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French supplier Faurecia Interior Systems Inc. has filed a lawsuit in Michigan state court against Detroit automaker Chrysler, citing a breach of contract. Faurecia makes interior components for the PT Cruiser, Chrysler Sebring, Dodge Avenger, Jeep Liberty and Dodge Nitro.
Faurecia says Chrysler agreed to pay the supplier for up-front costs related to supplying interior products to Chrysler’s vehicle programs. The costs were to be added as a surcharge to the per-piece cost of the parts the automaker purchased, so that by the end of the vehicles’ life cycle, Faurecia would have recouped its project investment costs. If production volumes changed, the surcharges were to be adjusted to compensate.
The lawsuit contends the Chrysler has now slashed the production of the vehicle programs anywhere from 46 to 70 percent below what it initially forecast in its original contract with Faurecia in 2004, but has not adjusted the surcharge since at least 2007. In addition, the suit claims Chrysler purchased parts from a Chinese manufacturer for related vehicle programs using Faurecia’s designs.
The supplier is seeking $45 million in engineering and research and development costs, as well as an additional $58 million in damages from the unadjusted price terms.
Chrysler’s director of HR, diversity and legal communications, Mike Palese, said the lawsuit had not been served as of late Monday, and refused to comment until the automaker had had a chance to review the suit.
Faurecia builds center consoles, instrument panels, door panels, and other interior parts for the Chrysler vehicle programs.
Source: Crain’s Detroit Business
Sooooo! These are the ingrates who are responsible for the cheap interiors. Chrysler has been getting screwed! Maybe, it’s thes Chinese manufacturers who will ultimately be the ones who repair the damage that the damn French caused. No wonder Chrysler wants to go someplace else. They should have looked closely at that contract before though. It’s amazing what happens when you’re under the pressure of the entire US with discrepencies toward your interiors. It’s a shame they got caught! If this lawsuit wins in the French’s favor, they’ll for sure go bankrupt! :p
Oh, so they are they are the ones helping supply so many awful interiors. I am surprised the numbers are so high…