The Alliance for Automotive Innovation, representing major automakers, urges the White House to oppose Cleveland-Cliffs’ bid for U.S. Steel, fearing anti-competitive pricing for vehicles.
Such a merger would centralize 65 to 90% of vehicle steel under one entity, warns CEO John Bozzella.
President Biden insists on U.S. Steel remaining domestically owned amidst its acquisition talks with Nippon Steel. The alliance, including GM and Toyota, stresses the need to explore alternative outcomes rather than concentrating steel production under one company.
Implications for Electric Vehicle Manufacturing
The alliance highlights the risk of a combined U.S. Steel and Cleveland-Cliffs controlling all domestic electrical steel (e-steel) for EV production.
This consolidation could inflate steel prices, impacting the cost of finished vehicles, including EVs, for American consumers.
The group previously raised concerns about the tie-up’s effects on vehicle structural frames, surface panels, and EV motors, emphasizing the need for regulatory scrutiny from Congress, the FTC, and the DOJ.
