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The carmakers pointed out that the war in Iran and resulting supply chain disruptions have driven substantial price hikes for a wide range of materials, including aluminum, plastics, and paints. The projected financial impact on the three companies could reach as high as $5 billion.
Mary Barra, CEO of GM, said the company has initiated expenditure reductions in an effort to counterbalance rising oil and commodity prices. According to GM, inflation in raw materials—encompassing logistics expenses and increased prices for DRAM chips—could lower the firm's operating profit by as much as $2 billion in 2026, compared with an earlier estimate of $1.5 billion in 2026.
Ford cautioned that its costs could rise by up to $2 billion, representing a $1 billion increase relative to the previous year. Stellantis, the manufacturer behind Fiat, Peugeot, and Chrysler vehicles, assesses that the effect of surging raw material prices on the sector this year will be roughly €1 billion ($1.2 billion).
source: ft.com
Mary Barra, CEO of GM, said the company has initiated expenditure reductions in an effort to counterbalance rising oil and commodity prices. According to GM, inflation in raw materials—encompassing logistics expenses and increased prices for DRAM chips—could lower the firm's operating profit by as much as $2 billion in 2026, compared with an earlier estimate of $1.5 billion in 2026.
Ford cautioned that its costs could rise by up to $2 billion, representing a $1 billion increase relative to the previous year. Stellantis, the manufacturer behind Fiat, Peugeot, and Chrysler vehicles, assesses that the effect of surging raw material prices on the sector this year will be roughly €1 billion ($1.2 billion).
source: ft.com
