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Lower commodities prices boost SUV push

PA’s Thomas Göttle, an automotive expert, is quoted in an article in the Financial Times on commodity prices and the implications for car maker profits.

The article explains that the slowing Chinese economic growth has been good news in terms of cost for car markers. 

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According to PA, raw materials account for 20 to 25 per cent of a car’s selling price, of which half comes from cost of steel. The example given explains that if a car is sold for €15,000, the total material cost would be about €3,000.

Thomas goes on to say: “Quite a big portion of a cost of a car is driven and influenced by commodities.”

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