AK Steel Has No Intention of Suspending GM Shipments
Middletown, OH - AK Steel said in response to published
news reports about litigation between AK Steel and General Motors (GM),
that it has no intention of suspending shipments of steel products to
GM. AK Steel confirmed that it is engaged in litigation over interpretation
of terms of the supply contract between it and GM. That litigation involves
a claim by AK Steel that GM has failed to satisfy its obligation under
the parties' contract to reimburse AK Steel for its increased costs attributable
to changes by GM in the scope of work covered by contract.
Reports that have suggested that AK Steel is seeking in that litigation,
or otherwise, to suspend shipments are incorrect. To the contrary, in
a letter AK Steel sent to GM prior to commencing its litigation, AK Steel
stated, "we do not intend to suspend our performance under the contract
as a result of our disagreement over the application of the equitable
adjustment clause of the contract."
AK Steel said it and its predecessor companies have served GM for more
than 90 years. GM has awarded AK Steel its Supplier of the Year award
twice in recent years. Notwithstanding the litigation, AK Steel said it
anticipates that it will continue its long and mutually beneficial relationship
with GM for many years to come.
"Even in good relationships, disputes sometimes arise which the parties
themselves cannot initially resolve," said Richard M. Wardrop, Jr.,
chairman and CEO of AK Steel.