“These are tight markets for everybody, and most [automakers] have taken the tack to partner on inflationary cost pressures with a healthy supply base and say, ‘Look, our interests are mutual,’ ” Volpe said.
Volpe wondered whether the new terms are because of a change in corporate culture resulting from the merger last year between Fiat Chrysler Automobiles and PSA Group and a push to grow Stellantis.
“It’s probably driven by accounting rather than anybody doing strategic relationship growth,” he said.
In the past, automakers have used their buying power to leverage concessions, Lassaline-Berglund said. As an example, she cited “five by three,” where suppliers were expected to give back five per cent in savings every three years; or efforts by [automakers] to dictate internal production costs. Some suppliers went bankrupt trying to meet those standards, Lassaline-Berglund said.
Source: https://www.autonews.com/suppliers/new-stellantis-supplier-terms-irk-industry