Court Awards $8.2M to Visteon Corp. Supplier Atek Thermoforming

A plastic molds supplier to Visteon Corp. must pay one of its own component makers more than $8.2 million in a supply chain lawsuit over parts for the Nissan Pathfinder and Xterra compact SUVs.

The Michigan Court of Appeals this week upheld that 2008 judgment in favor of Belleville-based Atek Thermoforming Inc. against Portage-based Summit Polymers Inc., which in turn was a Visteon supplier for the Nissan vehicles.

At issue was an arrangement between Summit and Atek to supply parts for a Nissan components program, due to launch in 2004.

Summit eventually terminated the supplier contract with Atek in 2005 and sued, claiming the Belleville company had “difficulty with quality and timely performance.”

Atek countersued and claimed Summit had changed specifications on parts without notifying Atek, failed to provide Atek with adequate materials, and that some rejected parts were damaged in shipping or by Summit.

A Wayne County court jury awarded Atek about $1.25 million in damages for parts Summit received without paying Atek, plus more than $6.75 million to Atek for lost profits, lost work-in-progress, unpaid inventory, materials and trucking charges.

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