US car maker takes legal action against former parent company
27 August 2009

Chrysler is suing former parent company Daimler in a bid to force it to deliver parts for its cars.

In its court filings, made last week, Chrysler asked for the court to prohibit Daimler from suspending shipments of the engines, steering columns and torque converters.

It also asked the court to decide whether it must pay Daimler a higher price for the engines if it buys fewer than originally agreed.

The dispute stems from Chrysler reducing its order for parts at short notice - something Daimler feels it was not entitled to do unless a penalty fee was paid.

"Daimler's bad faith conduct and contractual breaches threaten to derail (Chrysler) and send devastating ripple effects through the automotive industry," Chrysler's court filing reads.

However, Chrysler has declined to say which cars would be affected by the non-delivery of parts.

A Daimler spokesman told AUtomotive News: "We believe these claims are without merit, and we will defend ourselves vigorously."

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It is the second lawsuit Chrysler has issued against Daimler in recent weeks, with a previous filing claiming Daimler diverted assets worth around £5.5 billion from Chrysler just before selling 80.1 per cent of the company to Cerberus Capital Management in August 2007.

The filings also accused Daimler of selling Chrysler's World Headquarters and Tech Center for $325 million (£200m), less than prevailing market prices, two years ago.

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26 August 2009

It appears to me that Chrysler has been treated pretty badly by Daimler over the years, and now they appear to be putting the boot in again. The sooner Chrysler arent dependent on Daimler for anything, the better. But cars based on Fiats instead of Mercs dont sound too appealing to me.

27 August 2009

[quote artill]It appears to me that Chrysler has been treated pretty badly by Daimler [/quote]

Both sides have been treated badly by each other...Daimler lost its great reputation (Merc suffered quite a few quality issues because of the merger, and only now are they really getting up to their feet gain).

 

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27 August 2009

A marrage of two equals ?

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