Cars keep getting pricier and the commodity boom makes it worse

Worries ahead: Autonomous robots assemble an X model SUV at the BMW manufacturing facility in South Carolina. BMW expects US$1.2bil headwinds from rising commodity prices for the year. ─ Reuters

MANCHESTER: Cars are back in vogue courtesy of the pandemic. They’re also getting more expensive, thanks in part to surging commodity prices.

Many of the essential ingredients for automakers, such as copper, steel and aluminum, are hitting or approaching record highs this year as the lagging supply can’t keep up with stimulus-driven demand. The Bloomberg Commodity Spot Index jumped to its highest since 2011, with metals up 21% so far this year.