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December 19, 2007
DETROIT — General Motors said Tuesday it is raising prices on its 2008 model year vehicles an average of 1.5% to help cover increasing steel and commodity costs, according to the Associated Press.
The increases are effective with vehicles invoiced to dealers starting Wednesday and will not affect vehicles already in dealer inventory, the automaker said.
The price of most cars and trucks will increase by $100 to $500, but the prices of certain vehicles in more competitive segments will not increase at all, said Mark LaNeve, GM North America vice president for vehicle sales, service and marketing.
GM's U.S. sales dropped 11% in November from one year earlier, hurt by falling demand for trucks as well as cuts in sales to low-profit rental car fleets. GM's sales were down 6% for the first 11 months of the year.
Separately, GM said it will offer buyouts and retirement incentives to 5,200 hourly workers represented by the United Auto Workers.
GM would not reveal how many workers it expects to leave under the program, but said 5,200 are eligible.
Posted by Peter C. T. Elsworth 
at 10:29 AM to GM
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