"Daimler's conduct threatens to shut down Chrysler Group's manufacture of key product lines," Chrysler spokesman Gualberto Ranieri was quoted as saying by Autonews. As with the lawsuit filed by the creditors, Daimler defends itself by saying the allegations are without merit.
"We believe these claims are without merit, and we will defend ourselves vigorously," Daimler spokeswoman Julia Engelhardt told the source.
To the point, the battle began with Daimler's claims that Chrysler owes them 55 million euros to compensate for reduced volume for the 2.2l engine provided by Daimler and used on the PT Cruiser. Meaning Daimler claims Chrysler didn't buy as many engines as promised.
On the other hand, Chrysler says this issue was solved back in April. "The volume shortfall payment issue was resolved in an April 17, 2009, pre-petition agreement that settled a number of disputes between Daimler and the old Chrysler."
The Americans are now accusing Daimler of refusing to supply steering columns and torque converters, as a means to pressure Chrysler into paying the alleged debt.
"Chrysler Group believes that Daimler's misconduct is designed to extort a settlement by wrongfully withholding crucial parts that Daimler has contractually committed to supply to Chrysler Group," Ranieri said.
Ranieri called Daimler's behavior a direct violation of the aforementioned April agreement.
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