In the event that the crisis in the Middle East were to persist, a possible increase in list prices of +5% would increase the cost of a new car by an average of around 1,450 euros, but the costs of repairs, spare parts and car insurance policies would also increase.
This was stated by Federcarrozzieri, the association of Italian body shops. «The greatest danger for the sector is represented by the rise in oil, gas and energy prices, but also and above all by aluminium, a metal present in bodywork and components and with which on average 15% of a modern car is made. – explains the president Davide Galli – The blockade on the transit of ships, together with the sudden growth in aluminum prices, which have risen to the highest levels of the last 4 years up to almost 3,500 dollars per ton, therefore risks having repercussions on the automotive sector, also undermined by the increases in energy and gas prices which aggravate production costs for both cars and spare parts”. Furthermore, the increase in oil prices impacts the costs of paints and solvents derived from oil, but also on the drying of paints, primers and fillers in ovens powered by oil in liquid or gaseous form, or by electricity. According to the calculations of Federcarrozzieri, in the hypothesis in which the crisis in the Middle East were to persist, «a possible increase in list prices of +5% would increase the cost of a new car on average by around 1,450 euros, but the costs of repairs would also increase, due to the combined effect of the high energy costs borne by body shops and the increases in the cost of spare parts. More expensive repairs which would also have their effects felt on car insurance rates, as a consequence of the increase in costs for insurance companies”, concludes Federcarrozzieri.