Stellantis: History and legacy of automobile manufacturers
We explore the history of Stellantis, the automotive giant formed in 2021 through the merger of Fiat Chrysler Automobiles and PSA Group.
- Stellantis was ranked at the bottom of the annual survey of supplier relations.
- Toyota, Honda and General Motors have improved scores.
The attorney representing Stellantis was in court in Detroit earlier this month and filed the suit before the Michigan Court of Appeals.
The hearing, which entails a contract between the company’s US operations division known as FCA US LLC and supplier Kamax, led to a decision in favor of the automaker.
It’s not uncommon for automakers to deal with lawsuits, but industry watchers say it’s rare for automakers and their suppliers to engage in public battles.
But that’s not a new story from Stellantis, and the challenge that Jeep, Ram, Chrysler, Dodge and Fiat brand owners took on deals with suppliers was shown again this week in the release of Supplier Sentiment Survey.
Again, Stellantis stands out, and was last ranked among automakers examined in Plante Moran’s 25th North American Automobile OEM Supplier Work Index Study (OEM is an abbreviation used to refer to automakers as “original equipment manufacturers”). In turn, from the best to worst, Toyota, Honda and General Motors each increased their scores last year, while Nissan, Ford and Stellantis each fell. Other automakers, including Tesla, should not participate.
The order of the rankings has not changed since last year. However, Stellantis has scored its worst score since 2021. It was formed in the same year from the merger of Fiat Chrysler Automobiles and Peugeot Maker PSA Group.
This year’s results represent the biggest gap between top automakers since 2008, according to Dave Andrea, principal of Plante Moran’s strategy and automotive and mobility consulting practices. The results are based on responses from 665 supplier executives from 398 Tier 1 suppliers when the automotive industry deals with volatility from changing market conditions and is currently facing uncertainty caused by tariffs.
Companies that do well in research tend to be known for better communication, responsiveness and treatment of their suppliers, like partners.
“The top three are better enabling suppliers to have better control over costs, achieve fair cost sharing and better navigate uncertainty,” said Angela Johnson, principal of Plante Moran’s management consulting and supplier relationship analysis. She said the suppliers do not expect the automaker to cover all the costs.
Stellantis provided a statement through spokeswoman Jodi Tinson, acknowledging that it had work to do.
“We recognize that despite increasing our engagement efforts with our suppliers since the formation of Stellantis, we need to do more work to maintain trust. This will continue to be Stellantis’ priority and we will continue to work with our suppliers to focus on improving where we are most important.”
Regarding Camax’s lawsuit arising from the Oakland County lawsuit, the automaker said, “We have once again ruled that our order agreement is a legal requirement agreement, as we have said in the past. Desire.”
The recent ruling from the Michigan Court of Appeals deals with Camax’s efforts in 2023 and 2024, encouraging carmakers to renegotiate the prices they pay for car fasteners. Camax later said it would stop deliveries, but relented following a decision in Oakland County Circuit Court, and the case eventually advanced to the Court of Appeal.
This is one of many lawsuits involving Stellantis and its suppliers in recent years.
Detroit-based lawyer Dan Lasman represents the company Butzel, which is a very rare and usually a last resort, representing a number of suppliers known as litigation between suppliers and automakers.
Noting that he represents “many tier 1 suppliers,” Lastman said, “In my experience working with many different car manufacturers, it was the most difficult of a customer who had to deal with on behalf of his client, anecdotely, like a star.”
For example, in an era of rising costs, some automakers want to provide more relief than others, he said.
“In my experience, Stellantis wasn’t that happy. That’s why they face all this lawsuit and confusion from the supply chain,” he said.
Rustmann said his company’s experience is closely matched with the results of the Plante Moran survey.
Rustmann says it cannot directly lead to an impact on the final product. This means a vehicle that consumers buy, but he said it’s common sense to treat others fairly.
“Treat your suppliers poorly, beat them, and don’t feel at ease with them when they have a rising cost… you’re not going to get the best (technology) from them,” he said.
Eric D. Lawrence: Please contact elawrence@freepress.com. Become a subscriber. Send a letter to the editor at freep.com/letters.
