On Friday, a coalition representing prominent automobile manufacturers urged the White House to resist any attempt by Cleveland-Cliffs, a steelmaker, to acquire its rival U.S. Steel. They cautioned that such a merger could lead to unfair pricing practices in the vehicle market. John Bozzella, the CEO of the Alliance for Automotive Innovation, expressed concerns in a letter, originally reported by Reuters, stating that the consolidation would grant a single company control over 65 to 90% of the steel utilized in vehicles.
Earlier this month, President Joe Biden emphasized the importance of U.S. Steel remaining under domestic ownership, despite its agreement to be acquired by Japan's Nippon Steel for $14.9 billion. Cleveland-Cliffs has expressed readiness to pursue another bid for U.S. Steel should the deal with Nippon Steel fall through.
In a letter from the coalition, which includes representatives from General Motors, Toyota Motor Corp, Volkswagen, Hyundai, and others, it was stated, "If the administration harbors concerns regarding the Nippon Steel deal, it should explore alternative scenarios seriously." The group emphasized that an outcome involving a single company dominating domestic steel production should not be considered as a viable option.
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