Chrysler Group LLC has sued Daimler AG, accusing the German automaker of failing to uphold parts delivery contracts and jeopardizing the production of key 2010 vehicles.

The Auburn Hills, Michigan-based company said without the parts it will be unable to produce several 2010 model-year vehicles, including the Chrysler 300 and the Jeep Grand Cherokee SUV.

The lawsuit revolves around dispute over payments for diesel engines supplied by Daimler. Chrysler accused Daimler of using the dispute as a basis for refusing to sign deliveries of steering columns and torque converters.

“Chrysler Group believes Daimler’s effort to extort Chrysler Group into paying for costs for a diesel engine that Daimler agreed to forego a few months ago is a breach of its obligation to negotiate in good faith,” the company said.

Chrysler sues Daimler over key 2010 vehicle parts - yahoo.com

From the article: “Chrysler Group LLC may retire the engineering used to make its iconic 300C sedan in favor of more modern architecture jointly developed with Fiat SpA, said two people familiar with the situation.

The so-called “LX” platform, which was used to produce more than 210,000 cars last year, would be replaced by a new structure that could also underpin a full-sized sedan for Fiat’s Alfa Romeo brand, said the people, who declined to be identified because a final decision hasn’t been made.

The project would be the first joint product by Chrysler and Fiat and would be the basis for the U.S. carmaker’s highest- volume vehicles as well as Alfa Romeo’s largest sedan. Sergio Marchionne, chief executive officer of both automakers, has said a company needs to build at least one million vehicles on a single platform to be profitable.”

Chrysler May Replace 300C Engineering With Joint Fiat Platform - bloomberg.com