Electric Vehicle Debacle Sparks Dispute Among Suppliers

Ford's postponement of its electric pickup truck production program has sparked a legal dispute between steering system manufacturer Nexteer and a Tier 2 supplier seeking to recover the resources invested in the failed project.

According to a report in the Detroit press, Swoboda Inc., a German-owned supplier based in Michigan, sued Nexteer last August for “suddenly and unilaterally” canceling an agreement.

Swoboda allocated $3 million in equipment to supply Nexteer with cylindrical collectors for Ford's P800 TE1 program, according to the lawsuit filed in Oakland County Circuit Court, Michigan.

The program's code name refers to the automaker's new full-size electric pickup truck, whose launch has been delayed until at least 2028.

According to a report by Crain's Detroit Business, Swoboda signed the supply agreement in July 2023 and paid $1.4 million for tools and $1.2 million for machinery to manufacture the components, according to the lawsuit, which states that Nexteer has not reimbursed the company.

Both Ford and Nexteer declined to comment on the matter.

This is at least the second case of an automaker vastly overestimating electric vehicle volume projections, leaving suppliers with stranded capital and holes in their budgets.

Months ago, Valeo also sued American Axle & Manufacturing after Stellantis canceled the development of an electric Ram Heavy Duty pickup truck, according to the report.