GM's hybrid SUV prices will be "corrected" upwards next week
We thought a week or so ago that GM's new hybrid SUVs would start around $45,000. That information came from a GM spokesman, who said the hybrid version would cost about the same price as the conventional 5.3L model with similar equipment. A price like that would have meant virtually no price premium for the hybrid. Following that post, GM's website confirmed the news, and showed the costs of the Chevy Tahoe 4-Door two-wheel drive hybrid ($47,915), the Tahoe four-wheel drive ($50,720), and the GMC Yukon two-wheel drive hybrid ($48,370).
Whoops.
The Detroit News reports that GM will reveal the "real prices of hybrids" next week, and the numbers will be higher. How high? No one is saying, but GM spokesman Terry Rhadigan said this week that the website prices "weren't right when they were up there and we're not sure how they got up there." Looks like the hybrid premium is alive and well at GM. Stay tuned.
[Source: David Shepardson / Detroit News Washington Bureau]
Reader Comments (Page 1 of 1)
Domenick 8:28PM (11/07/2007)
I guess after losing $39 billion dollars last quarter they've decided they'd better increase the ol' revenue stream.
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why not the LS2/LS7? 8:32PM (11/07/2007)
Well, I'm sorry to hear it, but if you put more stuff in the vehicle, it's going to cost more.
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mike 12:02AM (11/08/2007)
I hope there are enough rich folks out there to make a difference.
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Dave 12:44AM (11/08/2007)
Referring to this chart:
http://aceee.org/transportation/TaxCreditOct07.pdf
The expected tax credit for the 2wd Tahoe is $1150 and it is estimated to save 2421 gallons of fuel in its lifetime (IRS uses 120,000 miles for lifetime from what I've read).
At $3 per gallon, thats $7263 + $1150 = $8413 in total savings.
The system is expensive to build, but appears to earn its keep. Why should GM give it away for free?
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Tim 10:13AM (11/08/2007)
Rich "early adapters" always foot the bill for new technology. This has happened with every advancement man has ever made. Costs should come down as production increases once you factor in inflation.
Speaking of inflation, both Gold and Silver have gone up 12% in the last 30 days and the dying US $Dollar has inflated against the Euro almost 18% in the last 90 days as the Fed prints money at breakneck speed in an attempt to service US debt interest payments. The more fiat money they print, the less yours is worth. If you have cash in the bank, you may want to consider exchanging it for Euros.
What's with the Dow this week? Crazy stuff…
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lawtrainee 3:22PM (11/08/2007)
whenever there is a tax credit the manufacturer just increases their prices to take that money. So no point in having a tax credit.
GM knows that smart people calculate their potential savings between cars. They set a price where they know a consumer will think they break even. So the only motivation to buy a hybrid is not to save money - but to be green -- GM, as I'm suggesting raises prices to cover any gains: after all they do not want any lowering their huge margins from these trucks.
~$48,000 for a Hybrid SUV, they are going to sell like, well, a luxury good, because that is where they are priced. Why bother when you can get a Cadillac for 50K (rebates).
Us plebians wll whine for a diesel to help save money. Well, I'm figuring on just converting a gas engine to diesel when it dies, rather than paying the premiums they want.
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paulwesterberg 12:47PM (11/09/2007)
In other news, GM's earnings for the quarter will be "corrected" downwards this week.
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