EoW July 2011

Elsewhere in steel . . . ❈ Citing higher costs and a pickup in the pace of orders, AK Steel on 23 rd May increased base prices by $50 per ton for its hot rolled and cold rolled carbon steel products; and by $60 per ton for its coated carbon steel products. Acting on the basis of April prices for raw materials and energy, the West Chester, Ohio, steel maker had already announced a surcharge of $435 per ton on its electrical steel products set for shipment in June. Metals prices are trading at historic highs as global economic growth boosts demand for metals and other commodities. Energy prices have followed suit, driven in part by higher demand and rising oil prices.

its new 2012 Passat as key to a greatly enhanced VW presence in the United States. The midsize sedan – bigger and cheaper than previous models, and otherwise revamped for American tastes – will be manufactured in a plant in Tennessee rather than imported from Europe. Volkswagen has clearly signalled its recommitment to the North American market, and the domestic Passat is the repository of high hopes. But the real news to come out of the gala event, held at the factory where Passat production began in April, may be that Volkswagen is mulling a plan to build Audi luxury cars in the United States. Writing from Chattanooga, the Wall Street Journal ’s automotive reporter Mike Ramsey said that the decision, to be reached over the next year, will depend on whether or not projected Audi volume warrants a dedicated stateside plant. Volkswagen’s German rivals BMW and Daimler (Mercedes-Benz division) both have American operations, but each sells more than twice as many cars a year in the US as Audi. (“Volkswagen Considers Building US Audi Factory,” 24 th May) Volkswagen hopes to dramatically increase US sales of all its products, including the highly prized Audi, over the next five years, and Mr Ramsey noted that it will be relying heavily on Chattanooga. Manufacturing locally, and buying 85% of the North American Passat’s parts from nearby suppliers, the company is able to greatly reduce its costs.

Automotive

Central to Volkswagen’s ambition to become the world’s largest auto maker by 2018 is a big new plant in the American South At the grand opening of a $1 billion Volkswagen plant in Chattanooga, on 24 th May, the German auto maker presented

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EuroWire – July 2011