Stellantis Wins in Court but Still Losing Supplier Trust

It’s not unusual for a major automaker to face legal battles, but what’s raising eyebrows across the auto industry is how public and persistent Stellantis’ issues with its suppliers have become.

Earlier this month, attorneys representing Stellantis appeared before the Michigan Court of Appeals in Detroit, where they secured a legal win in a contract dispute with automotive fastener supplier Kamax. The court sided with Stellantis, reaffirming that its purchase orders are enforceable under Michigan law—a decision that follows a similar ruling from the Oakland County Circuit Court.

But while the automaker may have won the courtroom battle, it continues to lose the bigger war: rebuilding trust with its supply base.

This week, the results of the 25th annual North American Automotive OEM-Supplier Working Relations Index Study from consulting firm Plante Moran dropped—and once again, Stellantis landed at the bottom. Among all major automakers surveyed, including Toyota, Honda, General Motors (GM), Ford, and Nissan, Stellantis ranked dead last. And it’s not the first time. In fact, the company has held that unfortunate distinction every year since its 2021 formation from the merger of Fiat Chrysler Automobiles (FCA) and PSA Group.

According to the survey, which gathered insights from 665 executives at 398 Tier 1 suppliers, the companies with the best reputations—Toyota, Honda, and GM—consistently outperform others by offering clearer communication, quicker responsiveness, and treating their suppliers more like partners than adversaries. By contrast, Stellantis is seen as combative, slow to respond, and more focused on protecting its bottom line than nurturing long-term relationships.

Angela Johnson, a Principal at Plante Moran, explained that suppliers aren’t looking for handouts—they want fairness, especially as the industry faces price swings, global instability, and new tariffs. “The top three are doing the things better that enable suppliers to better control their costs,” Johnson said.

For Stellantis, the stakes are higher than just public perception. Detroit-based attorney Dan Rustmann, who represents numerous auto suppliers through his firm Butzel, said litigation between automakers and their suppliers is extremely rare and usually only happens as a last resort. Still, Stellantis has found itself in multiple legal disputes in recent years—Kamax being only the latest.

Rustmann didn’t mince words. “In my experience dealing with many different carmakers … anecdotally Stellantis has been the most difficult of any of the customers that I had to deal with on behalf of my clients,” he said.

While he stopped short of directly connecting these tensions to the quality of vehicles consumers end up buying, he did make a point that hits home: “When you treat a supplier poorly and beat them down and don’t give them relief when they have a cost increase … you’re not going to get the best (technology) from them.”

Stellantis Director, North America Media Relations Jodi Tinson acknowledged the poor rankings and said the company is committed to doing better. “Despite increasing our engagement activities with our suppliers since Stellantis was formed, we recognize that more work is needed to continue building trust,” she said. ”This remains a priority for Stellantis, and we will continue exploring strategic initiatives while working with our suppliers to focus on improving where it matters most.”

The Kamax case was sparked after the supplier tried to renegotiate pricing due to rising production costs. Stellantis refused, and Kamax threatened to stop deliveries before backing down under legal pressure. The result may have favored Stellantis legally, but the optics of dragging a supplier into court during a volatile time in the industry aren’t great.

Bottom line? Stellantis may be winning cases, but until it changes how it works with its suppliers, it risks losing the long-term relationships needed to keep its brands competitive in a fast-changing auto landscape.

Source: USA Today