Cleveland-Cliffs Announces “Buy American” Automotive Incentive Program for Employees

Rhea-AI Summary

Cleveland-Cliffs (NYSE: CLF) has announced a new 'Buy American' incentive program for its workforce of nearly 30,000 employees. The program will offer a $1,000 cash bonus to employees who purchase or lease new American-built vehicles containing substantial Cliffs' steel content during calendar year 2025.

Vehicles manufactured outside the United States or using significant amounts of imported flat-rolled steel will not qualify for the incentive. The company will provide detailed guidance on vehicle eligibility directly to employees.

The initiative aligns with efforts to boost domestic manufacturing and support American-made products. Cleveland-Cliffs will host a joint press conference at its Cleveland Works plant featuring CEO Lourenco Goncalves and U.S. Senator Bernie Moreno to discuss this program.

Positive

• Employee incentive program promotes company's steel product usage
• Initiative potentially increases domestic steel demand
• Program aligns with broader 'Buy American' manufacturing strategy

Negative

• to calendar year 2025 only
• Relatively small incentive amount ($1,000) per employee
• Program costs could impact company expenses if widely adopted

Insights

Financial Analyst

Cleveland-Cliffs' new "Buy American" employee incentive program represents a strategic alignment with protectionist trade policies while potentially creating a modest financial feedback loop. The $1,000 bonus to employees purchasing American-made vehicles containing substantial CLF steel effectively serves dual functions: incentivizing domestic steel consumption and creating employee engagement.

While the maximum financial exposure ($30 million if all 30,000 employees participated) represents less than 1% of annual revenue, the real value lies in the potential multiplier effect. Each qualifying vehicle purchase theoretically increases demand for Cliffs' steel products, creating a virtuous cycle where employee purchases drive additional business from automakers seeking to qualify their vehicles.

This program also positions CLF strategically amid shifting trade policies, particularly as domestic manufacturing initiatives gain political momentum. The timing aligns with expectations of increased tariffs and "Buy American" federal mandates that would benefit domestic steel producers.

Beyond the direct financial impact, this initiative creates valuable marketing and relationship capital with domestic automakers and political stakeholders. By tying employee benefits directly to steel content in vehicles, CLF is effectively converting employees into product advocates while reinforcing their steel's value proposition to automotive customers.

Industry Specialist

This employee incentive program represents a shrewd vertical integration strategy within the automotive supply chain. By incentivizing purchases of vehicles containing their steel, Cleveland-Cliffs is effectively creating a small but meaningful demand signal to automakers that could influence material sourcing decisions.

In the highly competitive automotive supply landscape, where pricing is often the dominant factor, this program creates a differentiated value proposition for domestic steel. CLF is leveraging its workforce as both beneficiaries and advocates, effectively transforming 30,000 employees into potential brand ambassadors for American-made vehicles with CLF steel content.

The explicit vehicle eligibility requirements—excluding those produced outside the US or using significant imported steel—creates a clear competitive advantage against foreign competitors. This aligns with broader industry trends toward more localized and regionalized supply chains, particularly in critical materials like steel.

The program's announcement alongside Senator Moreno suggests CLF is positioning itself advantageously ahead of potential policy changes favorable to domestic manufacturing. It's a proactive stance that could yield disproportionate benefits if federal procurement and infrastructure policies increasingly favor domestic content.

For automotive manufacturers, this initiative creates an additional incentive to highlight domestic steel content as a selling point, potentially influencing procurement decisions beyond the direct impact of employee purchases.

CLEVELAND--(BUSINESS WIRE)-- Cleveland-Cliffs Inc. (NYSE: CLF) today announced a company-wide “Buy American” incentive for its nearly 30,000 employees. During the calendar year 2025, any Cleveland-Cliffs employee who purchases or leases a new American-built vehicle with substantial Cliffs’ steel content will receive a $1,000 cash bonus in connection with the purchase.

Lourenco Goncalves, Cliffs’ Chairman, President and CEO said: “We are pleased to do our part to support President Trump’s long-term vision of bringing manufacturing back to the United States. In order to be a global superpower and Make America Great Again, companies need to produce things in America and people need to buy things that are made in America. This incentive is a small token of our appreciation for the Administration’s “America-First” agenda and serves as recognition that our employees, as American consumers, will help power the resurgence of domestic manufacturing. We hope that other companies will follow suit and do their part to incentivize consumption of American-made products.”

U.S. Senator Bernie Moreno said, “For decades, workers in states like Ohio were devastated by elites in Washington who shipped their jobs overseas while importing cheap foreign products instead of manufacturing here in America. But thanks to President Trump and bold leadership from industry leaders like Cleveland-Cliffs, American manufacturing is poised to see a boom like never before. I applaud Cleveland-Cliffs’ bold leadership in fighting for American workers and am proud to join Lourenco in this historic announcement.”

Vehicles produced in a plant outside of the United States, or that use a significant amount of imported flat-rolled steel, will not qualify for the incentive. Further guidance regarding vehicle eligibility will be communicated directly to employees.

Cleveland-Cliffs will hold a joint press conference today at its Cleveland Works plant in Cleveland, Ohio, featuring Chairman, President, and CEO Lourenco Goncalves and U.S. Senator Bernie Moreno.

The event will be broadcast live on the Company’s YouTube channel. A replay will be available after the event on Cleveland-Cliffs’ channel.

Event Details:

• Date: Friday, March 7, 2025
• Time: 10:30 AM ET
• Webcast Link: https://www.youtube.com/c/ClevelandCliffsInc

About Cleveland-Cliffs Inc.

Cleveland-Cliffs is a leading North America-based steel producer with focus on value-added sheet products, particularly for the automotive industry. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 30,000 people across its operations in the United States and Canada. For more information, visit http://www.clevelandcliffs.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250307892745/en/

MEDIA CONTACT:

Patricia Persico

Senior Director, Corporate Communications

(216) 694-5316

INVESTOR CONTACT:

James Kerr

Director, Investor Relations

(216) 694-7719

Source: Cleveland-Cliffs Inc.

FAQ

What is Cleveland-Cliffs' new Buy American incentive program for 2025?

CLF will offer a $1,000 cash bonus to employees who purchase/lease new American-built vehicles containing substantial Cliffs' steel content during 2025.

How many employees are eligible for CLF's 2025 vehicle purchase incentive?

Nearly 30,000 Cleveland-Cliffs employees are eligible for the Buy American incentive program.

Which vehicles qualify for Cleveland-Cliffs' 2025 employee incentive program?

Only American-built vehicles containing substantial Cliffs' steel content qualify. Vehicles made outside the US or using significant imported flat-rolled steel are not eligible.

When will CLF announce details about eligible vehicles for the incentive program?

Cleveland-Cliffs will communicate further guidance regarding vehicle eligibility directly to employees.