Chrysler sues Daimler over vehicle parts

Published 5:00 am Thursday, August 27, 2009

NEW YORK Chrysler Group LLC has sued Daimler AG, accusing the German automaker of failing to abide by contracts requiring it to supply crucial parts and putting the production of key 2010 Chrysler vehicles in jeopardy.

The Auburn Hills, Mich.-based company said without the Daimler-supplied steering columns and torque converters, it will be unable to produce several 2010 model-year vehicles, including the Chrysler 300 and the Jeep Grand Cherokee SUV.

Chrysler filed the lawsuit in bankruptcy court in New York on Friday and is seeking unspecified damages from Daimler.

Chrysler emerged from Chapter 11 bankruptcy protection in June after the bulk of its assets were purchased by Italian automaker Fiat Group SpA. A large portion of Chryslers liabilities were left behind and are being liquidated under court supervision.

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