Chrysler Sues Daimler Over Supply Contract Disputes

Law360, New York (August 24, 2009, 1:31 PM EDT) -- Chrysler Group LLC has sued its former parent and current supplier Daimler AG for allegedly refusing to honor its component supply contracts following the American car giant's reorganization.

In an adversary complaint filed Aug. 21 in the U.S. Bankruptcy Court for the Southern District of New York, Chrysler said that by withholding necessary parts, Daimler is hindering Chrysler's efforts get its factories up and running in time to make 2010 vehicles.

“Daimler’s bad faith conduct and contractual breaches following the acquisition threaten to derail these efforts,...
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