Soaring metal costs could push new car prices even higher
CBSN
The cost of a new car in the U.S. could soon climb by thousands of dollars as some metals used by automakers to build cars, such as nickel and palladium, skyrocket in price.
Price increases will likely hit electric vehicles the hardest, according to S&P Global Mobility. That's because nickel is used to make batteries found in Tesla's Model Y, the Audi e-tron, the Mercedes EQS and other electric cars. For example, the price for an EQS, which starts at $102,000, is expected to jump as much as $11,000 due to higher metal prices, researchers at S&P Global Mobility said. Low inventory has already prompted dealers to raise prices on the cars they do have in stock.
Even higher car prices could appear at dealerships within three months depending on activity in commodities markets, one expert said. Vehicle costs are rising as inflation drives up the price of everything from food and rent to clothing and appliances. Consumer prices in February grew at an annual rate of 7.9%, the U.S. Labor Department said Thursday — the fastest pace of inflation since 1982.
