General Motors has raised the price of its Hummer EV pickup truck by US$6,250, citing a need to “mitigate higher commodity and shipping costs” as the demand for cars and trucks continues to increase. Originally, the Hummer EV pickup was priced at about US$80,000 to US$110,000.
The Hummer EV was first debuted to consumers in 2020 as part of the automaker’s electrification strategy, and would reportedly be followed by the launch of a Hummer SUV in 2023. By the end of last year, however, only one Hummer EV had been delivered to its reservation holder. To date, there are over 75,000 reservations for the highly anticipated vehicle, which boasts unique features such as the ability to “crab walk” sideways.
Last week, with news of the upcoming price hike, GMC announced new customizations available for Hummer EV 3x reservation holders, which allowed them to select their desired add-ons and packages before placing their official order. The pricing for these options were added on top of the base MSRP. Moving forward, any Hummer EV orders placed will be impacted by the significant price increase.
According to GM Chief Financial officer Paul Jacobson, GM has been able to offset US$5 billion in higher supply chain costs by raising prices and cutting expenses. While this particular price increase may inspire shock among consumers, it speaks to an ongoing trend across the industry. Just last month, Tesla raised the price of its Model 3 and Model Y, marking the company’s fifth price increase in the span of a few months. Moreover, Rivian also raised prices on its pickup trucks by 20 per cent, although this decision was later modified to protect reservation holders due to backlash from outraged customers.