- Stellantis just sued Brose, a major automotive parts supplier for the group.
- It cites a pricing dispute with the German parts maker as the cause of the lawsuit.
- This marks the fifth supplier Stellantis has taken to court this year in a wave of legal battles.
Stellantis is pointing fingers at its supplier, Brose, for bringing production to a halt at its Windsor facility. Evidently, the German parts maker increased prices on some supplies and Stellantis has been paying for them in protest since July 1. Now, the automaker is pushing back with a lawsuit in hopes of reaching a more lucrative deal.
Brose, one of the five largest family-owned automotive suppliers in the world, provides parts to various tier-one suppliers but in this case, it determines how much to make and where to send them based on orders from Stellantis. As of August 2023, it reportedly threatened Stellantis with a shipment pause unless the automaker granted a price increase.
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According to Crain’s Detroit, the two sides made an agreement in November, but Stellantis claims that Brose went back on its word after the fact. Now, it’s suing Brose after a two-day production shutdown in Windsor. “It has become increasingly clear that unless the court orders otherwise, Brose will refuse to honor its contracts with FCA and will continue to demand more money for its goods as it desires, leaving the continuous operation of FCA’s plants at risk,” the lawsuit says.
“We do not comment on pending litigation,” Brose said in the statement. “However, we recognize that the volatility in the automotive industry has significantly impacted relationships between the supply base and OEMs. Our main goal is to protect our business and employees, as we are committed to finding reasonable solutions to support our customer relationships. We remain hopeful for a resolution that allows our partnership to continue.”
This year has already been a whirlwind of litigation for Stellantis. Back in July, the automaker took its fourth supplier to court, arguing that its price hikes were downright unreasonable. Then, in August, it turned around and sued a dealership that attempted to return unsold fleet vehicles with a hefty collective value of $180 million. Later that same month, Stellantis faced yet another legal battle—this time from a group of disgruntled shareholders frustrated by plummeting profits. All in all, it’s been a bruising year.
Clearly, things are tumultuous over at Stellantis right now. It’s working on finding a new CEO, several brands are in the midst of huge shifts, and these lawsuits and hanging over everything. It doesn’t sound like an awesome time to be a parts supplier to the company. Who knows when the next lawsuit might drop?
