Mercedes-Benz has filed a lawsuit against Cobasys LLC saying that the company isn’t delivering the batteries it promised for the upcoming Mercedes-Benz ML 450 hybrid. The issue could cause a delay in the launch of the ML 450 hybrid which is scheduled to arrive on the market in late 2009.

Cobasys, which supplies batteries for GM’s mild-hybrid sedans, is a joint venture between Energy Conversion Devices Inc and Chevron Corp. GM was close to buying Cobasys back in June but no final deal was announced.

Cobasys could not be reached for comment but according to Automotive News, the company said early July that it had stopped producing batteries for Mercedes-Benz because it had not been paid and that it had not agreed to produce batteries for Mercedes-Benz. Mercedes-Benz however says that it paid about $6 million for the battery development and that Cobasys had agreed to produce and deliver the batteries.

Furthermore, Mercedes-Benz says that Cobasys lied about its company’s financial health and capabilities in order to keep a customer.

Source: Automotive News (Subscription Required)