Metaldyne Urges President to Terminate Steel Tariffs

$680 Million Decrease in Returns on Capital and Manufacturing Labor

PLYMOUTH, Mich., Sept. 26 -- Metaldyne today announced that it is urging President Bush to terminate the Section 201 steel tariffs immediately. The announcement is in response to a recent International Trade Commission (ITC) study that shows the negative impact of the steel tariffs on automotive suppliers, including a $680 million decrease in return on capital and manufacturing labor since March 2002.

"We're hopeful that the ITC study will prove the catalyst for the President to terminate the steel tariffs immediately," says Tim Leuliette, chairman, president and CEO, Metaldyne. "Since the inception of the tariffs, we have experienced quality issues, and most importantly, price increases on steel ranging from 10 to 50 percent. These price increases can't be passed to our customers, creating an open door to our foreign competitors who are able to purchase steel and sell components at lower global prices. As a result, we have begun sourcing raw steel and semi-finished components from offshore countries, reducing our capital expenditure in North America, and most importantly, reducing our U.S. workforce."

The ITC report also documents the disproportionately serious effects the tariffs have had on the auto industry, including concerns about contract abrogation, price spikes, disruption of supply and steel quality concerns. The 332 investigation reported that 74% of auto suppliers reported changes in contract prices for steel; 55% of these were the only factor in the change in steel prices.*

"The future of many American manufacturing jobs, especially in the automotive supplier industry, depend on the President to make the right decision," said Leuliette.

About Metaldyne

Metaldyne is a leading global designer and supplier of metal-based components, assemblies and modules for transportation-related powertrain and chassis applications including engine, transmission/transfer case, wheel-end and suspension, axle and driveline, and noise and vibration control products to the motor vehicle industry. The company serves the automotive segment through its Chassis, Driveline & Transmission, and Engine Group.

Headquartered in Plymouth, Mich., Metaldyne has annual revenues of $1.5 billion. The company employs over 7,250 employees at over 50 facilities in 11 countries.

For more information, please visit http://www.metaldyne.com/ .

* Information contained in the 9/23/03 press release issued by the Motor & Equipment Manufacturers Association (MEMA).