Project Delay Triggers Chain Reaction
In August 2024, German parts supplier Swoboda filed a lawsuit in Oakland County Circuit Court against its tier-one supplier Nexteer, seeking to recover $3 million in invested costs. The lawsuit stems from the ongoing delays of Ford Motor Company’s next-generation full-size electric pickup truck project.
Swoboda entered into a supply agreement with Nexteer in July 2023, investing $1.4 million in tooling equipment and $1.2 million in machinery to produce cylindrical headers for Ford’s P800 TE1 program. The program codename refers to Ford’s next-generation full-size electric pickup truck, considered the successor to the F-150 Lightning.
In March 2024, more than a year after the suppliers entered into their agreement, Nexteer “suddenly and unilaterally” canceled the order. Swoboda demanded payment from Nexteer in June after an invoice was “inexplicably denied,” issued a final demand on July 25, and ultimately filed the lawsuit in August 2024.
Ford’s Major EV Strategy Overhaul
Ford’s electric vehicle strategy is undergoing a major transformation. Ford has delayed production of this full-size electric pickup from 2027 to 2028, while also postponing production of the E-Transit electric van from 2026 to 2028.
Ford projects losses of $5.5 billion in its electric vehicle and software division for 2025 and has already scrapped plans for a three-row electric SUV. The TE1 project at Ford’s Tennessee Electric Vehicle Center originally planned for an annual output of approximately 300,000 units, but the target has now been reduced to fewer than 100,000 units.
Ford is pivoting to develop a smaller, more affordable electric vehicle platform, planning to launch a compact pickup truck priced under $30,000, expected in 2027. Ford CEO Jim Farley stated: “The pure EV market in the U.S. seems to us very clear: small vehicles used for commuting and around town.”
Suppliers Face Survival Crisis
The lawsuit documents reveal that Nexteer had promised in writing that if Swoboda failed to secure a Generation 2 program after investing in engineering and machinery equipment, Nexteer would cover Swoboda’s costs.
Steven Wybo, senior managing director at industry consulting firm Riveron Consulting, noted: “The next level of suppliers, under a billion dollars in revenue, those guys are desperate right now because if you had 10-15 percent of business tied up in BEV, and now it’s not launching, or is a fraction of the quoted volumes, you don’t have the luxury of the capital markets or a bunch of cash sitting around to weather it, so you’re getting aggressive.”
Wybo predicts: “We’re in the thick of it. It’s definitely not passed. I think it’s only going to get worse before it gets better because every OEM is reevaluating their product strategy.”
Stellantis Case: Similar Lawsuits Proliferate
When Stellantis canceled its all-electric Ram heavy-duty pickup truck project, supplier Valeo sued American Axle in January 2024, seeking $25 million in damages. Between 2022 and 2024, Valeo spent tens of millions of dollars developing electric motors and inverters for American Axle’s electric beam systems, originally planned for 2027 heavy-duty Ram trucks.
In early 2023, American Axle entered into a “comprehensive agreement” with Valeo to design and manufacture electric motors, inverters, and software modules. However, after 13 months, American Axle canceled the program and refused to reimburse Valeo.
The lawsuit highlights a dramatic strategic reversal by Stellantis. Three years ago, the automaker was confident enough about EVs to source parts for an electric heavy-duty vehicle—a segment considered difficult to electrify at the time. In September 2025, Stellantis formally canceled plans to launch the all-electric Ram 1500, instead focusing on range-extended hybrid full-size pickups.
Industry-Wide Electric Vehicle Setbacks
Ford F-150 Lightning production in Dearborn has fallen dramatically below projections, while General Motors has twice delayed the launch of its Orion Assembly plant dedicated to producing electric Silverados and Sierras, primarily due to lack of demand. This has left many suppliers facing stranded capital and concerns about return on investment.
Nexteer is a globally integrated automotive parts supplier with majority Chinese ownership, headquartered in Auburn Hills, Michigan, with a large manufacturing plant in Saginaw, Michigan. Nexteer spokeswoman Allison Vincent stated: “While we cannot comment on the specifics of ongoing litigation, we value our supplier relationships and remain committed to a timely and equitable resolution.”
Automakers including Ford and General Motors have dramatically overshot sales projections, leaving many suppliers facing stranded capital and budget holes. These lawsuits indicate that as the automotive industry reevaluates its electrification strategy, financial pressure on the supply chain is likely to intensify.
