Rising steel prices are taking their toll in North America and Europe as automakers and suppliers suffer from increased demand for steel in China and decreased steel-making capacity around the world.
It's the law of supply and demand.
An average automobile uses about $600 worth of steel and current estimates are that rising steel prices -- especially prices for the specialty steels used in body panels -- will add more than $100 to the cost of a new car or truck this year.
But that doesn't mean suppliers can pass along their cost increases to automakers or that automakers can pass them on to consumers.
As a result, some smaller suppliers are being forced into bankruptcy.
With rebates averaging more than $5,000 per vehicle, it's hard to see how another $100 would make much of a difference. But it does.