BorgWarner vs Supplier: Turbocharger Supply Chain Dispute

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The slowdown prevented BorgWarner from making turbochargers for John Deere, which John Deere allegedly needed to repair equipment in the field, according to the complaint. “These turbochargers were required for John Deere to repair tractors for consumers so they could continue operation of their businesses,” BorgWarner said. “Every day that Modern refused to ship parts was another day that these consumers were unable to operate their businesses, causing widespread economic harm.”

BorgWarner vs Supplier: Breach of Contract Claims

BorgWarner said it tried again in June to place a “spot buy” order relenting to Modern Industries’ demands. But it said the supplier rebuffed them, offering only to ship the number of parts already manufactured. The suit alleges BorgWarner had to reduce the number of parts requested for Modern Industries to eventually accept the “spot buy” order. According to BorgWarner, Modern Industries has nonetheless since rejected its latest “spot buy” purchase order, meaning it will again run out of the much-needed part by Aug. 14.