Teksid Aluminium, the large metallurgical group formerly known as Fiat Ferriere and now part of Stellantis, has informed its suppliers of the suspension of supplies and related payments until the beginning of the new year. This could be the first measure taken by the automotive group, with the aim of saving money following poor sales results in the United States, where it recorded a 20% decline in the third quarter.
Is Teksid’s halt to supplier orders the first effect of Stellantis’ Doghouse plan?
“We hereby inform you that Stellantis is adopting rigorous measures to contain costs and liquidity in anticipation of the end of 2024. Therefore, all suppliers are reminded not to initiate any activity without an order approved by management. Best regards,” reads the notice.
This is the communication sent on October 23, 2024, by Teksid Aluminium, part of the Stellantis group and a leader in the steel sector, to its suppliers. In essence, this implies a suspension of payments until 2025 due to the liquidity crisis that the group led by Carlos Tavares is facing.
“This is the first time we have received such a communication. It has never happened before. This is a very serious situation,” commented one supplier. Under the current circumstances, suppliers expect a particularly complicated 2025, with the concrete risk that many in the sector may find themselves in difficulty.
We recall that in recent days, the Stellantis group announced that it will present its third-quarter financial results on October 31, through the new CFO Doug Ostermann, who replaced Natalie Knight, who was in conflict with Tavares. Before leaving the company, the former CFO had nevertheless requested her team to carefully examine purchase requests from external suppliers, implementing stricter controls to contain expenses. We will see what other developments arrive in this regard over the coming days.