Stellantis points the finger at German supplier Brose for the production stoppage at the Windsor plant. The components company allegedly increased supply prices, forcing Stellantis to pay higher rates starting July 1st. The automotive group has therefore decided to take legal action to obtain more favorable contractual terms.
Stellantis is taking Brose to court and blames them for the production stoppage at the Windsor plant
Brose, among the world’s top five family-owned automotive suppliers, supplies numerous first-tier component manufacturers. In this specific case, the company manages production and distribution based on Stellantis’ orders. Last August, Brose allegedly threatened to stop supplies if the manufacturer didn’t accept a price increase.
In November, the two companies had reached an agreement, but according to Stellantis, the German supplier failed to honor its commitments. After two days of production stoppage at the Windsor plant, the group has initiated legal action against Brose. In the complaint, Stellantis argues that without court intervention, Brose will continue to violate contractual agreements, imposing unilateral price increases and jeopardizing plant operations.
“We do not comment on ongoing legal disputes,” Brose stated in their declaration. “However, we recognize that volatility in the automotive sector has significantly impacted relationships between the supply base and automakers. Our primary goal is to protect our business and employees, as we strive to find reasonable solutions to support relationships with our customers. We remain confident in reaching a resolution that allows our partnership to continue.”
The dispute with Brose adds to other legal actions that Stellantis has taken in 2024 against its suppliers over price increases. While the group opposes what it considers unjustified price hikes, the entire automotive sector is going through a period of strong instability. The group led by Carlos Tavares has already sued four other suppliers since the beginning of the year for similar disputes. This course of action highlights Stellantis’s firm determination to enforce contractual agreements, especially in cases of unilateral price modifications.