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Automotive · Dispute · Stellantis · Supply Chain
Stellantis has halted production of its Jeep Cherokee at the Toluca, Mexico factory since March 14 due to a payment dispute with supplier ZF Chassis Modules, despite Stellantis previously paying over $26 million and agreeing to price increases.
The Wall Street Journal reports that the core of the disagreement involves ZF Chassis Modules' demands for contract price hikes. Stellantis confirms it made substantial payments and concessions to prevent the production stoppage.
A court has now ordered ZF Chassis Modules to resume component deliveries, which establishes a clear path for production to restart soon. This legal intervention mitigates prolonged operational disruption for Stellantis and ensures the continued supply of critical components.
