Yikes, Stellantis faces another massive problem. It decided to cancel its plans for the electric Ram heavy-duty truck and two auto parts suppliers are upset. They’re battling over $25 million to cover the costs of developing electric truck parts. 

Stellantis causes $25 million for canceling the electric Ram heavy-duty truck

As the economy faces changes, Stellantis has been revising its plans to correct declining sales. As a result, the automaker decided to scrap its plans to build an electric Ram heavy-duty truck. 

On that note, Ford has also said that large electric vehicles won’t turn a profit. It’s probably a good financial move. However, now Stellantis may have caused a $25 million lawsuit for abandoning the massive EV truck. 

According to Yahoo, Valeo North America Inc. and its French and German subsidiaries are suing America Axle & Manufacturing over the refusal to cover the costs of an EV program. 

The program was sourced and canceled by Stallantis, according to the lawsuit filed in January with Oakland County Circuit Court in Michigan.

Valeo spent millions to develop electric motors and inverters in Detroit. The parts for got American Axle e-beams that were planning to be used in 2027 heavy-duty Ram trucks.

American Axle attorneys filed a motion to dismiss the case. Reportedly, it claims that the suppliers never had an enforceable contract, so no breach of contract has occurred. 

But in 2023, it entered an integrated and comprehensive agreement to have Valeo design and manufacture e-motors, inverters, and software modules. The program was canceled 13 months later with the refusal to reimburse Valeo. 

Stallantis has declined to comment on the matter but American Axle is the strategic driveline supplier for Ram trucks through 2030.