GM To Raise Prices

Due to a rise in steel and commodity costs, General Motors plans on raising prices of their 2008 vehicles by up to $1,500, accoring to the Reuters news agency. Price increases will be seen on all cars purchased by dealers beginning today.

GM, which owns eleven automotive brands worldwide, says the increases will only be seen on cars and trucks sold in the United States. GM North America vice president Mark LaNeve, who heads up the vehicle sales, service, and marketing divisions, says most vehicles will see increases of between $100 and $500.

"...Many vehicles, such as the Saturn Aura four-cylinder and the all-new Malibu LS will have no increase," LaNeve said.

However, the Cadillac XLR luxury sports coupe will have a price-boost of $1,500. The increases average roughly 1.5 per-cent, per vehicle.

Although the price increases are attributed to hikes in the price of steel, platinum, other precious metals, and other commodities, GM has given no word on if they will roll back the prices should their costs go back to normal levels. The price of steel has gone up 50% since January, and is up 230% over the last two years.

Similar price adjustments are not unlikely at other American automakers. However, only GM has publicly announced the hikes. Vehicles currently in dealer inventories will not see a price increase.