WASHINGTON, March 29 (Reuters) - A group representing

major automakers on Friday urged the White House to oppose any

effort by steelmaker Cleveland-Cliffs ( CLF ) to buy rival U.S.

Steel, warning that a deal could result in

anti-competitive pricing for vehicles.

"A consolidation of the two companies would also place 65 to

90% of steel used in vehicles under the control of a single

company," Alliance for Automotive Innovation CEO John Bozzella

said in a letter, which was first reported by Reuters.

President Joe Biden said earlier this month that U.S. Steel,

which has agreed to be bought by Japan's Nippon Steel ( NISTF )

for $14.9 billion, must remain a domestically-owned U.S. firm.

Cleveland-Cliffs ( CLF ) has said it would consider another bid for U.S.

Steel if the deal with Nippon Steel ( NISTF ) falls apart.

"If the administration has concerns about the Nippon

Steel ( NISTF ) deal, it must seriously consider alternative outcomes,"

said the letter from the group, which represents General Motors ( GM )

, Toyota Motor Corp ( TM ), Volkswagen,

Hyundai and others. "One option that should not be

on the table is an arrangement that creates a market

concentration of domestic steel production in a single company."

The White House, Cleveland-Cliffs ( CLF ) and U.S. Steel did not

immediately comment on the letter.

A combination of U.S. Steel and Cleveland-Cliffs ( CLF ) would

control "100% of the domestic electrical steel (e-steel) needed

for electric vehicle (EV) motors and EV production," the

automaker group said in its letter.

It warned that a deal could "drive up the cost of both

steel and e-steel, and ultimately increase the cost of finished

vehicles (including EVs) for American consumers."

The group wrote Congress, the Federal Trade Commission

and U.S. Justice Department in October to

raise its concerns

about a tie-up, citing concerns about steel used to produce

vehicle structural frames, automotive surface panels like doors,

hoods and fenders, and EV motors.