Generac has been sued by one of its suppliers, Spartronics out of Williamsport, Penn., in state and federal courts for $44 million over a supply of generator parts. According to a June 12 report from the Milwaukee Journal Sentinel, Spartronics claims that Generac "forced" the company to pre-order supplies and parts during the pandemic and then later refused to pay when sales fell below forecasts.
Spartronics claims it owes 98 suppliers millions of dollars in generator parts as a result. Some of the suppliers have sued Spartronics or put the company on "global shutdown for all materials."
“Spartronics’ global suppliers are critical for ensuring it has the parts needed to serve its industry-leading customers in the defense and medical sectors, and Spartronics will not sit by idly while Generac refuses to pay for custom, non-reusable and other materials that they demanded be produced,” Christopher Clark, an attorney for the company said in a statement.
“All told, Generac’s actions threaten roughly $450 million in projected Spartronics revenue and have caused immediate and devastating harm to Spartronics’ existing commercial relationships, credibility, and goodwill,” the complaints state.
Rural Lifestyle Dealer has reached out to Generac for a statement on the lawsuit.
