Automakers urge White Area to oppose US Metal sale to Cleveland-Cliffs By way of Reuters

By way of David Shepardson

WASHINGTON (Reuters) – A gaggle representing primary automakers on Friday suggested the White Area to oppose any effort by way of steelmaker Cleveland-Cliffs (NYSE:) to shop for rival U.S. Metal, caution {that a} deal may just lead to anti-competitive pricing for cars.

“A consolidation of the 2 firms would additionally position 65 to 90% of metallic utilized in cars underneath the keep watch over of a unmarried corporate,” Alliance for Automobile Innovation CEO John Bozzella stated in a letter, which was once first reported by way of Reuters.

President Joe Biden stated previous this month that U.S. Metal, which has agreed to be purchased by way of Japan’s Nippon Metal for $14.9 billion, will have to stay a domestically-owned U.S. company. Cleveland-Cliffs has stated it might imagine any other bid for U.S. Metal if the maintain Nippon Metal falls aside.

“If the management has issues in regards to the Nippon Metal deal, it will have to severely imagine choice results,” stated the letter from the crowd, which represents Common Motors (NYSE:), Toyota Motor (NYSE:) Corp, Volkswagen (ETR:), Hyundai (OTC:) and others. “One choice that are meant to no longer be at the desk is an association that creates a marketplace focus of home metallic manufacturing in one corporate.”

The White Area, Cleveland-Cliffs and U.S. Metal didn’t instantly remark at the letter.

A mix of U.S. Metal and Cleveland-Cliffs would keep watch over “100% of the home electric metallic (e-steel) wanted for electrical automobile (EV) motors and EV manufacturing,” the automaker staff stated in its letter.

It warned {that a} deal may just “force up the price of each metallic and e-steel, and in the long run build up the price of completed cars (together with EVs) for American shoppers.”

The crowd wrote Congress, the Federal Business Fee and U.S. Justice Division in October to lift its issues a couple of tie-up, bringing up issues about metallic used to supply automobile structural frames, car floor panels like doorways, hoods and fenders, and EV motors.