Chrysler reverse on court action

5 July 2009

06 July 2009

Chrysler has done a U-turn on its decision to sue supplier TRW Automotive.

The US carmaker launched the lawsuit against TRW last month, claiming the vendor jeopardised its plans to restart production by failing to confirm it will deliver vehicle parts.

All of Chrysler's production plants were left idle after it filed for Chapter 11 bankruptcy protection on 30 April. It emerged from the measure last month as the newly formed Chrysler Group.

The carmaker persisted with the action despite TRW supplying goods needed to restart manufacturing last week. But at a hearing on 30 June Chrysler agreed to withdraw the lawsuit. A spokesman said: "We will continue to work with suppliers for our mutual benefit."


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