Stellantis is suing its parts supplier Brose over price increases, according to CarScoops.
Having threatened a shipment pause in August 2023 unless Stellantis agreed to a price increase, Brose reached an agreement with the automaker in Nov. 2023; but now, according to Stellantis, the company is going back on its word.
The latest lawsuit from Stellantis was prompted after a two-day shutdown at Brose’s Windsor facility.
“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 stated.
This marks the fifth supplier Stellantis has sued. Prior to this, the most recent supplier the automaker sued was in July, also over price increases. In August, a lawsuit was also filed against a dealership that attempted to return unsold fleet vehicles, with Stellantis facing another legal challenge later that month from shareholders disappointed with declining profits.
“We recognize that the volatility in the automotive industry has significantly impacted relationships between the supply base and OEMs,” Brose said in a statement. “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.”
