Car prices are getting higher

The current situation in the world, caused by the pandemic and the Russian invasion of Ukraine, affects all branches of the economy, including the automobile industry. The lack of chips, as well as problems in the supply chain around the world affect the production but also the growth of car prices. It can be said that it is not cheap to buy a new car at this time.

Stellantis CEO Carlos Tavares expressed his concern, saying that in the United States over 80 percent of customers are paying over the MSRP (Manufacturer’s Suggested Retail Price). He also stated that the average price of a car last year was almost $ 50,000, which is $ 6,000 more than in 2020.

In order to reduce the price of their vehicles, Stellantis is considering reducing marketing but also the franchise, which currently accounts for a third of the price of EVs.

The prices of metals most used in the automotive industry are currently at their highest: aluminum is over $ 3,500 per ton (up 27 percent), nickel is up 32 percent per ton ($ 26,000), and palladium is up 41 percent ($ 2,700) .