Citing quality concerns, GM cuts LTV Steel loose.(General Motors Corp.)(Brief Article)

Purchasing, August, 2001 by STUNDZA, TOM

General Motors Corp. has decided to drop long-time steel supplier LTV Steel Corp. of Cleveland at the end of this year. LTV supplies GM with about 500,000 tons of steel per year. So, the move is a severe blow to the steelmaker, struggling to reorganize under Chapter 11 bankruptcy protection (since GM is its largest customer).

GM purchasing managers will say only that they "intend to work with a smaller number of steelmakers that can consistently drive high levels of quality, delivery and innovation at competitive cost levels; or, in short, those suppliers that can help us create more winning products." A spokesman for the world's biggest automaker admits the Detroit-based company wants to cut back on its number of steel suppliers. "While there is no set...

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