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

(Reuters) – General Motors Co 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 on Wednesday.

Last month, Tesla 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.

(Reporting by Kannaki Deka in Bengaluru; Editing by Vinay Dwivedi)