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GM hikes Hummer EV price by over $6,000 as commodity, shipping costs rise

Published 06/17/2022, 04:11 PM
Updated 06/17/2022, 04:16 PM
© Reuters. U.S. President Joe Biden drives a Hummer EV as he tours the General Motors 'Factory ZERO' electric vehicle assembly plant in Detroit, Michigan, U.S. November 17, 2021. REUTERS/Jonathan Ernst
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(Reuters) - General Motors Co (NYSE:GM) on Friday raised the price of its Hummer EV pickup truck by $6,250 as it seeks to mitigate higher commodity and shipping costs amid high demand for cars and trucks.

The pickup, currently priced at about $80,000 to $110,000, has more than 77,500 existing bookings which will not be impacted by the price hike as it will come into effect for vehicles reserved on or after Saturday, GM said.

The company has been able to offset $5 billion in higher supply chain costs by raising prices and cutting expenses, GM Chief Financial Officer Paul Jacobson told investors at a conference sponsored by Deutsche Bank (ETR:DBKGn) on Wednesday.

© Reuters. U.S. President Joe Biden drives a Hummer EV as he tours the General Motors 'Factory ZERO' electric vehicle assembly plant in Detroit, Michigan, U.S. November 17, 2021. REUTERS/Jonathan Ernst

Last month, Tesla (NASDAQ:TSLA) raised its Model 3 and Model Y prices, marking the automaker's fifth price increase in just a few months.

EV maker Rivian Automotive Inc has also raised prices on its pickup trucks by 20%, however, the company rolled back the hikes on vehicles booked before March 1 after facing backlash from customers.

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