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Suppliers steel for disaster; Companies: Price spike may bring shutdowns.

Publication: Crain's Detroit Business
Publication Date: 15-MAR-04
Format: Online - approximately 770 words
Delivery: Immediate Online Access

Article Excerpt
Byline: Terry Kosdrosky

Top-tier auto suppliers are worried the steel price crisis will soon erode their own supply base and cause industrywide production shutdowns.

Smaller suppliers of stampings and other small metal assemblies operate on thin margins as it is. With many paying 30 percent-50 percent more in raw material costs than they were six months ago, it won't take long for many to run into a credit crunch, CEOs and industry analysts say.

"We're headed for a cliff, and there are going to be shutdowns,'' said Larry Denton, CEO of Rochester Hills-based Dura Automotive Systems Inc. "With small parts suppliers, you can only squeeze them so long. This is the only story in...

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