Big increases in the price of raw materials and transport means that the world's biggest steel producer, ArcelorMittal, says it wants to raise prices to car makers by as much as 60%. Company vice president Jean-Luc Maurange, told the German magazine Auto Motor und Sport, "The imbalance between supply and demand is long-term - that is why the market price of steel has doubled in a year, rising from €600 to €1,200 a ton."

ArcelorMittal's supplies almost a quarter of steel used by German carmakers and has a near 50% market share in the rest of the European automotive sector. The massive cost rises mean that carmakers now face having to increase their own prices, despite the slow car sales market.