Global Fastener News

British Auto Suppliers Threaten Shutdown Over Steel

Jason Sandefur

British fastener manufacturers and other auto suppliers warned that rising global steel prices may force them to stop supplying parts unless car makers agree to accept price increases, according to the Birmingham Post & Mail. Land Rover and Jaguar refused a request from their suppliers to pay higher rates, while Ford, BMW and Toyota have said they will not accept any increases.
Earlier this month the European Industrial Fasteners Institute warned that suppliers would be unable to buy raw materials in time unless manufacturers accept higher prices. The situation threatens to shut down car production in the UK, a move analysts say could create a ripple affect throughout Europe.
“Not a single major automotive customer has agreed to pay anything more to meet the steel costs,”” Bert Shaw, managing director of Armstrong Fasteners, told the Post & Mail. “We started talking to them in March and then took the increases in April and now we are here absorbing the costs. We have an automotive industry in which no-one will listen to us. The only resort we have is to threaten to stop supplies.”” �2004 FastenerNews.com