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February 10, 2009
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French parts supplier sues Chrysler for US$110 million

Detroit, Michigan – French auto parts supplier Faurecia Interior Systems Inc. has filed a US$110 million breach of contract lawsuit against Chrysler LLC, alleging that Chrysler did not pay for engineering and research and development costs for its interior parts, according to a report in Automotive News.

Faurecia’s development costs were incorporated into the per-piece cost of the parts, and were to be adjusted if Chrysler’s production volumes decreased. After Chrysler slashed production volumes, the suit contends that Chrysler refused to adjust the price.

The suit also alleges that Chrysler purchased interior components from a Chinese manufacturer who used Faurecia’s designs.

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