Auto parts manufacturer BorgWarner risks running out of an important part after its supplier allegedly wreaked havoc on the supply chain by refusing to deliver unless BorgWarner agreed to certain price hikes, according to a newly filed federal lawsuit in North Carolina.
Michigan-based BorgWarner Turbo Systems LLC said in a complaint Friday that Modern Industries Inc. is holding hostage key parts for assembling turbochargers that BorgWarner supplies to equipment companies like John Deere and Caterpillar. This has caused its plant in Arden, North Carolina, to run out of inventory and forced at least one customer to experience line shutdowns.
BorgWarner alleges it will run out of the parts again next month unless the court intervenes.
Allegations of Supply Chain Disruptions
“BorgWarner cannot continue to repeatedly give in to Modern’s extracontractual demands; these demands have caused repeated supply chain disruptions which result in irreparable harm to BorgWarner’s business, its relationship with customers, and even consumers like users of John Deere equipment who are unable to operate their own businesses when critical parts are unavailable,” BorgWarner said.
