GM increases prices on most of its 2008 models
GM increases prices on most of its 2008 models
Automotive News | December 18, 2007 - 4:24 pm EST
DETROIT - General Motors announced it will boost prices on many of its 2008 vehicles from zero to $1,500 on certain 2008 models to help cover the rising costs of commodities. The average price boost will be about 1.5 percent and will take effect on vehicles invoiced to dealers on or after December 19.
"While most cars and trucks in our portfolio will go up between $100 to $500, in hotly contested segments, many vehicles such as the Saturn Aura four-cylinder and the all-new Malibu LS will have no increase," says Mark LaNeve, GM North America vice president, vehicle sales, service and marketing.
Price increases will range from $0 on the 2008 Chevrolet Malibu LS to $1,500 on the Cadillac XLR luxury sports coupe. The price hike will not impact vehicles already in dealer inventory, which continue to be available for sale until the end of the year during the GM Red Tag Event.
"I am not surprised," says Ed Williamson, owner of Williamson Cadillac Co. in Miami. "Traditionally they do some price increases in December. I think there’s enough vehicles in inventory at the old price to get us through the period."
He adds that 65 percent of his vehicle business goes to leases and so a price increase turns out to be minimal once factored into a lease payment.
