Chrysler's messy breakup with Daimler continues to reverberate into the Fiat era, as the Detroit News reports today that a dispute over parts threatens to delay the 2010 launch of the 2011 Jeep Grand Cherokee. Also at risk are next-gen versions of the Dodge Durango and Charger, along with the Chrysler 300.
You'll recall that the redesigned Grand Cherokee is based on the Mercedes-Benz M-Class. Daimler AG manages the supply of major parts for it, including the axles. But Daimler is still sore at Chrysler for not buying as many diesels for European-market Jeeps, Dodges and Chryslers as it originally said it would, and it wants $80 million in compensation before it ships the axles. Chrysler says it would not be able to secure an alternate supplier for the axles until January 2011 -- significantly delaying the launch.
So Chrysler has amended a lawsuit it filed in U.S. bankruptcy court in August to settle all lingering parts disputes between the companies. The Detroit News quotes a Daimler AG spokesman as saying the matter can be resolved out of court. (Hmm, bet Daimler would like that.) Chrysler has asked the court to retire any debt claims between the companies and issue an injunction if Daimler won't ship the axles.
alman08 says:
10:24 AM, 10/ 2/09
not knowing what the deal was between Chrysler and Daimler about the diesels for European market, but can't Chrysler just start selling diesel Jeep here in the U.S. to solve that problem?
rsholland says:
10:29 AM, 10/ 2/09
Hope this can be worked out. The next GC is too good to have something like this happen.
alman08 says:
11:05 AM, 10/ 2/09
after reading the article in the Detroit News, quote, "Chrysler wants the court to stipulate that all past agreements remain in effect and no more money is owed. The automaker also wants an injunction if Daimler fails to ship parts in the future. ", in my opinion, Chrysler is ... um... how do I put it... um... JUST STUPID!
alman08 says:
11:08 AM, 10/ 2/09
As much as I like this new Jeep, I think Chrysler should do us all a fav and just fold it up. Hell, they should have just folded it up last year.
estreka says:
02:45 PM, 10/ 2/09
I'm not even convinced Chrysler will make it to the fall of 2010.
rallyandbosox says:
03:19 PM, 10/ 2/09
If Chrysler truly has a binding agreement in which it owes money for not producing enough diesels, how is Daimler at fault? How is it even possible for Chrysler to go to a judge and hope for an injunction against Daimler because it could not produce? It's either time for Chrysler to realize that they may be in breach of contract and accept paying up, or it's time for Fiat to realize they are still on a sinking ship and bail.
roar02ram says:
09:19 AM, 10/ 4/09
+1, Bob.
mikeolan says:
12:42 PM, 10/ 4/09
This is truly unfortunate, and it's Daimler (the company who bled 9 billion dollars from Chrysler) upset because they didn't re-invest in Chrysler's product and then in return decided to f-them over when sales were (unsurprisingly) poor. I