Latest news with #PlanteMoran
Yahoo
20-05-2025
- Automotive
- Yahoo
Stellantis struggles to rebuild supplier trust despite legal win
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. Automaker advertising: Ford and Stellantis address tariff turmoil with bold 'made-in-America' ad campaigns 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. Stellantis provided a statement through spokeswoman Jodi Tinson acknowledging that it has work to do: "Despite increasing our engagement activities with our suppliers since Stellantis was formed, we recognize that more work is needed to continue building trust. 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." Regarding the Kamax suit, which stems from an Oakland County court case, the automaker said it was pleased 'a court has once again ruled that our purchase order contracts are enforceable requirements contracts. As we've stated in the past, it is never our intent to use the court system to resolve such disputes; however, certain situations unfortunately require it. Stellantis remains committed to working with our suppliers, so that we can continue to build the vehicles that our customers desire." The recent ruling from the Michigan Court of Appeals deals with Kamax's effort in 2023 and 2024 to push the automaker to renegotiate the prices it pays for automotive fasteners because, Kamax said, the costs to produce the parts had skyrocketed. Kamax later said it would stop deliveries but relented following a decision in Oakland County Circuit Court, and the case eventually made its way to the Court of Appeals. It's one of numerous court cases involving Stellantis and its suppliers in recent years. Detroit-based attorney Dan Rustmann, whose firm, Butzel, represents numerous suppliers, called litigation between suppliers and automakers very unusual and typically a last resort. Rustmann, who noted that he represents 'a lot of Tier 1 suppliers,' said that '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.' In times of rising costs, for instance, some automakers are more willing than others to provide relief, he said. 'In my experience, Stellantis has not been so willing and that's why they're facing all this litigation and disruption from their supply chain,' he said. Rustmann said his firm's experience aligns closely with the results of the Plante Moran survey. Although Rustmann said he can't make a direct connection to the impact on the end product, meaning the vehicle that a consumer purchases, he said it's common sense to treat others fairly. '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,' he said. Contact Eric D. Lawrence: elawrence@ Become a subscriber. Submit a letter to the editor at This article originally appeared on Detroit Free Press: Stellantis struggles to rebuild supplier trust despite legal win Sign in to access your portfolio
USA Today
20-05-2025
- Automotive
- USA Today
Stellantis struggles to rebuild supplier trust despite legal win
Stellantis struggles to rebuild supplier trust despite legal win Show Caption Hide Caption Stellantis: The automaker's history, legacy Explore the history of Stellantis, the automotive giant formed in 2021 through the merger of Fiat Chrysler Automobiles and PSA Group. Stellantis ranked at the bottom of an annual survey of supplier relations. Toyota, Honda and General Motors saw their scores improve. 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. Automaker advertising: Ford and Stellantis address tariff turmoil with bold 'made-in-America' ad campaigns 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. Stellantis provided a statement through spokeswoman Jodi Tinson acknowledging that it has work to do: "Despite increasing our engagement activities with our suppliers since Stellantis was formed, we recognize that more work is needed to continue building trust. 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." Regarding the Kamax suit, which stems from an Oakland County court case, the automaker said it was pleased 'a court has once again ruled that our purchase order contracts are enforceable requirements contracts. As we've stated in the past, it is never our intent to use the court system to resolve such disputes; however, certain situations unfortunately require it. Stellantis remains committed to working with our suppliers, so that we can continue to build the vehicles that our customers desire." The recent ruling from the Michigan Court of Appeals deals with Kamax's effort in 2023 and 2024 to push the automaker to renegotiate the prices it pays for automotive fasteners because, Kamax said, the costs to produce the parts had skyrocketed. Kamax later said it would stop deliveries but relented following a decision in Oakland County Circuit Court, and the case eventually made its way to the Court of Appeals. It's one of numerous court cases involving Stellantis and its suppliers in recent years. Detroit-based attorney Dan Rustmann, whose firm, Butzel, represents numerous suppliers, called litigation between suppliers and automakers very unusual and typically a last resort. Rustmann, who noted that he represents 'a lot of Tier 1 suppliers,' said that '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.' In times of rising costs, for instance, some automakers are more willing than others to provide relief, he said. 'In my experience, Stellantis has not been so willing and that's why they're facing all this litigation and disruption from their supply chain,' he said. Rustmann said his firm's experience aligns closely with the results of the Plante Moran survey. Although Rustmann said he can't make a direct connection to the impact on the end product, meaning the vehicle that a consumer purchases, he said it's common sense to treat others fairly. '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,' he said. Contact Eric D. Lawrence: elawrence@ Become a subscriber. Submit a letter to the editor at
Yahoo
20-05-2025
- Automotive
- Yahoo
Stellantis struggles to rebuild supplier trust despite legal win
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. Automaker advertising: Ford and Stellantis address tariff turmoil with bold 'made-in-America' ad campaigns 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. Stellantis provided a statement through spokeswoman Jodi Tinson acknowledging that it has work to do: "Despite increasing our engagement activities with our suppliers since Stellantis was formed, we recognize that more work is needed to continue building trust. 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." Regarding the Kamax suit, which stems from an Oakland County court case, the automaker said it was pleased 'a court has once again ruled that our purchase order contracts are enforceable requirements contracts. As we've stated in the past, it is never our intent to use the court system to resolve such disputes; however, certain situations unfortunately require it. Stellantis remains committed to working with our suppliers, so that we can continue to build the vehicles that our customers desire." The recent ruling from the Michigan Court of Appeals deals with Kamax's effort in 2023 and 2024 to push the automaker to renegotiate the prices it pays for automotive fasteners because, Kamax said, the costs to produce the parts had skyrocketed. Kamax later said it would stop deliveries but relented following a decision in Oakland County Circuit Court, and the case eventually made its way to the Court of Appeals. It's one of numerous court cases involving Stellantis and its suppliers in recent years. Detroit-based attorney Dan Rustmann, whose firm, Butzel, represents numerous suppliers, called litigation between suppliers and automakers very unusual and typically a last resort. Rustmann, who noted that he represents 'a lot of Tier 1 suppliers,' said that '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.' In times of rising costs, for instance, some automakers are more willing than others to provide relief, he said. 'In my experience, Stellantis has not been so willing and that's why they're facing all this litigation and disruption from their supply chain,' he said. Rustmann said his firm's experience aligns closely with the results of the Plante Moran survey. Although Rustmann said he can't make a direct connection to the impact on the end product, meaning the vehicle that a consumer purchases, he said it's common sense to treat others fairly. '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,' he said. Contact Eric D. Lawrence: elawrence@ Become a subscriber. Submit a letter to the editor at This article originally appeared on Detroit Free Press: Stellantis struggles to rebuild supplier trust despite legal win
Miami Herald
19-05-2025
- Automotive
- Miami Herald
Auto supplier sentiment dropped on relationships with these carmakers
Auto supplier sentiment on relationships with Ford Motor Co., Chrysler parent Stellantis NV and Nissan Motor Co. Ltd. dropped year-over-year - results that could challenge the automakers' ability in navigate shifting trade policies and their impacts on supply chains, researchers said. Accounting firm Plante & Moran PLLC on Monday released its 25th annual Working Relations Index that surveyed 665 executives from 398 Tier 1 suppliers from mid-February to mid-April. That came amid changes President Donald Trump was making on tariffs, particularly on Canada and Mexico. He has since then instituted 25% duties on imported vehicles and certain auto parts. A strong ability to collaborate and communicate with suppliers, the researchers said, will aid companies like General Motors Co., Toyota Motor Corp. and Honda Motor Co. Ltd. - which saw increases in their supplier sentiment - to work through potential disruptions and challenges that may arise from the tariffs. "The suppliers put their best resources on programs that have the stronger relationships," said Angela Johnson, principal at Plante Moran Management Consulting for supplier relations analytics, "and it's the relationships that really allow the three who came out at the top to be able to better traverse the disruption." The higher the score on the 400-point index, the more positive the sentiment of suppliers. Toyota topped the index with a score of 386, an increase of 18 points from last year. Honda at 347 gained three points. GM added 11 for 310. Nissan, meanwhile, finished at 249, down six points. Ford also fell six points to 191 for a decline of 70 points over the past decade. Stellantis declined by 11 to 141 for a decrease of 83 points over the past decade. Automotive suppliers contribute 60% to 80% of the value added to a vehicle, noted Dave Andrea, a principal in Plante Moran's strategy and automotive and mobility consulting practice. With automakers sharing many suppliers, having a positive working relationship can be a competitive advantage, Johnson said. "When you share a lot of suppliers, you want to be the OEM that gets the first-to-market innovation when it lines up to your strategy, and having good relationships manages to allow the OEMs to lower their operating costs because of working more collaboratively together," she said. "They can keep their production running more consistently. They can get better prices on the products that they're buying." That can translate to improved profit margins, a stronger stock valuation and dividend, better affordability and higher quality, Andrea added. Plante Moran this year plans to look at what each point on its indexes represents in terms of dollar value. Tariffs now also may give automakers that have struggled with supplier relations a chance to improve trust in their partnerships, Andrea added, by being more predictable, consistent and fair. Paul Thomas, auto supplier Robert Bosch Gmbh's president in North America and of Bosch Mobility America, said last week that how the company is engaging with its customers about tariffs looks different across the board. He declined to go into specifics. "We've been doing this for a while," he said during a virtual briefing, "whether it's been (a shortage of) semiconductors, whether it's been different types of materials, we always can find a way to make it great for the American consumer." Toyota, Honda, and GM posted gains in the index despite challenges posed by a bumpy road to electric vehicle adoption - which has led automakers to frequently adjust production plans - and interest rates that created cost concerns for consumers. "They," Johnson said of the top three automakers, "had more equitable and fair cost sharing and risk sharing, and they had better outcomes in terms of OEM-supplier strategic alignment. They're communicating better, and suppliers know where they fit in their future plans." GM, notably, has increased its index score by 86 points over the past decade compared to 50- and 17-point increases at Toyota and Honda, respectively, the study highlighted. Communication approaches and transparency with suppliers have improved across the company during that time, Johnson said, despite multiple executive changes. "They're starting to institutionalize those types of attributes of consistency and predictability," Andrea said about GM. He noted the company keeps the index measure in front of its purchasing directors as a constant reminder of its significance. "While this year marks our highest score to date," Jeff Morrison, GM's global chief procurement officer, said in a statement, "we look forward to building on our commitment to open communication, collaboration, and continuous improvement initiatives in an effort to strengthen our supply chain and deliver world class vehicles for our customers." Ford had small decreases across a wide swath of areas that the researchers asked suppliers to rate, Johnson said. The vendors criticized the Dearborn automaker's communication of its long-term strategy, product plans and volume plans. Ford in August canceled a three-row electric SUV program and delayed launches of other forthcoming EVs. Another critique, Johnson said, was organizational complexity, particularly from Ford having part of its purchasing organization in India. The distance creates communication challenges for some suppliers when trying to resolve issues or get paid, Johnson said. The longer it takes to communicate back and forth and get responses, Andrea said, the more unnecessary costs there are. "The buyers could think that they're making themselves more accessible, or top management can be thinking they may be, but it's offset," Andrea said. "It's: Get me the real transactional efficiency that day in and day out really adds up to serve Ford Motor Company. The other pieces are nice, but they're not as tangible." In 2023, Ford hired Liz Door, a former GM and Whirlpool Corp. executive, as its chief supply chain officer in an effort to address quality and supplier relations issues. "As part of our Ford+ plan transforming Ford into a higher growth, higher margin, more capital efficient and more durable business, we are working to strengthen and improve how we work with our suppliers," Ford spokesperson Mike Levine said in a statement. "Our goal is fostering resilient, best-in-class relationships that will benefit both Ford and our valued suppliers." Stellantis saw sales and earnings declines in 2024 as the automaker struggled with too-high prices, poor vehicle mix and leadership changes that peaked in December with the resignation of CEO Carlos Tavares. Big efforts to reduce dealer inventory in the fourth quarter also likely were fresh in supplier executives' minds, Andrea said. "One of the elements they did was to reduce, or even shut down production, to get those inventories in line," he said. "That gives us an example of how when you go to extremes and you push production to get profits, and the rest of the organization and strategy isn't balanced, you ultimately pay the cost. I think that overshadowed what Stellantis was putting in place." Stellantis showed improvement in areas reflecting stronger interactions between the various departments of the company, such as the impact of engineering changes, accessibility of suppliers to its engineers, and meeting quality objectives. Andrea noted that Stellantis' engineering employees and leaders have made more appearances with workers in purchasing at events and networking sessions. "As little as it is, it reflects there may be changes going on," Andrea said. In a statement, the automaker recognized that more is needed to continue building trust, despite efforts to increase engagement with its suppliers since Stellantis was formed from the merger between Fiat Chrysler Automobiles NV and French rival Groupe PSA in 2021. "This remains a priority for Stellantis," spokesperson Jodi Tinson said in a statement, "and we will continue exploring strategic initiatives while working with our suppliers to focus on improving where it matters most." Nissan's drop, meanwhile, had to do with concerns about its corporate health in light of Nissan and Honda abandoning discussions for a full-scale merger last year, leadership changes, and poor quarterly financial results in recent months, the researchers said. "We deeply value the strong relationships we've built with our supplier partners and consider them essential members of our extended team," Nissan spokesperson Amanda Plecas said in a statement. "We will closely review the study's findings and continue engaging with our suppliers to strengthen alignment and support mutual success." For leading the index, Toyota said that despite organizational changes in 2024, it continued to emphasize relations with suppliers as a top priority. "We are encouraged to see that our efforts were reflected positively in the WRI study yet again," said Ryan Grimm, group vice president of purchasing supplier development in North America. "Toyota will continue to work with each supplier as a trusted long-term partner in support of producing and delivering the safest and highest quality vehicles to our customers." Honda also celebrated its year-over-year growth in the index: "Open and honest communication is essential to create trust with our suppliers," spokesperson Chris Abbruzzese said in a statement, "and we plan to build on this success by continuing to advance our supplier relationships moving forward." Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Forbes
08-04-2025
- Automotive
- Forbes
Precise Positioning Could Accelerate Autonomy, Industry Panel Predicts
Ford Fusion equipped with Swift Navigation Skylark positioning system at the American Center for ... More Mobility, Ypsilanti, Michigan. On a closed course, as soon as the driver gets behind the wheel of a specially-equipped Ford Fusion all the windows are covered. With no physical view of the course, the driver will attempt to navigate its twists and turns using only an image on a tablet positioned above the steering wheel. After some period of adjustment and about a dozen crushed traffic cones, it's a clean crawl through a series of wide and tight turns and s-curves. It feels like a video game but the exercise at the American Center for Mobility near Ypsilanti, Michigan this week was a demonstration of Swift Navigation's Skylark Precision Positioning System. By using what's called global navigation satellite system, or GNSS, Swift's technology aims to provide vehicle location accuracy within one centimeter, by correcting any errors caused when satellite signals travel from space through the atmosphere to a series of thousands of ground reference stations around the world, according to the company. It's a cloud-based software solution that works in concert with properly-equipped vehicles. Swift Navigation image representing the difference in the accuracy of its system, from others. The ... More orange lines represent the correct driving course. The others show how far off other systems could be. Not to be confused with the more familiar global positioning system, or GPS, which is a U.S.-owned system, GNSS is actually the umbrella term for all global navigation systems. 'GNSS in the vehicle, is the only absolute position sensor that tells you where you are in the world, but it's part of the larger suite of sensors in the vehicle,' explained James Tidd, vice president, systems engineering at Swift during a panel discussion of the future of vehicle autonomy at the ACM on Tuesday, presented by the Society of Automotive Analysts. Panel discussing the future of vehicle autonomy at the American Center for Mobility, Ypsilanti, ... More Michigan, April 8, 2025. Seated left to right: Moderator Gary Vasilash; Mark Barrott, Plante Moran; Curtis Hay, General Motors; Daniela Steinbacher, Bosch; James Tidd, Swift Navigation. Indeed, as the auto industry looks to improve advance driver safety systems and increasing self-driving capabilities, the demand for more precise accuracy in vehicle positioning has become more acute. The challenges, however range from technology to budgets to competitive secrecy, panel members pointed out. 'We don't have a standardization, and I think this is a very crucial topic,' said Daniela Steinbacher, program manager at Bosch. 'Everybody's doing their own stuff.' Stuff costs money. Mark Barrott, a partner at management consultants Plante Moran warned with average vehicle transaction prices already around $50,000, adding cost for technology, as advantageous as it might be, is probably not a good business decision. 'I cannot put this technology into a vehicle to force another $2,000, $3,000 on top of that, the price of that vehicle,' said Barrott. 'It has to be affordable. It has to be useful, and my consumer has to understand how to use it, what benefit they're going to get. Self-driving systems such as General Motors's SuperCruise are becoming more popular, providing a break for drivers, as long as they keep their eyes on the road most of the time. However, the systems are only as safe and accurate as their programming, sensors and information ingested about the roads and environment on which the vehicles are traveling. Feedback from customers is they don't want SuperCruise to work in some environments, they want it to work everywhere, said technical fellow at GM, Curtis Hay. 'So as we expand automated driving to new environments, what happens? We see more trees. We see more buildings,' said Hay. 'We've got to solve those, they become more important problems to tackle the automated drive down highways.' About 70% of auto brands are currently using GNSS, according to Tidd and Swift is working with around 20 automakers. As both urgency and demand for more effective and accurate autonomy and ADAS technology increases, Tidd stresses it's imperative to look outward and upward. 'I think what's happened is people are now treating the intelligent transport system as a much larger system,' Tidd advised. 'You can no longer look at four wheels and a body of chassis and say, that's my system. You have to include the upper atmosphere, the surrounding environments, the road conditions.' Indeed it must at least be accurate enough for a driver to get though a course without crushing a dozen cones.
