According to foreign media reports, according to a lawsuit submitted to the Oakland County Circuit Court in the United States, Stellantis earlier this month filed a lawsuit against Spectra Premium Mobility Solutions Ltd, a Quebec parts supplier.
A lawsuit was filed after the supplier threatened to stop delivering fuel tanks for Chrysler’s Pacifica plug-in hybrid minivan after demanding a price increase, which would lead to the suspension of production at the Stellantis Windsor assembly plant.
Photo source: Stellantis,Stellantis said its supplier Spectra asked for a 12.
5% price increase from January 1 this year, otherwise it would stop supplying parts.
The Stellantis is running out of fuel tanks late last week, which will shut down the production line.
Stellantis filed a temporary restraining order for Spectra to continue to deliver parts at the contract price, but a judge in Oakland County rejected the application.
Stellantis alleges in the lawsuit that in 2022, the company agreed to pay Spectra’s full raw material costs according to the agreed index, but Spectra refused to provide Stellantis with cost change data to justify its price increase, which, according to Stellantis, would at least double Spectra’s profit margin.
The lawsuit also states: “the defendants admitted to Stellantis that they had produced about 400 fuel tanks that had been completed and ready for delivery, but they simply did not deliver the goods and tried to force Stellantis to agree to a price increase.
” According to the lawsuit, it is unclear to what extent, if any, production has been affected at the Stellantis plant, which produces 350 minivans a week and plans to expand to 750 in the second half of this year.
Stellantis warned that production shutdowns related to supplier disputes could have devastating consequences and could include mass layoffs and huge economic losses.
However, Stellantis avoided long-term production disruptions by winning court injunction relief or paying protesting suppliers.
Stellantis said that as with previous lawsuits, the shutdown would not only have an impact on carmakers’ production, but would also have dire consequences for the supply chain that relies on the Pacifica.
The lawsuit alleges that the economic consequences of such a large-scale interruption in the auto industry are huge and incalculable.
However, Judge Victoria Valentine rejected Stellantis’s application for a temporary restraining order against Spectra, but did not give a reason for the refusal.
The lawsuit against Spectra is the fourth time that Stellantis has filed a lawsuit against a supplier this year.
Price disputes are common in the automotive industry, but it is rare for customers to sue suppliers.
In recent months, the long-standing tension between Stellantis and component manufacturers has peaked as Stellantis relentlessly pursues cost reduction and makes no secret of its willingness to reduce costs from its supply chain base.
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