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GM To Raise Price of Vehicles

General Motors has announced that they will be raising the prices of their vehicles to compensate for the additional cost that they are spending to make these vehicles. They have estimated that the vehicles are going to rise in cost around $123. The rising cost is due to the fact that they are having to spend more on fuel to gas these vehicles up when they are being placed on lots for consumers to test drive. While they are also stating that the cost of metal has risen, leading to them to take this action. These prices are set to take place on the second of May. 

Other automakers are following suit, with Toyota stating that the cost of some of their vehicles are expected to rise around 1.2% to 2.2% to compensate for the same problems. Add into the fact that most automakers are scaling down the number of incentives that they are offering, and the consumer faces paying a bit more for new vehicles than they ever did before. 

Most people are predicting that this could cause more people to make due with the vehicle that they have. After all, most people are in the same boat as everyone else and are trying to save money in an economy in which prices are rising for food and fuel, and just basic living expenses. Though almost every automaker in the United States did post a profit for the past month, this could change once they start rising their prices of the vehicles that they are offering. 

Only time will tell what will happen in this kind of situation, however, the automakers are not going to be able to make as much profit without making these changes. If this happens, then we could be facing the bankruptcy situation from 2009 all over again. It is indeed a sticky situation, and for those that are looking to purchase new vehicles, especially GM vehicles, then the time to do that is now before the price increase takes affect.