Chrysler only has one product set to launch in all of 2010 and now one of its 2011 vehicles is in jeopardy. The all-new 2011 Jeep Grand Cherokee may be delayed due to a parts dispute with the company’s former owners at Daimler.
Daimler was supposed to supply axles for the new Jeep SUV, but is withholding the parts due to another financial dispute. In that case, Daimler is claiming $80 million in compensation after a Chrysler agreement to purchase diesel engines from Daimler did not go as planned. Chrysler, however, is claiming that all old contracts are now irrelevant as the company’s previous financial matters were settled through bankruptcy court.
In a sign of hope that the Grand Cherokee may make it to market without much delay, both parties have agreed to see if they can settle the dispute outside of court. Still, the timing is tight as the parts are reported to be needed before the end of the month in order to build prototype vehicles that need at least 6 months of testing.
The axles aren’t the only item in question either, as court documents revealed that Daimler is also scheduled to supply transmissions and steering columns for several future Chrysler vehicles, including the next Dodge Durango, as well as the Chrysler 300 and Dodge Charger.
[Source: Detroit News]