Latest News by Industry
• Price hike will be effective from Saturday
• Reservations for Hummer EV have exceeded company’s initial expectations
General Motors Co (NYSE: GM) on Friday increased the price of the Hummer EV pickup truck by $6,250 as the carmaker is seeking to mitigate rising costs.
The Detroit-based automobile giant said inflationary impacts, including higher shipping and commodity costs as well as supply chain challenges for parts and technology for the surging sticker price.
Amid high demand for cars and trucks, Hummer’s pickup variant, currently priced at around $80,000 to $110,000, has more than 77,500 existing bookings, which according to GM, has exceeded initial expectations.
The carmaker said the hike would not be applicable for the existing bookings, as the increase will come into effect for vehicles reserved on or after Saturday.
Earlier this week, GM Chief Financial Officer Paul Jacobson, at a conference sponsored by Deutsche Bank, told investors that the company has been able to offset $5 billion in higher supply chain costs by raising prices and cutting expenses, Reuters reported.
Tesla Inc (NASDAQ: TSLA) on Thursday hiked the prices across its entire lineup, with some models going up by as much as $6,000 in the United States amid ongoing global supply-chain issues and soaring raw material costs.
Picture Credit: CNET
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