Are You Kidding Me?-Shortage forces Honda to airlift 200 tons of steel

DETROIT, July 8 Reuters reported that rising prices and shrinking supplies of carbon-treated sheet steel have forced Honda Motor Co. Ltd.'s to airlift 200 tons of steel from Japan to supply its North American auto plants, the automaker said on Monday.

Honda spokesman Ron Lietzke said the airlift last week of carbon-treated sheet steel was a "relatively small amount" given Honda's needs. Honda said it could bring up to 2,000 tons into North America should supplies remain tight.

U.S. steel costs have risen and supplies have shrunk since March, when President George W. Bush imposed tariffs of up to 30 percent on imported steel to strenghten domestic steel producers.

Large U.S. auto parts suppliers warned the Bush administration in June that the steel tariffs were creating shortages, and that tight steel supplies could disrupt the production of auto parts and vehicles within the United States.

Lietzke had previously said the company could ship up to 2,000 tons of steel if supplies could not be found, saying the problems were related to "the market situation for steel in North America." U.S. and Canadian steelmakers supply Honda with about 95 percent of the steel it uses in North America.

"We're going through a period of getting new suppliers on line for sheet steel," Lietzke said. "There is some disruption as we adjust supplies from one to another."

Honda built about 950,000 vehicles in North America last year, and is opening a new minivan plant in Alabama this year.