Car prices will likely go up, reflecting the sharp increase in raw material costs, Valeo CEO Thierry Morin said.
“Rising raw material costs will change the face of the world and we have to adapt,” Morin said. “The final market has not paid for it yet.”
Sofar, strong automaker competition and excess manufacturing capacity have kept car prices down. But this is likely to change, Morin said.
He suggested that better capacity use could help offset the higher cost of raw material costs.
“We all know that factories are better when running at 90 percent of capacity, as opposed to 70 percent, so volume is a tremendous potential solution,” Morin said.
