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GM CFO says U.S. auto prices could rise

U.S. automobile prices could rise significantly in the near future because of industry restructuring, rising raw materials and regulatory costs, General Motors Corp.'s chief financial officer said Tuesday.
/ Source: The Associated Press

U.S. automobile prices could rise significantly in the near future because of industry restructuring, rising raw materials and regulatory costs, General Motors Corp.'s chief financial officer said Tuesday.

Fritz Henderson said the industry has less manufacturing capacity than in the past and therefore less pressure to sell vehicles cheaply just to move inventory.

It also faces higher raw materials costs, rising technology costs and increased costs from fuel economy and other government regulations, he said.

While the U.S. market still is competitive, "you could potentially see a significant change from what we've seen in the last eight or 10 years," Henderson said during a speech to the Automotive Press Association in Detroit.