WirtschaftsWoche citing letters it obtained reported that German automotive suppliers including Remscheid and Germany based Edscha have received letters from steel companies saying deliveries may be cut unless they accept price increases that breach previously signed contracts.
The magazine cited Mr Manfred Puhlmann CEO of Edscha as saying that “We are getting a clear message from many of our suppliers: either you pay EUR 180 more per tonne of shaped flat steel or we cannot guarantee that we can continue to supply you.” It added that “Even long term contracts hardly have relevance now.”
In an excerpt of an article to be published on Monday the magazine also said an unnamed southern German steel supplier told customers they will 'definitely' not receive steel ordered if they refuse to accept price increases.
