Stellantis pricing disputes with suppliers imperil key Jeep, Ram products

U.S. production of some important Stellantis vehicles is at risk because of pricing disputes with two suppliers.

The battles have disrupted some shipments in the last two months, at times halting production of the popular Jeep Wrangler.

Tier 1 supplier Kamax, a German fastener maker, stopped sending parts in February, according to Crain’s Detroit Business, an affiliate of Automotive News. This led to a temporary shutdown of operations at Toledo Assembly Complex that builds the Wrangler, Wrangler 4xe and Gladiator. A March 2 court ruling forced Kamax to resume shipments.

MacLean-Fogg Component Solutions, an Illinois supplier with plants in Michigan, provides pinions and gears for transmissions in key vehicles, including the Ram 1500, Jeep Wrangler and Grand Cherokee, a critical product that saw a 9.5 percent sales jump in 2023 as overall brand sales fell 6.1 percent.


The supplier, seeking a 26 percent price increase, decided to cut off shipments in March until the two sides worked out a deal. This appeared to happen in early April, but MacLean-Fogg said Stellantis didn’t follow through on paying, so shipments have stopped again and another potential shutdown looms. Stellantis said its Kokomo, Ind., plants that use the parts were running Tuesday.

Here are some of the supply chain issues facing Stellantis:

  • Supplier mutiny fears: Other suppliers seeking price hikes could pause shipments. Stellantis said Kamax is “one of many suppliers” threatening to stop shipping if not granted a price increase, Crain’s Detroit Business reported. The automaker told a judge, who ultimately ruled in Stellantis’ favor, that not granting an injunction in the Kamax case could cause a “domino effect” of suppliers withholding parts.
  • Ram 1500 launch: The freshened 2025 Ram 1500 is rolling out now, so any delays to production would be detrimental to the launch of the company’s top seller in the U.S. In 2023, only the Ford F-Series, Chevrolet Silverado and Toyota RAV4 outsold Ram’s pickup line, according to new-vehicle registration data from S&P Global Mobility. Stellantis said it ramped up production in the first quarter to churn out the latest 1500, which has improved tech offerings and a refined interior.
  • Grand Cherokee momentum: The Grand Cherokee is Jeep’s volume champion, but production disruptions could seriously hamper it in a competitive segment. Sales were flat in the first quarter. The vehicle’s reach has expanded in recent years with the introduction of a three-row L model and 4xe plug-in hybrid model. Two-thirds of people buying the Grand Cherokee L are new to the brand, Jeep said, as are 58 percent of those purchasing the 4xe.
  • Wrangler versus Bronco: The Wrangler was updated for the 2024 model year as it vies with the Ford Bronco. Sales have been slipping for the off-road trail cruiser, and a prolonged production stoppage could give Bronco an opening to capitalize on. Wrangler sales were down 14 percent in 2023 and off 12 percent in the first quarter. Toledo Assembly Complex had moved on from the UAW strike when Kamax held back on parts shipments in February. More interruptions in the months ahead may result in the Wrangler ceding ground to rival Bronco.
  • Supplier relations: Stellantis has been stuck at the bottom of the North American Automotive OEM-Supplier Working Relations Index Study, although it did show improvements in 2023. Whatever progress it has made could be in trouble if the company can’t find a way to address the pricing demands of its supplier partners. Some suppliers told Crain’s Detroit Business they have considered ending their business with Stellantis.


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