GM Being Smart?

Latest news out of GM, is that a portion of their '07 models will have a price increase. Given that the price of a new car does fluctuate with available rebates, to categorically state that there is going to be an increase won't bode well with consumers and investors alike. What this does, is resign to the fact that it's costs per vehicle are fixed, and being passed on to the consumer. What this does, is give the public the perception that the costs per vehicle (hint - read UAW benefits) will not change.

I realize that GM has done some cost cutting, but more needs to be done with the labour and benefit costs. The legacy costs with GM, and the others, will not go away, and will not sit well with consumers.

I would be suprised if they are successful in passing along the increases...GM's stock price won't be doing much, and with analysts giving it a target of $40, I think this is over-optimistic. The overall cost of the vehicle must be reduced, in conjuction with downsizing the production to market share. Wagoner still has a long road ahead, and these issues are not being addressed.

Same will happen with Ford and Chrysler. Toyota seems to be the big buy, as the price gap on vehicles get closer. Look for Toyota to gain with the latest GM pricing.