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Tags: ukraine war | car EV and gas prices

Lauren Fix, The Car Coach: Ukraine War Will Hit Auto, EV & Gas Prices Hard

gas prices
(AP)

Lauren Fix By Friday, 11 March 2022 09:55 AM EST Current | Bio | Archive

President Joe Biden announced that the U.S. will ban Russian oil imports due to Putin's Invasion of Ukraine. This will drastically impact you at the pump, and impede your ability to get vehicles and parts.

The price of gasoline was already rising before Putin began his military buildup on Ukrainian border. The increased gas prices are now the highest since the 2008 recession. Everyone is impacted by higher gas prices, even if you own an electric car.

Electric vehicles are even more dependent on microchips and rare earth metals than traditional vehicles, making the industry supply-chain challenges of the past two years particularly costly for EVs. These issues should eventually be resolved, but the current state of the world is not friendly to EV production, cutting profits and forcing price hikes.

Powder Keg

All of these factors are creating a powder keg that you need to now about.

Let’s start with gasoline. While we are experiencing high gas prices at the gas stations across the country, Joe Biden said he is moving forward with a ban on Russian oil imports, knowing the United States produces more oil than all European countries combined. That means Russian oil will no longer be acceptable at U.S. ports, and the American people will deal another powerful blow.

There is a 45-day wind-down period as we take deliver of the last of our purchases of oil. Russian imports make up about 7% of all U.S. oil imports. That may not seem like a lot, but big companies like BP, Shell, and Exxon had already cut ties with Russia. Because crude oil is a global commodity, we can expect to see high gas prices for some time.

It’s possible that the Organization of the Petroleum Exporting Countries (OPEC) could decide to increase supply, but there has been no indication from such countries that they will produce and export more oil to replace Russia’s oil. This will cost everyone at the pump.

Russia's invasion of Ukraine is ramping up the price of metals used in cars, from aluminum in the bodywork, to palladium in catalytic converters, to the high-grade nickel in electric vehicle batteries, and this means increased car prices across the board.

Russia Sanctions Another Blow to Detroit

Some auto parts suppliers are already steering clear of Russian goods, putting more pressure on carmakers already reeling from a chip shortage and higher energy prices. Aluminum and palladium both hit record highs on Monday while nickel, which is also used to make stainless steel, crossed the $100,000-a-ton level for the first time ever. Consumers are already paying for the chip shortage as it has pushed car inventories down and prices up - even before higher metals prices are added in.

Batteries are one the most expensive components in EV’s and automakers have been hoping they will become cheaper so they can offer more affordable electric cars. The London Metal Exchange (LME) suspended trading of nickel, the key critical mineral that is needed for electric vehicle manufacturing, after prices surged to record highs. The price of the commodity surged more than 100%, because Russia mines about 10% of the world’s nickel supply. This will not help lower costs and it will reduce deliveries to dealers.

The crisis could worsen rising inflation and propel already record-high vehicle prices even higher.

Even Elon Musk calls for increased nuclear power, oil and gas production. He stated, "Extraordinary times demand extraordinary measures." I agree!

The Bottom Line

So what’s the answer? The war against fossil fuels has been going on for years. President Obama wanted gas prices at $10/gallon to promote a push toward electric cars. President Trump reduced gas prices and made the U.S. energy independent.

Now we are being held hostage by Venezuela, the Middle East, OPEC and OPEC+. We need to return to producing our own energy for our security and to lower gas prices for all Americans.

For every increase of one dollar per gallon equals a penalty of $500 per driver on their budgets. Since Biden took office, he stopped energy independence, the result is an increase of $2500 per driver. Americans can’t afford this increase, they can’t afford a new electric car payments with increased insurance fees which the government thinks will save us money. Do the math - it will cost more to buy a new car - if you can get one.

Additional articles on our website https://www.CarCoachReports.com

"LAUREN FIX'S GUIDE TO LOVING YOUR CAR” Book - https://amzn.to/3ifDi3j

Total Car Score Podcast ► Hosts: Lauren Fix, Karl Brauer and Javier Mota. https://www.revolverpodcasts.com/shows/total-car-score/

_______________

Lauren Fix, The Car Coach® is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and safety issues for both the auto industry and consumers. Her analysis is honest and straightforward.

Lauren is the National Automotive Correspondent for Newsmax TV, a conservative news net carried in 23 countries and in over 35 million U.S. cable/satellite homes. She is also The Weather Channel and Inside Edition’s auto expert. Lauren Fix serves as a juror for the esteemed North American Car & Truck of the Year Awards (NACTOY).

Lauren is The Car Coach columnist for Parade Magazine and eBay Motors and writes a weekly column. She also appears weekly on USA Radio’s DayBreak USA.
Lauren is the president and founder of Automotive Aspects, Inc., a consulting firm with a wide range of multi-media services, including media consulting, broadcast messaging strategy, public relations and television production.

Lauren is the author of three books: most recently, Lauren Fix’s Guide To Loving Your Car with St. Martins Press, Driving Ambitions: A Complete Guide to Amateur Auto Racing, and The Performance Tire and Wheel Handbook.

Lauren’s broadcast experience includes Oprah, Live! With Regis and Kelly, The View, TODAY, 20/20, The Early Show, CNN, FOX News, FOX Business, MSNBC, HLN, TBS Makeover and a Movie, Inside Edition, ESPN, TBS, Discovery, Speed and NPR, to name a few. Lauren previously hosted four seasons of Talk 2 DIY Automotive on the Do-It-Yourself Network (DIY), was the National Automotive Correspondent for Time Warner Cable and hosted Female Driven on Lifetime TV.
Lauren’s articles and advice have appeared in USA Today, Good Housekeeping, Redbook, eBay, Woman’s World, Esquire, First for Women, InTouch and Self. She has also contributed content to Motor Trend, Truck Trend, Hot Rod, Car Craft and many other automotive publications.

Lauren is a member of the Society of Automotive Engineers (SAE), the Society of Automotive Analysts (SAA) and is an ASE (Automotive Service Excellence) certified technician. She inherited her love of all things automotive from her father, who owned a brake remanufacturing business and worked for many U.S. manufacturers. Lauren has been fixing, restoring and racing cars since the age of ten. She has been advising drivers almost all her life.

In addition to being a leader in positive consumer awareness and the automotive industry, Lauren is often asked to speak to groups around the world about her success in marketing, motivation, entrepreneurship, parenting and other lifestyle topics.

Lauren was named the 2015 WIN Award, 2013 SEMA Business Network “Mentor of The Year”; SEMA Business Network 2012 Woman of the Year; and awarded various Car Care Council “Automotive Communications Awards” in 2012, 2013 and 2014. Past awards include 2008 Automotive Woman Of The Year and 2010 Woman of Distinction – Entrepreneur winner. Lauren Fix was inducted into the National Women and Transportation Hall of Fame in 2009 – a very high honor for a hard working automotive professional.


 

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LaurenFix
President Joe Biden announced that the U.S. will ban Russian oil imports due to Putin's Invasion of Ukraine. This will drastically impact you at the pump, and impede your ability to get vehicles and parts.
ukraine war, car EV and gas prices
1261
2022-55-11
Friday, 11 March 2022 09:55 AM
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