GM Cautious on Platinum Switch Even as Palladium Hits Record

Palladium’s surge to a record has intensified talk among analysts that carmakers will look to replace it with cheaper platinum for use in pollution-control devices. The auto industry’s answer: Not so fast.

Palladium, mainly used to control emissions from gasoline engines, is trading near the highest relative to platinum since 2001 as consumers move away from diesel vehicles, where platinum is more widely used. Tensions between the U.S. and Russia, a top supplier, and forecasts for shortages are also lifting palladium.