REPORT: Chrysler files suit against Daimler, says former parent is threatening production
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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Reader Comments (Page 1 of 2)
Ligor 5:30PM (8/26/2009)
M-B is just angry that Chrystler 300 is a much better car their own E-class which the 300 is based on
I know the E-class' interior is much better but with a ton of reliability issues in the E-classit's not even worth any money. I know a few poople that have this model and they can't even trade it in for more than 6-7k, that's a $50k car valued at nothing over 6-7 years
I don't knwo what elese they could be upset at Chrystler for, as they took it, ran it to the ground and just sold out of it when they figured they could not handle it -sure tey lost money but it was their stupid desicion on the first place
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MixiM 7:29PM (8/26/2009)
Well the truth is that the 300C was when brand new, built on an outdated platform from MB. With all quirks and bugs ironed out at the end of it production line MB donated a more mature base for the 300C to grow on, with the flaws minimized after it's launch in 1996 (!). The 300C was a nice looking car but hell man, it was built on MB leftovers! (Proper working ones though)
Mr.Oak 7:50PM (8/26/2009)
MixiM: They DONATED? Are you punch drunk? The 300C got hand-me down components, because Daimler refused to let them develop their original suspension design. Daimler was that dreadful, wicked stepmother that we always hear about.
Chazz 11:03PM (8/26/2009)
I hope MB is bent over and screwed royally by Chrysler.
The American public is ticked that Chrysler received bailout funds, but seriously, the issues Chrysler had just didn't develop over night. Several years of MB stealing the money and not reinvesting, signing off on models like the Sebring - You think Ralph Giles had a part in designing that???
M-B makes nice cars, but my desire to ever buy one are out the window - you are sensing I ticked??? H-ell I am. Chrysler was the darling of Detroit before M-B got it's slimy mitts on it and was left like a two -bit ho in the gutter.
Alex 11:56PM (8/26/2009)
@ Chazz
I am hellah ticked too!
You made a great point, M-B literally raped Chrysler from all it's own brand integrity and abandoned it when it got all the free R&D for it's own ugly SUV's
I hope Chrysler gets them good!
Mr.Oak 5:30PM (8/26/2009)
Nasty Mother....ers.
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yosh 5:30PM (8/26/2009)
Tell me something, why can I never reply properly to engadget or autoblog? It's useless.
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yosh 5:32PM (8/26/2009)
My previous comment didn't go through:
After raping cash-rich Chrysler and leaving it to die, I have absolutely no sympathy for Daimler. With the new JPC and 200c, I think Chrysler are heading in the right direction and I'll be happy when they completely sever all ties with that german company.
Daimler is done and MB is dying again, I promise you. Not long now before it becomes just another niche brand.
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Frank 8:34AM (8/27/2009)
Or, until the Nickel & Daimler parasite finds another host to suck the life out of. They want to do some joint venture stuff with BMW. Run BMW, run!
Protzenegger 11:47AM (8/27/2009)
Nickel & Daimler, heh.
Greg 5:37PM (8/26/2009)
Daimler fell on Chrysler like a spider - sucked all of the 9 billion in cash out of Chrysler's veins - and then sold the carcass to Cyberus. Now they say the company they hobbled won't buy enough engines and they won't sell the agreed upon parts for their new products. What incredible hubris!
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Kumar 5:48PM (8/26/2009)
No worries, Chrysler should just slap those diesels in the US PT Cruisers and sell them Stateside. They are trucks after all...so should have less EPA restrictions?
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MemphisNET 5:54PM (8/26/2009)
Shouldn't Daimlers beef be with OldCarCo -- not Chrysler LLC? I know its splitting hairs, but thats the point of a restructuring bankruptcy -- clean slate for the new company, BS like this for the old.
No sympathy for Daimler/Mercedes. They stole from Chryslers piggy for years (both cold hard cash and damaging an image that was already in a state of recovery) and now they want another payday??
Thankfully their reign of terror is pretty much over.
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Who 'Dis? 'Who 'Dat? 6:00PM (8/26/2009)
Boo and hiss on Daimler! Even after duping Chrysler with it's so-called "merger of equals" and not wanting to share components or technology for fear of "diluting the (Mercedes) brand," they're still trying to put the screws to the folks in Auburn Hills.
They had they're chance and blew it! And now that Chrysler (with the help of Fiat) is working to get back on it's feet, the folks in Stuttgart want to try and throw a wrench or two into the gears. Probably, as it was eluded to earlier, that Chrysler is on the verge of producing some products that may give the three-pointed star a run for it's money.
Not too mention ol' Doc Z. and company would most likely hate to see Fiat succeed where they failed.
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Mark S 9:26PM (8/26/2009)
"before Daimler and Chrysler finally kiss and make up"
Hopefully it was the old offer from Chrysler: You can kiss my .... And I'll meet you in the town square at noon so we can have a crowd witness it.
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maestro mario 6:33PM (8/26/2009)
Easy to fix: Install 2.2l diesel engines in north american vehicules...
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Mr.Oak 9:35AM (8/27/2009)
Keep your freakin' diesels. We're moving on.
farmer0904 6:38PM (8/26/2009)
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
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F50 7:07PM (8/26/2009)
@ Ligor, do you mean the old 90's E-Class, or the previous gen, or the current gen, or all of them.
I got this from another blog(Car blog) and I agree with it
"There’s only one way to settle this. Viper ACR vs. whatever piece of ubersh*t Mercedes they want to throw against it on the ‘Ring. If the Merc somehow wins they get their 78.7 million. If the Viper wins they get to shove one of those steering columns up Dieter Zetsche’s ass."
btw, If I had an LX car, can Mercedes fix it if I send it to them? (If its broken or maintainence)
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Maestro1 7:20PM (8/26/2009)
The new SLS supercar will wipe the floor with the Viper ACR.
And to everyone who says they sucked them dry, well they weren't in charge of everything. You seem to make it out that Chrysler executives had no control whatsoever which wasn't true. This 'merger of equals' was largely a partnership and frankly Chrysler cars were shoddily built even before Mercedes bought them. I won't deny Daimler doesn't carry some blame but you all sound like a bunch of bitter ex-employees. Both sides carry fault in this and lets note that Chrysler went bankrupt under Cerberus, not Daimler.
And whoever thinks Mercedes is dying has gotta be joking...they have plenty of money and sell more than just cars, and frankly they sell left and right throughout the world. America isn't the only market and its not comparable to the rest of the world.