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Chrysler Suing Daimler Over Parts for 2010 Models

Shortage of diesels, other parts could halt production.

by on Aug.26, 2009

Chrysler has gone to court to force former partner Daimler AG to continue supplying the heart of the Grand Cherokee Diesel - its engine.

Chrysler has gone to court to force former partner Daimler AG to continue supplying the heart of the Grand Cherokee Diesel - its engine.

The frosty split between former partners Daimler and Chrysler just got a lot colder, with the U.S. maker suing the German firm over its decision to stop supplying parts needed for some of Chrysler’s 2010 models.

This is the second time this month the two former allies, known for nearly a decade as DaimlerChrysler AG, have squared off in court.  Earlier in August, unsecured creditors who suffered significant losses as part of the Chrysler bankruptcy, laid out claims that Daimler fraudulently diverted $9 billion in assets immediately before divesting itself of its American arm, with the sale of Chrysler to Cerberus Capital Management.

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In the latest action, Chrysler went back to U.S. Bankruptcy Court Judge Albert Gonzalez to seek an order requiring Daimler to continue providing diesel engines, steering columns and torque convertors used in some of the American company’s 2010 products.  Without them, Chrysler asserted, it would be forced to halt production of some models.

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