General Motors Corp. is suing
Providence-based Textron Inc. and Steel Dynamics Inc., which the world’s largest
automaker accuses of overcharging for steel and steel auto parts, Bloomberg reported.
The defendants violated contracts by charging extra to
compensate for rising steel prices, General Motors spokesman Tom
Hill said. Both companies have threatened to stop shipments if
they aren’t paid, Hill said.
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“We are paying these premiums to the already agreed upon
prices under protest so we don’t have any disruption of supply
and assembly,” Hill said. “General Motors isn’t telling parts
suppliers that price increases are alright.”
A halt in steel deliveries from Steel Dynamics could cost
Detroit-based General Motors “millions of dollars a day” and
force it to shut down assembly plants, according to the lawsuit
filed March 18 in Oakland County Court in Michigan. General
Motors expects to buy $24 million in steel from the Fort Wayne,
Indiana-based supplier this year, the suit said. The case against
Textron, filed separately, wasn’t immediately available, Bloomberg said.
General Motors is the only customer disputing the price
increases, said Fred Warner, a spokesman for Steel Dynamics, who
declined to comment further. Tim Weir, spokesman for Textron declined to comment.
The Wall Street Journal reported the lawsuits earlier.
Bloomberg News
