Amidst a lawsuit by Old Chrysler creditors accusing Daimler of stripping Chrysler’s assets comes another suit against the German automaker, this time by New Chrysler. Automotive News [sub] reports that Chrysler actually owes Daimler about $78 million in volume shortfall payments for 2.2-liter diesel engines supplied by Daimler. Because Chrysler is balking on those payments, Daimler stopped delivery of steering columns and torque converters, as a way of pressuring Chrysler to make good on its payments. But Chrysler claims that “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.” As a result, “Chrysler Group believes 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,” say ChryCo spokesfolks. Grand Cherokee production at Chrysler’s Jefferson North assembly plant in Detroit is threatened by the supply dispute, as is Dodge Charger and Challenger and Chrysler 300/300C production in Brampton, Ontario.
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