Chrysler/Daimler divorce gets ugly
It seemed amicable at the time but now the lawsuits are flyingWhen they agreed to go separate ways in 2007, when Chrysler shacked up with Cerberus Capital Management, Daimler seemed fine to see the back of the American organisation. But now that Chrysler has found a new partner in Fiat, it seems these two former partners aren't happy about it.
Chrysler has filed a lawsuit against Daimler claiming the German firm is denying vital parts that threaten to halt production of several key Chrysler products. The company claims Daimler is holding back steering columns and torque converters for the Chrysler 300C, Dodge Challenger and Charger as well as the 2010 Jeep Grand Cherokee.
"Without court intervention, Daimler's actions threaten to shut down Chrysler's manufacture of key product lines and derail this Court's carefully structured plan to foster the manufacturing, assembly and sale of Chrysler vehicles for the 2010 model year and beyond," the Chrysler lawsuit claims.
Not surprisingly Daimler is denying the charges and a spokeswoman for the company told Reuters that the claim is without merit and the company is willing to continue supplying the parts pending changes to the agreement between the two parties.
Automotive News is also reporting that Daimler is demanding US$78 million relating to a dispute over 2.2-litre diesel engines Chrysler ordered.
Chrysler will obviously be hoping for a speedy conclusion to this dispute but don't be surprised if this drags on for a while.
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