Stellantis wins court case against Kamax, but ranks worst for supplier relations

CDG News Alert (1 min. read)

Driving the news: Stellantis $STLA ( ▼ 1.67% ) just won a court case against supplier Kamax, but it's not exactly cause for celebration. A new study of 665 supplier executives ranked Stellantis worst among all major automakers for working relationships.

For context: The Michigan Court of Appeals sided with Stellantis after Kamax tried to renegotiate pricing due to rising costs. When Stellantis refused, Kamax threatened to halt deliveries before backing down under legal pressure.

Yes but, this marks the fourth straight year Stellantis has ranked dead last in supplier relations. And Detroit attorney Dan Rustmann, said Stellantis has been "the most difficult of any of the customers" he's dealt with, warning that "when you treat a supplier poorly and beat them down... you're not going to get the best technology from them." (via Detroit Free Press)

What we’re watching: Stellantis admits "more work is needed to continue building trust," but winning courtroom battles while losing supplier confidence could seriously undermine their ability to access the innovation needed to stay competitive.

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