The company said the price increase was due to growing costs 04/25/2011
Due to the rising price of materials, General Motors Company (GM) has announced that it will be raising its prices tor consumers.
The Wall Street Journal reports that the automaker will be increasing its prices by an average of $123 per vehicle because of the growing cost of material needed for production.
The increase will go into effect on May 2 and will include the majority of the company's production line of cars and trucks. This will include brands owned by GM such as Buick, Chevrolet, GMC and Cadillac. Although the Japan crisis has affected a number of suppliers for the global auto industry, the news provider reports that this increase is not a result of the tragedy.
"It is solely related to rising materials costs," Tom Henderson, a GM spokesman, told the news provider.
According to Fox Business, this increase represents 0.4 percent of the total cost of an average GM vehicle. The company reports that commodity costs are across the board, such as oil, products that are made from oil and aluminum.