GM Raises U.S. Auto Prices,

DETROIT, Nov 8, 2006; Reuters reported that General Motors Corp. said on Wednesday that it has raised prices on about one-third of its 2007 model-year vehicles in the United States to cover increased costs for steel and other commodities.

The price increases range from $60 to $425 per vehicle, GM spokesman John McDonald said, adding that the increase averages to about 0.5 percent per vehicle.

"What we are trying to do is to recover a portion of our increased costs -- things like steel, materials and other commodities that go into our products," he said.

GM said 239 of its 681 vehicle models and its variants will see price increases.

Some models such as the redesigned Chevy Silverado pickup, new Saturn Aura sedan and Chevy Aveo compact car are excluded from the price hikes, GM said.

Actual transaction prices for vehicles change every month depending on the cash rebates and other consumer incentives on a particular model.

GM has warned that it faces a tough U.S. market and record-high commodity costs despite progress made under a sweeping restructuring.

Increased costs for commodities, including steel and plastics, that go into the production of a vehicle have also made it difficult for GM and its cross-town rivals to wrangle price cuts from suppliers.

GM, which lost $10.6 billion in 2005, is in the midst of closing 12 plants and eliminating 30,000 jobs in an effort to return its operations to profitability.