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withdrawn its litigation.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