Chrysler trading excess steel with suppliers

Chrysler trading excess steel with suppliers

According to reports from the industry, one of major three auto makers, Chrysler is planning to sell leftover scrap metal from car production to its own suppliers in order to secure its steel requirements. In consequence of latest developments such as steel mills hiking prices as well as surcharges constantly due to insatiable steel demand from China, creating shortages and improving raw material costs, steel consuming companies started to seek ways to get over this current situation with minimum damage. Chrysler, US arm of major German auto maker DaimlerChrysler Corp., is aiming to keep continuity of its steel supplies through sales back to its suppliers rather than selling leftover scrap at auction. Meanwhile it is reported that General Motors, among three major auto makers, may also decide to sell company's own scrap metal to suppliers in order to ease the pricing pressure and not to reflect overcharged prices to the end users.