• Aug 26, 2009
When Daimler offloaded Chrysler onto Cerberus back in 2007, the well-heeled German automaker was likely ecstatic. Considering the fact that Daimler left Chrysler without much in the way of new product, the feeling was likely mutual. While the two automakers have parted ways, Chrysler still relies on its former parent for some vital parts and as Automotive News tells it, Chrysler says that Daimler suddenly isn't in the mood to give them up.

Chrysler is reportedly suing Daimler for withholding steering columns and torque converters, saying that the shortage of vital parts is threatening the production of the Chrysler 300, Dodge Challenger and Charger, as well as the launch of the next generation Jeep Grand Cherokee. Daimler told AN that Chrysler's claims were "without merit," and at the same time, the German automaker is demanding $78 million from Chrysler for engines the company never delivered. In the formal complaint, Chrysler spokesman Gualberto Ranieri says Daimler's demand for payment "is designed to extort a settlement by wrongfully withholding crucial parts that Daimler has contractually committed to supply to Chrysler Group."

Daimler says Chrysler owes the money since the Auburn Hills, MI based automaker didn't order as many 2.2-liter diesel engines, which are offered in European PT Cruisers, as it agreed to use. Chrysler counters that an April 17 agreement between the two automakers settled several disputes between the two companies, including the volume shortfall. The agreement between the two automakers was likely a preemptive move prior to Chrysler's bankruptcy filing on April 30. Call us crazy, but it looks like it may be a while before Daimler and Chrysler finally kiss and make up.

[Source: Automotive News, subs req'd]


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    • 1 Second Ago
  • 31 Comments
      • 5 Years Ago
      I read a lot of the comments, not all. has anyone noticed the one thread here? Chrysler knew the Benz split was coming. My question is, with all the manufacturers in the US why not do some forward thinking. How about putting some of the people you want to buy your product back to work! It doesn't matter wht platform or design. If the don't work, they dont sell. lots of 300's out there. Im a MoPar guy, love them. That said, I've done everything but go over there and...
      • 5 Years Ago
      Tell me something, why can I never reply properly to engadget or autoblog? It's useless.
      • 5 Years Ago
      I don't think any babies would be crying if the 300, Charger and Challenger were put to sleep...
      • 5 Years Ago
      Quote: "Ahhh, arn't we kinda forgetting that Chrysler was the company that crapped on a whole bunch of people lately, dealerships, parts suppliers, union employees and salary employees, all the while keeping their books secret (private company).""

      Chrysler provided a detailed financial prospectus to the Congressional committees before getting the loans. And my recollection is that the UAW concessions, dealership closings, and FIAT merger were mandated by the US Government.

      • 5 Years Ago
      Nasty Mother....ers.
      • 5 Years Ago
      Easy to fix: Install 2.2l diesel engines in north american vehicules...
        • 5 Years Ago
        Keep your freakin' diesels. We're moving on.
      • 5 Years Ago
      FYI...

      I didn't mention the supplier name on purpose. Contact me directly if you are interested.

      http://www.carnorama.com/
      • 5 Years Ago
      To the best of my knowledge...

      The parts mentioned were part of Daimlers' old internal supply chain, which now belong to a major Tier I supplier. What's Chrysler complaining about? Approach the Tier I supplier directly and sort out a deal with them.

      Oh let me guess that costs money!?!? Well you have to spend money to make money. I am sure Chrysler is allowed to produce parts for their own vehicles.
      • 5 Years Ago
      Oh yeah, WHAT MONEY? MB, should get an IOU.
      • 5 Years Ago
      Mercedes is refusing to supply old Mercedes 5 speed automatics. Fine.

      Maybe this will force Chrysler/Fiat to finish its brand new 6 and 7 speed DSC automatic factory, that is completed and vacant, needing a few machine tools, and come out ahead. Withholding parts from the jointly designed Challenger, coming C300, and Grand Cherokee, will stop the MB production lines for all its derivative SUVS, that use that updated chassis. Chrysler could choose to not supply the PentaStar V6s with which MB planned to replace its entire line of obsolescent v6s... This would reveal who really did th chassis work on the MB over-priced SUVs. Chrysler has little use for those dirty diesels who only pass the emissions laws in backward Europe, and the coming minimal upgrading of emissions regulations there will necessitate that those 2.2 liter diesels be re-engineered even there. Even then, they cannot be used in America.

      Recall that MB needed access to the Chrysler' $9 Billion dollars cash pile. It had produced a turkey of a new S-Class that was crushed in reviews, and whose sales were plunging at the same time that its E-Class cars were in need of redesign. MB didn't have that cash. Both models saw the introduction of lots of electronics and software of which MB had little experience. As a consequence, that generation of MB cars were full of electronic and software bugs producing dreadful and even worse, unrepairable reliability. frankly it destroyed the MB reputation for quality cars, where cost was no object.

      But tit for tat only succeeds in assuaging the ego. It accomplishes little to solving the problem.
      • 5 Years Ago
      MB was a vampire that sucked on Chrysler's neck till it was bleed dry of all it's cash , then it had the nerve to drop Chrysler's dead body on the side of the road for Cyberus the crazy doctor that wanted to bring its dead body back to life . now chrysler is barely breathing again and now the German VAMPIRE MB wants more blood. gotto love it I GUESS
      • 5 Years Ago
      Yes, just for what DB did and still try to Chrysler, I will never own a Daimler product. Neither should you. Boycott the bastards!
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