Rising Raw Material Prices Hurt Carmakers

German carmakers have been finding it difficult to maintain their earnings owing to rising raw material prices, particularly steel. At a recent steel conference in Wiesbaden, the German Association of the Automotive Industry (VDA) revealed that the prices of raw materials have risen rapidly since the beginning of 2005. Prices of hot wide strip steel have risen by 41%, aluminium prices have gone up by 55% and copper has escalated by a massive 174%.

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