GM to Increase Sticker Prices 1.5 Percent

Citing the rising cost of certain commodities used to build its cars and trucks, General Motors announced it will raise prices on its 2008-model-year vehicles by an average of 1.5 percent.

The increase will affect different vehicles by different amounts. Certain cars in more competitive segments, like the new Saturn Aura and the base Chevy Malibu, will avoid any price increase, while the Cadillac XLR luxury coupe will see the highest increase, $1,500. Across the board, the price hikes mean consumers will pay an average of roughly $100 to $500 more for any given GM vehicle.

GM blames rising commodity costs for the increase, pointing specifically to the rising price of steel, but steel is hardly the only culprit. Lots of oil-based products are used to make cars, and oil has seen a 45% price increase in the last year. Stack that on top of a slow automobile market domestically, and you have your price increase.

Still, GM is the only company of the Big Three to announce price increases due to commodity costs, although that may change.

The increase will also only affect vehicles that arrive at dealers after today. All cars and trucks already inventoried by dealers and on lots until at least the end of the year will escape the price hike.

GM Hikes ’08 Sticker Prices (Detroit News)