and exports, this has gotten out of balance. We consume more than we produce. We import more than we export. We have stagnant wages. We outsource production. It isn't sustainable. A correction in the value of the dollar helps bring our economy back into balance. You may not have as easy of a time buying cheap imports, but you are more likely to have a job (that typically pays better).
          lne937s
          • 3 Years Ago
          @lne937s
          OK, you want to look at total inflation, including energy, rather than core inflation which is overall more stable and less subjuct to fluctuations... so lets look at it. In 2009, inflation including energy and food was -.34%, a.k.a. deflation (factoring in the drop in oil prices) In 2010, inflation was 1.64% all inclusive so an average of 1.3% inflation over the past two years. In 2008 (before Obama became president), it was 3.85%, primarily due to a rise in oil prices In 2011, inflation was a at a 2.68% annualized rate last month, but will probably be down in April due to a recent small drop in oil prices.... It will continue to go up and down month by month with some people freaking out when it goes up and staying quiet when it goes down. However, both core and total CPI average out to 3.4% inflation with core just being a more stable number, less subject to fluctuations. We are still at historically low overall inflation rates even including commodity prices. http://www.inflationdata.com/inflation/inflation_rate/historicalinflation.aspx There are truly bigger things to worry about in the economy than inflation. Some people here seem to want to take us back to the economic policies of Herbert Hoover. That didn't work out so well for the country. Depressions are not something you want to have "Great" associated with.
          Olsparkee
          • 3 Years Ago
          @lne937s
          Really? Have you looked at the cost of the various items you buy? Inflation as a percentage announced by the government is a manipulated number that is impacted downward by the cost of housing and specifically EXCLUDES Energy and Food which are the in the top 5 of factors which result in Real Inflation. The loss in value of my home doesn't affect me unless I buy/sell but does affect the inflation rate. Of course, if you don't have to worry about electricity, gas, food or clothing, then I accept your comment.
          Thipps
          • 3 Years Ago
          @lne937s
          Inflation at historic lows?????? are you joking, ask anyone here if the cost of living is going up. everyday things we need are more expensive because our money is worth less and less daily. just look at food and oil. how much is it costing you to heat or cool your house. how much is it costing to fill up your car, how much are you spending on groceries. the price's of commodities are exploding right now and you are actually trying to tell people inflation is at a record low. this baffles me Good luck
      skareiva
      • 3 Years Ago
      Irony here is, there's an article on Autoblog Green about how Ford saved 430,000 gallons of oil by using recycled carpeting in the production of their cars. http://green.autoblog.com/2011/04/17/how-fords-use-of-ecolon-has-cut-its-oil-consumption-by-430-000/ I think just hauling my living room rug into the dealership should more than cover $123. They get you coming and going....
      dtanker607
      • 3 Years Ago
      Just another day of GM hosing the consumers over their bad product to keep the end result of $ for the empire of management.
      NB
      • 3 Years Ago
      LOL $123 a price hike? OK... Sure....
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