Chrysler sues Daimler over key vehicle parts

[crowe]

Jeep Grand Cherokee SUV and Chrysler 300 delivery jeopardized
http://www.msnbc.msn.com/id/32565756/ns/business-autos/

[XDCX]

Based on what I've read Daimler is refusing to provide torque converters and steering columns that are needed to build the 2010 Charger, 300 and Grand Cherokee.

The amount of Daimler's demand is pretty small, so I doubt it will lead to much of a production delay. (Daimler's demanding $80 Million. That amounts to only 3 days worth of losses for the OLDCO version of Chrysler)

At the core of the dispute is the claim that Chrysler did not purchase enough diesel engines from Daimler for use in their European vehicles.

[XDCX]

For a second time, Daimler is threatening to withhold parts that could delay the introduction of new Chrysler vehicles stemming from a contract dispute with the OLDCO version of Chrysler.

This time the dispute involves axles that will be used in the 2011 Grand Cherokee.

Here's a link to the news report in the Detroit News - click here

I thought it was interesting that the article mentioned that the parts are needed for the next generation Jeep Grand Cherokee and Dodge Durango. While I had heard rumors of a new Durango, this is the first time I've seen anything in print suggesting that it was a sure thing.

Also, the article confirms the current production date for the 2011 Grand Cherokee is May, 2010.