How Does the Metals Market Affect the Car Industry?

Stock Market Reverses Higher After Weak Open; Software Stocks Lead ...
Car companies use an array of different metals and metal alloys to make their cars more efficient, light, and safe. Aluminum is used in a variety of different car classes, but it is used mostly in sportier vehicles to save weight and increase performance. Steel is the most used alloy in the industry, and the chassis and engine block are where it really improves strength and stiffness. 

Since aluminum and iron are the two most abundant metals on earth, people should not worry about running out of these any time soon. Without these two metals and metal alloys, there would be no car. 

To put these metals in their vehicles, car companies have to buy their metals from somewhere else. The prices of these metals, which are commodities, fluctuate with the demand and supply of the said metal. If the cost of the alloy or metal rises, the price of the car which is made with the metal or metal alloy inherently rises, and vice versa with the fall of the cost. 

New tariffs on these metals and other metals that our country mines very little of, today, have increased the price of vehicles and has caused some American companies, in particular, General Motors, to lay off thousands of workers. These tariffs have also contributed to some sedans that General Motors makes to stop being made where all of those workers got laid off. According to an article written by Jeremy Scott Diamond and other writers from Bloomberg, the tariffs on these metals and car imports have decreased profits for Toyota and forced Volvo to increase car prices to compensate for the higher metal prices.  

We only hope that these higher prices from the tariffs don't drive the prices of cars through the roof. This may not affect the cost of the vehicle, though, because most of the cost amount of an automobile is due to its performance, brand name, and labor. 


  1. Great article Phil. I found a great article on composite material being used more and more.


  2. A greater amount of an underground assortment, Black Metal, starting with groups like Venom, Bathory, Hellhammer, and Celtic Frost, varied in its utilization of screaming vocals and whimsical melody structures that introduced incredibly dull topic, for example, Satanism.chromage de pieces llastique industriel

  3. I liked your work and the way in which you have shared this article here about Ferrite Cores for sale online in USA for us .It is a beneficial and helpful article for us. Thanks for sharing an article like this.

  4. Learn all want to|you should|you have to} know in regards to the latest Maryland sports betting news, as the state aims 우리카지노 아벤카지노 to launch online sports betting within the coming months. On our record, a glance at|try} Bovada for a mobile-optimized sports betting expertise. You can use one of the links above and download a casino app that you just liked.


Post a Comment