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After charging Daimler AG with fraud, creditors of the old Chrysler filed a 31 page lawsuit last week claiming Daimler diverted billions of dollars from Chrysler by separating their financial division before the sale of 80.1% of the company to Cerberus Capital Management, two years ago.

It is now reported that Chrysler Group LLC is also suing Daimler AG for not honoring contractual commitments to supply parts that the company needs to continue some of its 2010 model year production. The Auburn Hills automaker is also seeking an injunction to prevent Daimler from obstructing the supply of diesel engines.

Vehicles that are facing shutdowns in production include the Dodge Challenger, Charger, Chrysler 300 and the Jeep Grand Cherokee.

Daimler sold Chrysler to Cerberus Capital Management in 2007. The new Chrysler Group LLC is now in an alliance with Fiat SpA.

- By: Stephen Calogera

Source: Detroit News

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