By on August 26, 2009

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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6 Comments on “Chrysler Piles onto the Daimler Lawsuit Bandwagon...”


  • avatar
    menno

    Maybe Fiat 500 steering columns will fit (tongue in cheek/extreme sarcasm alert)

    How about buying Mercedes 5 speed automatic type torque convertors from Ssangyong in South Korea? They could use the work and the few workers left now have access to the entire factory (since the strikers gave up their sit-in and molotov cocktail “holiday”). (More tongue in cheek/sarcasm)

    Divorces are messy, aren’t they?

  • avatar
    26theone

    So “new” chrysler renogotiated all their previous contracts or just decided to keep the ones that benefited them?

  • avatar
    texlovera

    Well, what better way to use a “torque converter” than to twist an arm?

  • avatar
    jkross22

    Why is Chrysler worried about having parts available to make cars and SUV’s people aren’t buying?

  • avatar
    KGrGunMan

    I think there is a crashed merc. E class in the pick-a-part, i’ll see if i can get the steering column and torque converter off of it, that should give chrysler a bigger supply of parts then the demand for their cars.

  • avatar
    Monty

    Karma. That’s all I’m gonna say, you know?


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