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USA: Delphi cannot afford US steel - FT

By just-auto.com editorial team | 18 October 2002

Automotive Newswire from BRG Townsend, Inc. reports that Delphi Corp. has warned its suppliers that it is moving its steel contracts offshore because steel made in the US is too expensive. Citing the Financial Times as source, the report says that Delphi reported that its annual steel tab runs about $1 billion and it was buying some 98% of its steel from US companies.

The company notes that it was shielded from price increases for steel because of contracts, but as they expire the company is looking at prices in the US that have risen 20% higher.

BRG adds that Delphi didn't say where it would go to buy steel.