- Judge Michael Warren has ruled that Stellantis must pay its supplier to continue receiving transmission parts.
- The supplier, MacLean-Fogg, shut down Stellantis transmission production in March, following a dispute over the price of parts.
- Stellantis is engaged in three legal disputes with suppliers in the U.S., as it looks keep costs down.
Stellantis’ attempt to force one of its suppliers to continue delivering parts while a legal dispute over price is worked out in the courts has been rejected. The automaker is now vulnerable to plant shutdowns.
Stellantis’ suit is targeted at MacLean-Fogg, which makes gears and pinions that go to the automaker’s Kokomo, Indiana, plants. The facilities make transmissions for the Ram 1500, Jeep Wrangler, Jeep Grand Cherokee, Dodge Charger, Dodge Durango, and the Chrysler Pacifica.
Read: Stellantis Battles Suppliers Leading To Plant Shutdowns And Lawsuits
In March, Stellantis agreed to make a $1.4 million payment under protest to MacLean-Fogg after the supplier withheld shipments, shutting down production in Kokomo, reports Crain’s. However, lawyers for MacLean-Fogg said that the automaker didn’t pay up.
Instead, Stellantis sued the supplier, seeking a court order to keep parts rolling in. The automaker argues that MacLean-Fogg has put it under “hostage threat,” and that if parts aren’t delivered, the impact could be “catastrophic,” prompting plant shutdowns that could cause hundreds of millions of dollars in losses.
However, Judge Michael Warren did not find Stellantis’ logic compelling. He ruled that the automaker has to continue paying MacLean-Fogg under protest.
“This cascade will only occur if [Stellantis] refused to pay under protest,” Judge Warren wrote in his opinion. “Akin to a civil contemnor, who holds the key to her own jail cell, [Stellantis] can avoid this impending economic disaster by paying under protest.”
It’s not all bad news for Stellantis, though. In his opinion, the judge found that the automaker “demonstrated it is more likely to prevail on merits,” and that it can seek monetary damages from MacLean-Fogg if it prevails in its lawsuit.
Stellantis is in the midst of three legal battles with suppliers after announcing earlier this year that it would not negotiate prices with the companies that make parts for its vehicles.
