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GM estimates $1 billion dollar increase in material costs

$1 billion

That's General Motors' estimate for the increase in its 2018 material costs.

Automakers and suppliers are warily watching material costs climb. Reasons include higher oil costs, inflation and tighter supplies. But the industry also is absorbing the impact of tariffs — 25 percent on certain steel products and 10 percent on aluminum entering the U.S.

GM's $1 billion estimate is double its earlier forecast. "The challenge has been greater than anticipated," CFO Chuck Stevens told analysts during GM's second-quarter earnings call. He described the materials market as "uncertain and volatile."

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