Eric D. Lawrence, Detroit Free Press
4 min read
Attorneys representing Stellantis were in a courtroom in Detroit earlier this month, arguing a case before the Michigan Court of Appeals.
That hearing, involving the contract between the company’s U.S. operating arm known as FCA US LLC and supplier Kamax, resulted in a decision that went in the automaker’s favor.
While it’s not unusual for automakers to deal with lawsuits, industry watchers say it is unusual for automakers and their suppliers to engage in public fights.
But it’s not a new story for Stellantis, and the challenges the owner of the Jeep, Ram, Chrysler, Dodge and Fiat brands has had in dealing with its suppliers was on display again this week with the release of a supplier sentiment survey.
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Here again, Stellantis stood out, ranking last among the automakers surveyed in the 25th annual North American Automotive OEM-Supplier Working Relations Index Study from Plante Moran (OEM is an abbreviation used to refer to automakers as "original equipment manufacturers"). In order, from best to worst, Toyota, Honda and General Motors each saw their scores increase over last year, while Nissan, Ford and Stellantis saw their scores drop. Other automakers, including Tesla, don't participate.
The order of rankings is unchanged from last year. Stellantis, however, has had the worst score since 2021 — the same year it was formed from the merger of Fiat Chrysler Automobiles and Peugeot maker PSA Group — and going back earlier, the automaker had the worst, next-to-worst or tied-for-worst score since 2008.
This year’s results also represent the largest gap since 2008 between the top automaker and the bottom one, according to Dave Andrea, principal in Plante Moran’s Strategy and Automotive and Mobility Consulting Practice. The results are based on responses from 665 supplier executives from 398 Tier 1 suppliers at a time when the auto industry deals with volatility from changing market conditions and is now facing the uncertainty caused by tariffs.
The companies that do well on the survey tend to be known for better communication, responsiveness and treating their suppliers like partners.
“The top three are doing the things better that enable suppliers to better control their costs, achieve equitable cost-sharing and better navigate uncertainty,” according to Angela Johnson, a principal in Plante Moran’s Management Consulting, Supplier Relations Analytics. She said suppliers aren’t expecting automakers to bear all the costs.
