Chrysler Group LLC is suing Daimler AG for refusing to honor contractual commitments to supply parts needed to continue production of some of its 2010 model vehicles.
Chrysler also is seeking an injunction to prevent Daimler from stopping the supply of diesel engines as well as torque converters and steering columns -- described as key components that cannot be obtained from any other supplier.
Among the vehicles facing shutdowns in production are the Dodge Challenger and Charger, Chrysler 300 and Jeep Grand Cherokee.
The supply relationship dates back to when Daimler owned Chrysler under the umbrella of DaimlerChrysler AG.
Daimler sold Chrysler to Cerberus Capital Management LP in 2007 but supply contracts were put in place to safeguard arrangements deemed worth preserving.
Chrysler Group filed the lawsuit against Daimler in U.S. bankruptcy court in New York on Friday in conjunction with Old Carco LLC, which is the part of the carmaker still in bankruptcy. A new Chrysler was created June 10 in an alliance with Fiat SpA.
In the lawsuit, the Auburn Hills company is seeking damages for any extra costs that accrue because of what it contends is a breach of contract by Daimler.
Daimler has no comment until it better explores the lawsuit, spokesman Han Tjan said Tuesday night.
Daimler has said Chrysler owes about $79 million to make up for not buying as many 2.2-liter diesel engines as the U.S. company originally planned to use in its vehicles sold in Europe.
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