Stellantis has taken Ontario-based Peterson Spring to court over a pricing dispute involving brake rotors that threatens to idle two Michigan assembly plants.
According to court filings, Peterson Spring claims it cannot afford to continue shipping brake rotors from its Woodstock, Ontario facility at the current contracted price, which the supplier says is below production cost. The company has reportedly threatened to halt shipments unless Stellantis agrees to double the contracted price—representing a $77 million USD annual increase.
Stellantis argues the demand constitutes extortion and is seeking an Ontario court order to appoint an independent company to manage the Woodstock operation and ensure continued parts shipment. The automaker warned that any supply disruption from its sole supplier for this component would cause “massive and immeasurable” damage.
The case highlights critical vulnerabilities in automotive supply chains. Stellantis stated that replacing Peterson Spring would require new parts to pass safety testing—a process that could take up to two years.
Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association (APMA), noted the dispute demonstrates supply chain realities often overlooked in reshoring discussions. “Here’s a world-leading automaker saying that for a very simple part, a rotor, it would be minimum 24 months” to source elsewhere, Volpe said.
[Source: CBC News, Chris Ensing – includes video breakdown]
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