General Motors Raises Prices Again Amid Auto Market Recovery

General Motors Corporation has announced its second round of price increases in as many weeks, this time affecting popular models such as the Chevrolet Camaro sports coupe and the GMC Jimmy compact sport utility vehicle. The price hikes, ranging from $250 to $310, are attributed to the high demand and short supply of these vehicles, which are in high demand. This move by G.M. has sparked concerns that it may undercut the efforts of domestic auto makers to regain market share from Japanese imports.

Key Takeaways:

• The General Motors Corporation has announced its second round of price increases in a week, affecting popular models such as the Chevrolet Camaro sports coupe and the GMC Jimmy compact sport utility vehicle.
• The price hikes, ranging from $250 to $310, are due to the high demand and short supply of these vehicles.
• All three domestic auto makers, as well as Japanese manufacturers Honda, Nissan, and Mazda, have raised prices this spring as the recovery in the United States auto market showed signs of durability.
• Some auto industry analysts have expressed concern that the price increases by domestic auto makers may undercut their efforts to draw customers away from Japanese imports and regain market share.
• The strong yen has forced Japanese auto makers to raise prices, with some cars costing as much as $2,000 more than their domestic competitors.
• General Motors raised prices by $250 to $310 on its Chevrolet Camaro and Pontiac Firebird sports coupes and by $200 on its compact sport utility vehicles.

Statistics:

• The price increase ranges from $250 to $310 on popular G.M. models.
• The strong yen has forced Japanese auto makers to raise prices of some cars by as much as $2,000.
• The General Motors Corporation has announced two rounds of price increases in as many weeks.

Sources:

• "General Motors Announces New Price Increases," Bloomberg News **(undated)**
• David M. Garrity, auto industry analyst for McDonald & Company, quoted in Bloomberg News (undated)
• John Palermo, general sales manager at Capitol Chevrolet-Geo, quoted in Bloomberg News (undated)