Carmakers face soaring metal costs
Russia’s invasion of Ukraine is ramping up the price of metals used in cars, from aluminium in the bodywork to palladium in catalytic converters to the high-grade nickel in electric vehicle batteries, and drivers are likely to foot the bill. While metals have not been the target of western sanctions yet, some shippers and auto parts suppliers are already steering clear of Russian goods, putting more pressure on carmakers already reeling from a chip shortage and higher energy prices. “So what happens from here?” asked Carlos Tavares, Chief Executive of Stellantis, the world’s fourth-biggest automaker, when speaking to reporters last week. “First, what happens is that we have an escalation of cost that comes from raw materials and energy that is going to put more pressure on the business model,” he said.
Published in The Express Tribune, March 9th, 2022.
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