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GM: Iran war causing cost increases, but pricey vehicles ... - CNBC
A Cadillac all-electric 2025 Escalade IQ luxury SUV is displayed during press day of the North American International Auto Show in Detroit, Michigan, September 14, 2023.Rebecca Cook | ReutersDETROIT — General Motors on Tuesday said the Iran war is causing cost increases to its business, but inflated consumer expenses such as higher gas prices haven't deterred buyers from spending on pricey vehicles.GM CEO Mary Barra said the Detroit automaker continues to monitor any change in customer spending but, so far, the company's vehicle mix has remained healthy. GM said it had an $52,000 average transaction price for vehicles during the first quarter, which was in line with last year. The average new vehicle transaction price across the industry for March, the most recent data available, was $49,275, according to Cox Automotive."I think the biggest variable that we're looking at is how long does the conflict last and what does it cause from a cost perspective across logistics, supply chain, and if it ends up having any impact on a shift in mix, but, to date, we really haven't seen that," Barra said during the company's first-quarter earnings call Tuesday with investors.Barra's comments follow consumer confidence plunging to a record low in April as fears mounted over rising energy prices and the broader impact of the Iran war, according to a University of Michigan survey earlier this month.They also come after the company reported a 9.7% decline in first-quarter sales compared with an unseasonably high March 2025. GM also said it's dealing with tighter inventories, specifically on its full-size pickup trucks, as the company retooled for updates to the vehicles for later this year.Barra said if there are major shifts, including a more apparent move into less expensive or all-electric vehicles, that the company feels it's well positioned to meet those needs as well.watch nowGM CFO Paul Jacobson and Barra said the Detroit automaker is continuing to offset higher costs as best as it can through warranty improvements, cost efficiencies and potentially by deferring some hiring."While our operating performance remains strong, as reflected in our excellent first-quarter results, the war in Iran has raised our costs and its duration remains uncertain," Barra said. "We are working to offset these cost pressures by reducing spending in other areas and by continuing to find efficiencies across the business."The GM executives specifically singled out rising energy and logistic...
Vehicle prices expected to rise due to exchange rate and tax ...
Prasad Manange, the President of the Vehicle Importers’ Association of Sri Lanka (VIASL) has warned that vehicle prices are expected to increase in the near future due to the continued depreciation of the Sri Lankan Rupee against the US Dollar. Manange stated that the rupee depreciation significantly impacted the cost of importing vehicles, leading to higher prices. He also pointed out that the recent hike in the Social Security Contribution Levy (SSCL) by 2.5% starting from May will further contribute to the price increase. “The government expects a substantial income from vehicle imports, and if my calculations are correct, they are looking at around Rs. 700 billion from this source. We contribute significantly to government revenue, particularly through the import of used vehicles. For every dollar, the government is hoping to earn about US$1.5, but for the vehicles we import, taxes are ranging from US$2 to US$2.5 per dollar. In the case of some electric vehicles, due to tax issues, the income per dollar is even lower,” Manange said. He emphasized that the government’s earnings from used vehicles are higher than anticipated, providing a financial boost to the state. However, Prasad Manange called for a comprehensive review of the tax structure, urging the government to assess the situation more closely. The President of the Vehicle Importers’ Association of Sri Lanka also stated that with the tax hike and the ongoing fluctuations in the exchange rate, an increase in vehicle prices is inevitable in the coming months.
Personal Consumption Expenditures Price Index - Bureau of Economic Analysis
Personal Consumption Expenditures Price Index The PCE price index, released each month in the Personal Income and Outlays report, reflects changes in the prices of goods and services purchased by consumers in the United States. Quarterly and annual data are included in the GDP release.
How Will U.S. Tariffs Impact Prices? Here's What 40+ Brands Are Saying
Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products."
