Detroit carmakers have warned that the financial hit from higher commodity prices will rise to $5bn this year as the Middle East war strains the supply chains for materials from aluminium to plastics and paint.
The Big Three US carmakers, General Motors, Ford and Jeep-owner Stellantis, all flagged commodities inflation as they reported first-quarter earnings, pledging to compensate with greater cost discipline.
They could be forced to cut vehicle discounts and raise prices if the conflict drags on for more than six months given their slim margins, according to analysts.
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