Auto Industry Uses Conflict Minerals Challenge as Opportunity to Optimize Supply Chain
Despite the recent filling for Chapter 9 bankruptcy by the City of Detroit, the auto industry continues to push forward with conflict minerals compliance.
The regulations, outlined in Section 1502 of the Dodd-Frank Consumer Protection Act, require that all publically traded companies disclose whether they use tin, tantalum, tungsten or gold in their products.
Such a process requires a deep look into an issuers supply chain, which is much more of an undertaking than many companies had anticipated. In the case of the auto industry, these minerals are found in many automotive products, including fuel tanks, seat cushions, batteries, brake pads, radiators, sealants, glass and electronics, according a study by the Southfield-based Automotive Industry Action Group.
With the first reporting deadline quickly approaching, many companies in the auto industry are pushing ahead with a positive attitude. In a recent interview with Crain’s Detroit Business, director of energy and utilities at Severstal North America Gerrit Reepmeyer said "in the future, this whole issue of sustainability will become broader and broader, this is why we took a proactive approach, to meet any new criteria coming up. We only see this as the beginning of sustainability" regulations.”
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