Last year, a supplier had to pause production due to a cyberattack, so Stellantis charged it $26 million, kicking off a legal battle
April 18, 2024 at 15:52
–> 
–>
- Yanfeng makes interior components for Jeep and Ram vehicles, and was the victim of a cyberattack that caused it to pause production last year.
- Stellantis, unable to make some vehicles due to the interruption, charged Yanfeng $26 million.
- Now, the companies are locked in a legal battle, which is just the latest courtroom kerfuffle that Stellantis has gotten into with its suppliers.
The courts are going to start getting sick of Stellantis’ lawyers, as the automaker has become embroiled in yet another legal battle with one of its suppliers. This time, it is facing off against China’s Yanfeng, which makes instrument panels, door panels, and center consoles.
The fight started last year when Yanfeng was targeted by a cyberattack that temporarily halted operations. Stellantis claims that as a result of the temporary lack of supply, it was forced to shut down production of Ram and Jeep vehicles at three plants in Detroit, and one in Mexico.
More: Stellantis Battles Suppliers Leading To Plant Shutdowns And Lawsuits
In a lawsuit, Stellantis claims that the shut-down caused $26 million in damages, which it promptly charged to Yanfeng, reports Crain’s Detroit. However, the supplier protested and threatened to terminate its contract with the automaker.
At various times on January 12, 16, and 17, Yanfeng halted the delivery of components to Stellantis, prompting the automaker to file an injunction. In all, the automaker claims it lost more than $300 million in revenue as a result of being unable to manufacture 6,000 Jeep and Ram vehicles.
“Immediate injunctive relief is necessary not just to prevent irreparable harm to [Stellantis] but also to avoid widespread disruption and catastrophic harm across the automotive industry if Yanfeng abandons its obligations under the parties’ contracts,” the automaker’s lawyer wrote in a lawsuit.
On January 30, a judge forced Yanfeng to resume shipment of parts to Stellantis. However, the supplier counter-sued seeking the dismissal of the automaker’s suit, and damages because of Stellantis’ “practice of systemically ordering components and effectively canceling its orders last minute including labor, storage, scrap and raw material costs unnecessarily incurred by Yanfeng.”
Just the latest supplier scuffle to reach the courts, Stellantis is also facing off against Kamax, which makes fasteners, and MacLean-Fogg, a manufacturer of pinions and gears that go into transmissions.
The suppliers are frustrated that the automaker is no longer accepting claims for cost increases. While disputes over money are nothing new in the industry, since the merger that led to the creation of Stellantis, the automaker has taken a hard line against its suppliers, causing tensions to boil over in recent weeks.
