Chrysler Sues Daimler for Withholding Components

Joshua Duval

It isn't just Chrysler's creditors going after Daimler anymore. Chrysler itself has filed a lawsuit against the German firm, claiming its former parent is refusing to honor contracts to supply partsfor some of Chrysler'smost important vehicles.

In the suit filed last Friday, the Detroit automaker claims that Daimler is withholding parts over a dispute it claims "old Chrysler" settled back in April. According to Daimler, Chrysler owes the German company almost $79 million to compensate for a reduced order of 2.2-liter diesel engines it ordered for European-spec models, like the PT Cruiser. Daimler claims Chrysler didn't buy as many engines as it said it would.

Chrysler's lawsuit says "the volume shortfall payment issue was resolved in an April 17, 2009 pre-petition agreement that settled a number of disputes between Daimler and the old Chrysler." The automaker claims Daimler is refusing to supply components such as steering columns and torque converters to key Chrysler vehicles such as the 300, the Dodge Challenger and Charger, and the Jeep Grand Cherokee.

"Chrysler Group believe that Daimler's misconduct is designed to extort a settlement by wrongfully withholding crucial parts that Daimler has contractually committed to supply to Chrysler Group," said Chrysler spokesman Gualberto Ranieri.

Daimler says the claims are baseless.

"We believe these claims are without merit, and we will defend ourselves vigorously," said Daimler spokeswoman Julia Engelhardt.

Source: Automotive News

I see Chrysler learned nothing from it's aquisition of AMC in 1987. In the automotive business you cannot go it alone, but if you cannot afford to produce the parts yourself, you shouldn't build the car.I propose that GM (which until very recently had the same majority owner as Chrysler) simply sells Chrysler steering columns from the Camaro and others under that platform as well as torque converters for the LX platform. Hell, Fiat knows all about part sharing across brands, why haven't they thought of this yet?

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