The automaker sued Yanfeng, alleging the disruption cost it $26 million in damages and $300 million in revenue because it was unable to manufacture 6,000 vehicles without parts from the supplier.
The two parties settled the lawsuit, as well as a countersuit against Stellantis, with a confidential settlement agreement effective Nov. 15, according to an Oakland County Circuit Court document in Michigan.
Judge Victoria Valentine dismissed the complaints with prejudice in a Dec. 11 order dictating that each party bear its own costs related to the lawsuits. No other details of the settlement were listed.
Both Stellantis and Yanfeng declined to comment. Their lawyers either declined or did not respond to requests for comment.
The automaker still has a handful of active supplier lawsuits, including cases against MacLean-Fogg, Kamax and Brose. Those cases center on pricing disputes, which are common in the auto industry — but rarely do they result in litigation.
The relationship between Stellantis and its suppliers has frayed in recent years, especially since the merger between Fiat Chrysler Automobiles and Peugeot SA was announced in 2020 and finalized the following year. The carmaker’s cost-cutting, profit-first agenda also has drawn ire from the UAW and auto dealers.
Following the Dec. 1 resignation of embattled CEO Carlos Tavares, the automaker has been mounting a comeback bid in North America, where operations and profits have suffered in the past year.
Recently announced investment plans in the U.S., including in Detroit and Belvidere, Ill., have prompted celebration from the UAW, while some dealers have expressed optimism about its turnaround plan.
The jury is still out when it comes to supplier relations, though. Several supplier executives have told Crain’s they are hoping for improvement but have yet to see meaningful change.