Auto Industry Fights for Affordable Steel

Washington DC October 2, 2006; The AIADA newsletter reported that General Motors, Ford, Chrysler, Toyota, Honda and Nissan have joined together to fight for an end to duties on high value steel – the first time the six automakers have banded in support of a major trade issue, reports Automotive News.

A typical vehicle carries about 2,600 pounds of steel, including the costly sheet metal for body panels and cheaper steel for stamped components.

GM is currently the world's largest consumer of automotive steel, buying 10 million tons if steel annually. The U.S. first imposed orders on corrosion resistant steel in 1993; they were renewed six years ago as part of the restructuring of the steel industry.

In April 2005, the ITC ruled that the U.S. could maintain its tariffs on steel imports from Japan, Russia and Brazil after an independent trade panel found that removing the duties would harm the U.S. steel industry.

In a letter to Republican House Speaker Dennis Hastert dated Sept. 14, the purchasing chiefs from the six automakers contend that the problem no longer exists. "If you look at the (healthy) condition of the steel industry, it is hard to argue for the tariffs to be in place," Ford's VP for Global Purchasing Tony Brown said.

AIADA President Cody Lusk on Friday also submitted a letter to the U.S. International Trade Commission (ITC) respectfully requesting the end of all current antidumping (AD) and countervailing duty (CVD) orders on certain corrosion resistant carbon steel flat products. "Continuing these duties will negatively impact the automotive manufacturing sector – the primary consumer of corrosion resistant steel – and ultimately, American consumers who are forced to pay higher retail prices as a result," Lusk said.