GM's price raise plans: Suicide?

Taking a page from the greedy oil companies that continue to rake in billions of dollars in profit while the average joe is having to think about ways to get to work the next day and pay for gas, General Motors announced recently that in order to make up for their already losing sales number as well as increased costs in steel and commodity that it would be raising costs of new vehicles for 2009 by 3.5 percent.

Seriously...No, stop laughing, that was not a joke.

In an already super tough market that has yielded staffing cuts as well as production slow downs, GM is riding the faith of trying to spark the market at the end of the quarter by having a proverbial fire sale to get huge inventories of 2008 models off their lots by offering zero-percent financing for up to 72 months as well as other things. But will this really make up for the price raise? And what if the gas crisis continues as consumers scurry to get smaller cars--while GM continues to hold on to the Hummer Brand?

It doesn't make a lot of sense in terms of gaining consumer confidence, and it smacks of basically forcing the hand of the people buying their cars in a time where it should be in fact a buyers market and the focus should be on gaining back loyalty. This is a crock. I guess it's better than cutting jobs on one side of the coin, but is it the solution that is really needed, or is this just a lazy way to try and grab some dollars?

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GM's price raise plans: Suicide?

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