DETROIT (April 19, 2011) — General Motors Co. plans to raise prices on most of its vehicles starting next month in response to escalating raw-materials costs.
GM notified its 4,500 U.S. dealers on April 18 that the increases will average $123, or 0.4 percent, starting May 2.
Much like what the tire industry is going through, the vehicle price increase is a response to the continued rise in materials costs, which has been driven by an increase in commodity prices, GM spokesman Tom Henderson said.
The price increases will be widespread across Chevrolet's portfolio, according to the notice sent to Chevy dealers yesterday. The memo said prices are slated to rise on the Camaro and Corvette sports cars, the Malibu and Impala sedans, the Avalanche truck, the Traverse crossover and the light-duty Silverado and Colorado pickups.
The memo did not mention the Equinox crossover or the Cruze compact, two of Chevy's hottest-selling vehicles.
GM's move echoes a boost by rival Ford Motor Co. On April 1, Ford lifted its prices on 2011 models an average of $117, or 0.4 percent.
Toyota Motor Sales U.S.A. Inc., coping with a rising yen and an earthquake-shattered supply chain, also is raising prices an average 1.7 percent on many 2011 Toyota, Scion and Lexus models, starting next month.
GM's Mr. Henderson cited rising oil prices as a factor but declined to say which materials are raising GM's costs the most. He also declined to comment on which vehicles would see price increases, citing competitive reasons.
As of the end of March, GM had a U.S. inventory of 574,000 vehicles, or about a 75-day supply. Mr. Henderson said the price increase was unrelated to parts shortages from Japan, which have crimped production at Japanese auto makers and some Detroit 3 operations since the March 11 earthquake and tsunami in that country.
This report appeared in Automotive News, a Detroit-based sister publication of Tire Business.