Automakers Oppose Cleveland-Cliffs’ Proposed Acquisition of U.S. Steel

A group representing major automakers on Tuesday said the industry opposes steelmaker Cleveland-Cliffs’ proposed acquisition of U.S. Steel, saying it would increase auto industry costs and slow electric vehicle sales.

The Alliance for Automotive Innovation, representing General Motors, Toyota Motor, Volkswagen, Hyundai and other major automakers, in a letter to Congress and U.S. regulators cited the combined steel companies’ dominant market share for steel used to produce vehicle structural frames, for automotive surface panels like doors, hoods and fenders, as well as steel used for electric vehicle (EV) motors.

The letter from Alliance for Automotive Innovation CEO John Bozzella said a merger would “increase costs across the industry for both materials and finished vehicles,” and noted 100% of the metal for EV motors known as e-steel would be concentrated in the combined company.

Read the source article at Yahoo Finance