"Peterson Spring says in a court filing it can't afford to ship the parts to the automaker at a price it claims is below the cost to produce them at its facility in Woodstock, Ont. Lawyers for Stellantis claim the supplier has threatened to stop shipping parts if the automaker does not pay twice the contracted price, equal to a $77-million US annual increase."
"They argue that it's extortion, and any disruption from their sole supplier for the part would cause massive and immeasurable disruption, including idling two Stellantis assembly plants in Michigan. Stellantis is asking an Ontario court to appoint an independent company to take charge of the Woodstock operation and order the continued shipment of parts. Stellantis writes in court filings that it's attempting to find alternative options, but replacing the supplier requires new parts passing safety tests in a process that could take two years."
"Canada's Automotive Parts Manufacturers' Association (APMA) says the case demonstrates the fragile nature of the automotive supply chain. When [U.S. President] Donald Trump says, I want to have everything sourced in the U.S.' and his administration thinks it can happen overnight, said APMA president Flavio Volpe, "here's a world-leading automaker saying that for a very simple part, a rotor, it would be minimum 24 months."
Stellantis and supplier Peterson Spring are in an Ontario court dispute over brake rotor pricing after the supplier said it cannot afford to ship parts at the contracted price from its Woodstock, Ont., plant. Stellantis alleges the supplier demanded double the contracted price—about $77 million US annually—and threatened to halt shipments, calling the demand extortion and warning that a parts interruption could idle two Michigan assembly plants. Stellantis seeks a court-appointed independent operator to run the Woodstock facility and compel shipments. Replacing the supplier would require new parts and lengthy safety testing, potentially taking about 24 months. The case coincides with fraud and bankruptcy-linked complications around ownership of the Woodstock operation.
Read at www.cbc.ca
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