Category: Stellantis

Apr 21

Cyberattack Spurns Another Stellantis Lawsuit Against Suppliers; This Is Getting Old

The most recent legal battle for Stellantis started with a cyberattack on the supplier.

Cyberattacks cause serious problems for many companies. Last year, one such attack caused a Stellantis supplier to halt operations and deliveries of some parts to auto plants in Detroit and Mexico. Stellantis claims this cost the automaker $26 million, which they promptly charged the supplier. This created the most recent legal battle for the automaker.

Yanfeng fights back in the courtroom

Yanfeng, the subject of Stellantis’ most recent legal ire, makes instrument panels, door panels, and center consoles for Ram and Jeep vehicles. On three different dates in January, Yanfeng halted the delivery of components to Stellantis. This spurned the automaker’s filing for an injunction against the supplier.

“Immediate injunction 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.”

– Stellantis Lawyers

In addition to the $26 million in claimed losses due to the cyberattack, Stellantis claims to have lost more than $300 million in revenue because of the halted deliveries and the inability to complete 6,000 Jeep and Ram vehicles.

The courtroom battles continue with a judge granting the injunction, but Yanfeng countersuing to have the suit dismissed. This countersuit is for damages incurred because Stellantis’:

“practice of systematically ordering components and effectively canceling its orders last minute including labor, storage, scrap, and raw material costs unnecessarily incurred by Yanfeng.”

2024 Ram 1500 TRX tackles an off-road trail.
2024 Ram 1500 TRX | Ram

Is a hard line the right line?

Since the creation of Stellantis, formerly FCA, the automaker has held a hard line with suppliers. This has led to court battles between the two sides. The cyberattack on Yanfeng is only the most recent issue to reach courts. The automaker is also in legal battles with Kamax and MacLean-Fogg. Kamax makes fasteners and MacLean-Fogg makes pinions and gears for transmissions. These two companies seem pretty important to Stellantis’ success.

Suppliers are becoming frustrated with the automaker no longer accepting claims for cost increases. The hard lines this automaker chooses to take with its suppliers cause tensions to boil over and could lead to canceled contracts, which isn’t the relationship any automaker desires with suppliers.

Jul 11

Toyota and Stellantis Challenge White House’s Ambitious EV Sales Targets

Automakers Criticize White House’s EV Sales Strategy

Toyota and Stellantis are raising concerns over the Biden administration’s ambitious plan to boost battery-electric vehicle (BEV) sales, arguing that it imposes unrealistic expectations and places undue strain on essential mineral resources. According to their statements submitted to the federal government, the proposed emissions standards for cars and light trucks are excessively optimistic and could marginalize plug-in hybrid vehicles (PHEVs). Both automakers highlight that the plan underestimates the challenges of sourcing rare minerals for batteries, building necessary infrastructure, and managing the high costs associated with BEVs.

Industry Response and Future Outlook

The proposed regulations are set to introduce the most stringent tailpipe emission limits ever, starting with the 2027 model year, aiming for a significant increase in BEV adoption. The Environmental Protection Agency (EPA) anticipates that by 2032, BEVs will account for 67% of new light-duty vehicle sales and 46% of medium-duty vehicle sales, surpassing previous goals set by President Biden. However, critics argue that these targets are overly ambitious, suggesting that the industry may face substantial hurdles in ramping up production and meeting consumer demand for electric vehicles. Despite the controversy, some like Tesla support more stringent regulations, while others, such as Ford, advocate for a gradual transition to avoid abrupt industry shifts.