Chrysler faces vendor lawsuit over 'unpaid bills'

12 February 2009

12 February 2009 | Jake Kanter

Chrysler has reacted angrily after one of its suppliers launched legal action against it to claim back unpaid bills.

Earlier this week French vendor Faurecia filed a lawsuit against Chrysler claiming $110 million (£77.4 million) in damages, arguing the carmaker has failed to pay engineering costs the supplier claimed it is owed.

A spokesman for Chrysler said: "Faurecia has taken huge liberties in this lawsuit, grossly overstating alleged damages and totally absolving itself of any assumption of risk, contrary to our supply agreements with the company. We are not at liberty to discuss the matter further as it is now in litigation."

Faurecia confirmed it is taking legal action, but declined to comment further.

When Chrysler submitted plans for government loans last year, it said it needed as much as $9.2 billion (£6.4 billion) to pay parts suppliers in the first three months of 2009 (Web news, 3 December 2008).


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