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Inflation Hits Automakers As Raw Material Prices Make GM Raise Prices

General Motors will raise prices on most vehicles starting next month as it passes on raw material costs. The automaker told its 4,500 U.S. dealers that increases will average $123, or 0.4% starting May 2. The increases will be spread across Chevrolet's portfolio. The memo GM sent to Chevy dealers did not, however, mention the Equinox crossover or the Cruze compact, two vehicles that Chevrolet dealers are selling at a brisk pace.

Rival Ford Motor raised its prices on April 1 by about the same percentage. Toyota, which is dealing with the earthquake and currency imbalance in Japan, is raising prices an average of 1.7% starting next month for Toyota, Lexus and Scion vehicles.

Read the whole story at Automotive News »

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