How Car Makers Are Benefitting From Lower Oil Prices

The video discusses the impact of fluctuating oil and steel prices on material costs in vehicle manufacturing. It highlights how lower oil prices reduce plastic costs, which constitute a significant portion of a vehicle's weight. Steel, being a major component, also affects material costs significantly. Despite these reductions, consumers may not see immediate benefits as automakers often retain savings. The video explains the dynamics of material purchasing and the potential future benefits for automakers.

How do lower oil prices affect the cost of materials used in vehicle manufacturing?

• They increase the cost of steel.

• They reduce the cost of plastics.

• They have no impact on material costs.

• They increase the cost of all materials.

What percentage of a vehicle's weight is typically made up of plastic?

• 5-10%

• 15-20%

• 10-15%

• 20-25%

What is the approximate percentage of steel in the total material costs for an automaker?

• 50%

• 30%

• 40%

• 60%

How have steel prices changed since their peak two years ago?

• Increased by 20%

• Increased by 10%

• Decreased by 20%

• Remained the same

Why might consumers not see the benefits of reduced material costs?

• Consumers are always the first to benefit from cost reductions.

• Automakers pass on all savings to consumers.

• Material prices are stable and predictable.

• Automakers prefer to retain savings due to fluctuating material prices.