GM: Iran war causing cost increases, but pricey vehicles continue to sell

A Cadillac all-electric 2025 Escalade IQ luxury SUV is displayed during press day of the North American International Auto Show in Detroit, Michigan, September 14, 2023. Rebecca Cook | Reuters DETROIT — General Motors on Tuesday said the Iran war is causing cost increases to its business, but inflated consumer expenses such as higher gas prices haven't deterred buyers from spending on pricey vehicles. GM CEO Mary Barra said the Detroit automaker continues to monitor any change in customer spending but, so far, the company's vehicle mix has remained healthy. GM said it had an $52,000 average transaction price for vehicles during the first quarter, which was in line with last year. The average new vehicle transaction price across the industry for March, the most recent data available , was $49,275, according to Cox Automotive. "I think the biggest variable that we're looking at is how long does the conflict last and what does it cause from a cost perspective across logistics, supply chain, and if it ends up having any impact on a shift in mix, but, to date, we really haven't seen that," Barra said during the company's first-quarter earnings call Tuesday with investors. Barra's comments follow consumer confidence plunging to a record low in April as fears mounted over rising energy prices and the broader impact of the Iran war, according to a University of Michigan survey earlier this month. …