Ford Motor Co’s European operations head reportedly sees no opportunities to pass on the cost of higher steel prices to consumers and will have to offset them with cost cuts.
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“The pressure on some commodities, particularly steel, is of concern to us both in terms of price and in one or two areas, availability,” Lewis Booth, president and chief executive of Ford Europe, told CNBC television at the Paris auto show on Thursday, according to Reuters.
“Obviously we’ll work to find other cost reductions to offset that because at the moment we don’t see any opportunity to price in the marketplace. The customer isn’t prepared to pay more for cars, regardless of what’s going on in the commodity end of the business,” he said.
He said Ford would continue to look for opportunities to share components and technologies across its car platforms to bring down the cost of parts that customers don’t see and that do not contribute to brand image, the report added.
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