Steel vs. aluminum auto markets US vs. Europe

Fuel-price economics would favor aluminum cars in Europe, but European manufacturers must build for the US market where fuel prices favor steel. Illustrates how exporting drives materials selection.

What do they make cars out of in Europe — steel or aluminum? In general, steel. But at the price of fuel in Europe, aluminum should be cheaper. So why do they make steel cars? Because everybody wants to sell into the United States, and at the price of fuel in the United States, steel is cheaper. If the Europeans were only selling in their own market, all their automobiles would be aluminum. But then they couldn't sell in the United States — they'd be priced out of the market.