Chrysler sues TRW to get parts
Author admin | 03 Jul. 2009 | Automobile, Chrysler
DETROIT (Reuters) — Chrysler Group LLC has sued TRW Automotive Holdings Corp., accusing the auto parts company of refusing to supply parts and thereby jeopardizing its resumption of production next Monday after a two-month shutdown.
Chrysler, which emerged from banrkuptcy this month by selling most of its assets to a company led by Italy’s Fiat S.p.A., filed the lawsuit with the U.S. Bankruptcy Court in Manhattan on Wednesday.
The automaker asked for sanctions of $1 million a day against TRW if it does not make the shipments.
TRW representatives were not available for comment.
All of Chrysler’s plants have been idle since its bankruptcy filing on April 30.
“New Chrysler obtains the majority of its parts from suppliers on a ‘just in time’ basis. Accordingly, the timing of shipments is critical to New Chrysler’s ability to move forward with its business plans,” Chrysler said in the documents.
Under a June 10 sale agreement with Fiat and other buyers, Chrysler’s contracts with TRW and other suppliers were transferred to the new company led by Fiat.
Under the agreement, Chrysler has agreed to pay TRW $27.2 million in “cure amounts,” money owed to suppliers for contracts reached before Chrysler filed for bankruptcy protection.
TRW has disputed the settlement, saying its calculations of the amounts due under its contracts are in excess of the cure costs as adjusted by Chrysler.

