Cars Are About to Get a Lot More Expensive
The dynamic of rising costs and falling volumes can become problematic all too quickly.
Not exactly a satisfying splurge.
Photographer: Patrick T. Fallon/Bloomberg
Cars are about to get a lot more expensive. Manufacturers and drivers should brace themselves.
The price of everything that goes into a vehicle is going up. Raw materials — from the steel used for bodies, gear parts and frames to the plastic that winds up in bumpers and doors trims — account for a big portion of manufacturing costs. These are only growing. Add to that labor, logistics, the pressure to invest in new technologies and creeping inflation, and carmakers are seeing a very different landscape from the relatively profit-friendly market they have enjoyed over the past few months.