
Stellantis continues its shady cost cutting measures with another lawsuit
Stellantis cars make up some of the best new options on the market. Naturally, we can’t forget that Dodge and Ram are American treasures. However, the automotive giant has faced a string of troubles in recent years, especially in 2024. This has led to some drastic measures, including lawsuits. We’re not talking about class action suits against the company; rather, Stellantis is making a habit of suing suppliers. Sadly, it has just launched a new one.
Stellantis has had several issues with its cars and suppliers
Stellantis makes several cars, including Dodge, Ram, Fiat, and Chrysler models. Unfortunately, people aren’t buying them despite being some of the best new cars on the market. This has led to the automotive giant finding ways to cut costs, including suing suppliers for raising prices. According to CarScoops, the automotive giant has launched a fifth lawsuit against a supplier.
This time, Stellantis is suing Brose, a German supplier that makes components for several of its cars. For history’s sake, the company reportedly threatened to stop shipping parts to Stellantis in October of last year if they couldn’t negotiate higher prices. Reports say that they came to an agreement the following month. However, Stellantis is suing because it says Brose reneged on the deal and increased prices even more.
Since July, Stellantis has been paying undesirable prices for car parts. Now, there has been a pause in production at Stellantis’ Windsor plant due to the lack of parts from Brose, and the company is moving forward with plans to sue.
According to the lawsuit, “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.”
Brose issued a response to the lawsuit involving Stellantis and its parts for cars. It reads, “We do not comment on pending litigation. 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.”
Of course, Stellantis taking this measure may not be as bad as having class action suits launched against it. However, this continued litigation against suppliers sends a negative message to other companies that could supply parts in the future. While the struggling company needs to cut costs, this may not be the best course of action.
For more reading, check out our article on a previous Stellantis lawsuit.