Stellantis Faces Lawsuit Over Fuel Tank Supplier Dispute

Background

Stellantis, a major automaker, is currently embroiled in a legal battle with one of its fuel tank suppliers. The supplier, Spectra Premium Mobility Solutions, is demanding higher prices for the fuel tanks it provides to Stellantis, threatening to halt production of the Pacifica minivan at the Windsor Assembly Plant.

The Lawsuit

In response to Spectra’s demands, Stellantis has filed a lawsuit against the supplier. The automaker claims that Spectra is withholding already manufactured fuel tanks in an attempt to force Stellantis to agree to a 12.5-percent price increase retroactive to the beginning of the year.

Legal Action

To compel Spectra to continue supplying fuel tanks at the agreed-upon contract price, Stellantis sought a temporary restraining order. However, an Oakland County Judge denied the request, leaving Stellantis with the choice of either paying the higher prices or facing a production shutdown.

Implications

This dispute is part of a larger trend for Stellantis, which has faced similar challenges with other suppliers in the past. The automaker has previously paid suppliers under protest to keep production running and sought injunctive relief from the courts to enforce contract prices.

Production Concerns

It remains unclear how this conflict will impact the production of the Pacifica minivan. Stellantis aims to increase production rates from 350 units per week to 750 units by the end of the year, but ongoing supplier disputes could jeopardize this goal.