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Article: Suddenly busy suppliers face steel shortages.(NEWS)
- Article from:
- Automotive News
- Article date:
- August 31, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Robert Sherefkin and Ryan Beene
The Detroit 3 have hit a bump in their ability to boost production: steel shortages.
Although steel middlemen are rebuilding stocks as mills resume output, auto suppliers are scrambling for steel. Shortages could slow the ramp-up at assembly plants for several weeks.
"Steel consumers got very comfortable with short lead times and readily available material, said a Tier 1 executive who had to hunt for steel this month for two stamping subsuppliers.
"Now we are seeing lead times stretch out to more traditional lead times, and the steel mills are slow to bring capacity back so they can prop up ...