• Feb 12, 2009
It seems like all the news coming out about Chrysler these days is of the bad variety and today is no different. The ailing automaker has just been sued by one of its suppliers, Faurecia Interior Systems Inc. of Auburn Hills to the tune of $110 million. Faurecia currently provides interior systems like center consoles, instrument panels and door panels for the PT Cruiser, Chrysler Sebring (at right), Dodge Avenger, Jeep Liberty and Dodge Nitro.
Faurecia is claiming that Chrysler hasn't paid their tab for some up-front costs related to a bunch of engineering, research and development work that the supplier completed on their behalf. The lawsuit states that Chrysler agreed to cover these costs by paying a set per-piece fee, based on the expected quantity sold over the life of the systems. When Chrysler slashed production on the affected models, Faurecia asked for more money per item to recoup those costs in full, but they say Chrysler denied their claim. If that isn't bad enough, Faurecia even claims that Chrysler turned the system plans over to some Chinese firms to fill additional orders for similar models in their lineup. Chrysler hasn't had a chance to respond to these charges, but you can bet this fight won't be pretty. Thanks for the tip, Jack!

[Source: Crain's Detroit Business]


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  • 23 Comments
      • 5 Years Ago
      This explains so much... I freaking hate chrysler interiors with a passion, it hurts just to look at them sometimes... why should the high end chrysler have the same interior as the crappy one? Cheap bastards
      • 5 Years Ago
      Hahaha. That sucks.
      • 5 Years Ago
      On the other hand, I've heard that plastic stands up very well to incontinence, vomit, spilt shakes, french fries, and other catastrophes that might happen when the soccer moms that should be driving lose control while yammering on their cell phones.
      • 5 Years Ago
      I think the bigger story here is the outsourcing to China. If that is true my congressional delegation will be getting many angry emails. My Auto Bailout tax dollars are not going to a bunch of slave laborers so US workers can get screwed.
        • 5 Years Ago
        nadnarb: "If that is true my congressional delegation will be getting many angry emails."

        Harhar! Like they care! Congress _averaged_ 18% approval ratings in 08 and dipped as low as 7 in q4 (note to self: that was worse than Bush's, but we picked 2 of them to run the Executive...wtf?) and is sliding into worse territory for 09 (can they get negative?). Yet they still do whatever they want...angry emails or no.

        nadnarb: "Auto Bailout tax dollars are not going to a bunch of slave laborers so US workers can get screwed."
        Too late - oh yes they are. Those bailout tax dollars are effectively loaned to Automakers after being borrowed from the Chinese through treasury bills to begin with. It's not like Uncle Sam had $s to spend in the first place. But again, does that stop congress from "we must do something!", of course not...
      • 5 Years Ago
      I love Chrysler however, I do not understand why they want $110 million dollars. I'm pretty sure it doesn't cost that much to make Chrysler Interior Parts. Come ON
      • 5 Years Ago
      this can't be good . . .
      • 5 Years Ago
      R&D? Chrysler? Interiors?

      Wha-What?
      • 5 Years Ago
      So this is the company that makes the awful interiors for Chrysler! Good to know!
        • 5 Years Ago
        i think that faurecia isn't responsible, becau chrysler demanded low quality interior. You get what you pay, and at what quality you want..
        • 5 Years Ago
        They should sue themselves for letting such an awful product roll out the door, or the parent company (Daimler) who signed off on it.
        • 5 Years Ago
        It keeps sounding like Chrysler = D'bags. They seem to be tryin to bang other people in the biz every chance they can get. We get it Chrysler, you are poor, file for bankruptcy already.
        • 5 Years Ago
        @Jake B
        you're right. chrysler should be made to pay for car interiors that wont have cars built for them.

        that makes sense.

        so if chrysler orders 2000 interiors for cars but when the market takes a dump and they decide to build half that... they shold have to pay for all 2000???

        the whole market took a crap. everyone needs to bare the burden. instead of beating someone who's down.
      • 5 Years Ago
      This dispute has nothing to do with the quality of the interiors (and I'm amazed with all the dumb comments that think it does). I'm also in the auto supply business, and fortunately, we get paid for all he development work we do. Our business model does not depend on production for profitability, because we are product developers, not producers. We make money whether our clients make one part or 1-million. Unfortunately for Faurecia, they agreed (as a FAVOR to a cash-strapped Chrysler) to amortize their R&D over the parts run. Now Chrysler is trying to deprive a vendor of a rightful claim. Faurecia did the work, and Chrysler got the interiors, good or bad, that they demanded. Now the contract language and a bunch of lawyers will have to sort this out.
      • 5 Years Ago
      If the judge ever gets a look and feel on those interiors he/she is gonna toss the case out, and maybe award Chrysler some money.
      • 5 Years Ago
      Chrysler's interiors are about the most pale simple interiors there are in today's car world. I don't see a justification for such 110M amount for the engineering of said interiors..
      • 5 Years Ago
      Those two are made for each other.
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