GM Joins Ford, Toyota In Price-Hiking

Edward Niedermeyer
by Edward Niedermeyer

You can just about kiss those worries about a US price war goodbye, as GM has become the third major automaker to raise its US market MSRPs in April alone. Like Toyota and Ford before it, GM is raising its prices by about $100 per vehicle ($123 on average) in response not to Japanese parts shortages, but steadily increasing raw material costs. According to the WSJ, the price increase takes effect starting on May 2. And, TrueCar’s Jesse Toprak tells Fox,

The advice would be, based on what we see today, we don’t see any kind of ease in price anytime soon. The prices of everything will go up, moving forward.

Now all GM needs to do is start easing off its incentives so that those MSRPs actually mean something.

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9 of 15 comments
  • SCE to AUX SCE to AUX on Apr 18, 2011

    I'd hardly call $100 a price hike, but as you say, MSRP is meaningless, anyway.

  • Buickman Buickman on Apr 18, 2011

    instead they should have lowered prices and been the good guys. how predictable? keep up the $10,000 rebates/discounts. Ewanick should be fired immediately for gross negligence and extreme incompetence.

    • See 1 previous
    • SimonAlberta SimonAlberta on Apr 19, 2011

      @mike978 ...because it doesn't work. Joe Schmo loves to brag about the "deal" he got regardless of what he actually paid. Human nature at a "compensator" at a "bargain price" to prove how virile he is....LOL

  • Ponchoman49 Ponchoman49 on Apr 18, 2011

    And you can kiss this so called futile economic recovery goodbye if oil hits $5.00 per gallon because everything around you will sore up in price with record unemployment, wage freezes and cuts etc. Most people I know have already cut back on travel plans, myself included and are watching every dollar spent living in fear of what lies ahead next year. Way to go speculators!

    • See 1 previous
    • Mike978 Mike978 on Apr 18, 2011

      You make some good points about gas prices but the recovery is hardly so-called. GDP up for 18 months, stock prices around 10-15% below record highs and unemployment trending down. Seems like a recovery to me. I wouldn`t call Obama a liar or a joker. Also how about some personal responsibility - Americans vote (well half of them do), Americans on average have spent more than they earn for decades. The Federal Govt is not the fount of all evil.

  • SunnyvaleCA SunnyvaleCA on Apr 18, 2011

    LCD television prices have been falling steadily for the last 5 years but it's not really what I would call a "price war"--more like "competitive market with maturing technology." I'd suggest that a "price war" is when companies sacrifice profits in order to gain market share or put competitors out of business. By that definition, if price increases are less than input cost increases, this could still be considered a price war scenario.

    • John Horner John Horner on Apr 18, 2011

      LCD TVs are in a classic price war, and many of the people manufacturing them are loosing money doing so as a result.