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Wednesday, June 18, 2003

AK Steel settles with GM



The Associated Press

MIDDLETOWN - AK Steel Corp. and its largest customer, General Motors Corp., have ended their court fight over expenses from steel shipments.

GM, the world's largest automaker, filed suit in December in Michigan, and Middletown-based AK Steel filed a subsequent claim in Ohio. The companies dropped the litigation last month.

"We have agreed to resolve all of the issues without litigation," AK Steel spokesman Alan McCoy said Tuesday. He declined to disclose any details.

GM accounted for 20 percent of AK Steel's net sales in 2002, McCoy said.

"We continue to enjoy a very good relationship with GM," he said.

GM spokeswoman Renee Rashid-Merem confirmed that GM has withdrawn its litigation.

At issue was whether AK Steel can charge GM more for shipments under an existing contract because of increased costs the steel manufacturer says it has incurred for quality-related inspections requested by GM.

The sluggish economy and tariffs on foreign steel have prompted U.S. steel makers in recent months to ask for their first price increases in long-term contracts with automakers since the mid-1990s.

Steel is the primary material of most vehicles, accounting for about 55 percent of their weight.



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