The dispute between Stellantis and one of its historic Italian supply chain suppliers ends up in court, a condition that certifies the difficulties of a sector that in Turin can no longer achieve the numbers of the past. It is therefore a real battle centered on continuous appeals in court in Turin, a situation that certifies the problems between Stellantis and parts of the supply chain. We’re talking about the issues between Stellantis and Baomarc Automotive Solutions Spa, once Italian and now Chinese-owned, a long-standing supplier of components for the Ducato. Baomarc Automotive Solutions Spa had been summoned to court by Stellantis for interrupting supplies to the Atessa plant last December, and then also to Melfi and Pomigliano d’Arco.
According to the automotive group, this is a real blackmail by Baomarc Automotive Solutions Spa, or an extreme measure according to the supplier who complains about having asked many times to adjust and update the prices of its supplies compared to the agreement from the now distant 2002.
Baomarc Automotive Solutions Spa’s turnover heavily depends on Stellantis
Baomarc Automotive Solutions Spa was founded forty years ago and produces tools and presses useful for industrial stamping. Today we’re talking about a company that’s part of the Chinese group Baowu, capable of employing 334 employees, spread across various locations including Atessa where Stellantis produces commercial vehicles offered by the Group’s various brands. It should be noted that 80% of Baomarc Automotive Solutions Spa’s turnover depends on Stellantis.
Now the supplier accuses Stellantis of never having adjusted prices in 22 years of contract between the parties, despite the increase in production costs of different components, aluminum, but also transport and energy. According to Baomarc, Stellantis asked for further discounts on supplies in December. In light of these considerations, in recent months Baomarc had decided to interrupt supplies destined for the Stellantis plant in Atessa, introducing a real block to production levels. “The interruptions of supplies, communicated with adequate notice, are the natural consequence of not being able to produce at a loss in the face of Stellantis’ absolute unavailability towards any reasonable and appropriate solution,” read a note from the supplier that emerged, also adding that in these years Baowu “has supported the company with over 30 million in capital increases instrumental in making up for the commercial losses caused by Stellantis”.
On May 3, an order from the Turin Court partially accepted Baomarc‘s reasons, deeming Stellantis’ conduct “abusive” in maintaining contractual conditions dating back to 2002 despite these having become particularly burdensome for Baomarc. The Court also obliged Stellantis to appoint a specific figure to negotiate supply prices, an obligation later annulled by a new order at the end of June, which accepted Stellantis’ appeal. So the Group brought home a victory on the legal front, although on the industrial front the battle seems not to have concluded yet. The same situation, for a similar reason, recently occurred in North America with the supplier Spectra Premium Mobility Solutions.