GM to raise prices for 2008 vehicles

http://money.cnn.com/news/newsfeeds/articles/djf500/200712181630DOWJONESDJONLINE000658_FORTUNE5.htm

General Motors To Raise Prices On Certain '08 Model Vehicles
Dow Jones
December 18, 2007: 04:30 PM EST

DOW JONES NEWSWIRES

General Motors Corp. (GM) intends to increase prices on its 2008 model vehicles by as much as $1,500 due to rising commodity and steel costs.

The Detroit-based automaker said the price increases, which are effective Wednesday, will average 1.5%.

The adjustments range from no change on its 2008 Chevrolet Malibu LS price to a $1,500 increase on the Cadillac XLR, the company said. Most vehicles will get price increases of $100-$500.

General Motors said vehicles already in dealer inventory won't be affected.

GM shares rose 54 cents, or 2%, to $26.93 near the market's close.

No suprise. It has to happen and prices will only keep going up due to the bull**** they are required to do. Has to be paid for somehow...

Great, the 2007 XLR has a $7,500 rebate, now the 2008 can have a $9,000 :rolleyes:

1.5% is well below inflation. I guess this is a good thing, no?

Ironic how China is sucking all the worlds steel up and to produce things that usually just come back over here.

Anytime prices increase under the inflation rate, I look at it as them getting cheaper, really...

The XLR increasing 1500 bucks when they're already having to rebate the hell out of the thing just to get them off dealer lots is pretty stupid.

Inflation is about 4.5% to 5%. Three 1.5% price increases in a year should just about cover it.

Inflation is about 4.5% to 5%. Three 1.5% price increases in a year should just about cover it.

Federal Reserve is inflating the money supply even faster than that
http://www.shadowstats.com/imgs/sgs-m3.gif

but here is CPI

http://www.shadowstats.com/imgs/chartSGS01-39.gif

1.5% isn't bad considering the amount cars have gone up in Canada and Europe measured in US dollars.

Prices on cars typically go up every year. I think this is a mid year move which is why it is making news. Think about the base solstice started at 19995 at release. Now, it is 22415.

Ironic how China is sucking all the worlds steel up and to produce things that usually just come back over here.Actually most of the steel they are buying is for the huge hydro electric project they're working on. Its been hitting us hard on the construction side for a few years now.

http://en.wikipedia.org/wiki/Three_Gorges_Dam

Actually most of the steel they are buying is for the huge hydro electric project they're working on. Its been hitting us hard on the construction side for a few years now.

http://en.wikipedia.org/wiki/Three_Gorges_Dam

Exactly. That thing will be a beauty if they ever get it finished.

Great, the 2007 XLR has a $7,500 rebate, now the 2008 can have a $9,000 :rolleyes:

Yup, I was gonna say--WHO CARES! GM gives incentives in the multiple thousands for some vehicles just to move them, so why is this even news?

i think its a market scheme too. the xlr is a good example alright. "wow im getting a 9000 dollar rebate on a 82000 dollar car!" "im saving tons of money yeah!" the incentives will go up making the car seem cheaper. i guess its a good way to sell cars.

i think its a market scheme too. the xlr is a good example alright. "wow im getting a 9000 dollar rebate on a 82000 dollar car!" "im saving tons of money yeah!" the incentives will go up making the car seem cheaper. i guess its a good way to sell cars.

Small temporary rebates make me think 'good deal'.

Permanent massive rebates make me think 'overpriced, nobody wants it, they can't get rid of them'.

Small temporary rebates make me think 'good deal'.

Permanent massive rebates make me think 'overpriced, nobody wants it, they can't get rid of them'.

Our local Ford Dealer still has a new '06 Explorer on their lot and they've got sale prices painted all over the outside windows trying to get rid of it. I think it's a white XLS V6...At this point, they'd have better luck leaving the keys and an envelope full of cash on the seat with the doors open--in downtown Seattle.

A vehicle doesn't feel like it's a "premium" vehicle if the manufacturer can't give the things away, even with $9k cash in the trunk ('06 Jeep Commander). GM really needs to cut the rebate crap.

A vehicle doesn't feel like it's a "premium" vehicle if the manufacturer can't give the things away, even with $9k cash in the trunk ('06 Jeep Commander). GM really needs to cut the rebate crap.

Yep... that's why all of the import luxury brands almost never do rebates at all. They either do financing offers or artificially beefed up lease residual values. It's really not that much different than a rebate, but the discount is more convincing and less cheapening to the end consumer.

Yep... that's why all of the import luxury brands almost never do rebates at all. They either do financing offers or artificially beefed up lease residual values. It's really not that much different than a rebate, but the discount is more convincing and less cheapening to the end consumer.

Production should be limited to keep high end cars exclusive. Kind of like how if a restaurant or club is hard to get into or an event sold out it creates even more demand. People want to be part of something exclusive and are willing to pay for it.

A vehicle doesn't feel like it's a "premium" vehicle if the manufacturer can't give the things away, even with $9k cash in the trunk ('06 Jeep Commander). GM really needs to cut the rebate crap.

Nice try, but the biggest "rebate" ever given on a Commander in '06 was $6k. I know. I sold them.